Deal or no Deal'

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• Deal or no Deal.

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Anything and Everything.
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Types of Online Auctions

• B2B
• B2C
• P2P- Geared to three types of consumers
• Bargain hunters
• Collectors
• Sellers

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Principle Revenue Streams

• Charging sellers for listing goods
• Charging a commission on all sales
• Selling advertising on web sites
• Selling own new/used merchandise

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History of

• Formed in 1995 by Pierre Omidyar
• Help people trade practically anything on
  Earth. and Do business just like in the old
  days.
• Tremendous growth
• 1999- listed over 3 million items
• 7.7 million registered users
• 1.8 million unique visitors daily

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• 1997-Hired Margaret Whitman as CEO and president
• IPO on September 24, 1998 66 million in one day.
  
• Secondary offering in April of 1999 generated
  another 600 million

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Initial Strategic Objectives

• Grow eBay community and strengthen brand
• Broaden trading platform and develop specific
  selling regions
• Increase user trust and safety
• Develop personalized web features
• Expand pre and post trade added value services
• Develop international market

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Tactics Employed

• Sought to build strategic partnerships in all
  stages of their value chain
• Actively sought customer feedback
• Actively monitored environment for developing
  opportunities and trends in the marketplace

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Strengths

• First big player in online auctions
• Largest market share- 80 from 1995-1998
• Name recognition
• Strong Management team
• Prestigious Board of Directors
• Over 250 strategic alliances
• zero inventory
• Recognized market factors and reacted proactively

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Example Creation of Regional Markets
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Weaknesses

• Past inattention to underlying technology causing
  uncertainty
• Large number of alliances
• Solely an auction site-no other draws
• Weaknesses inherent with online
  companies-mistrust, lack of bricks and mortar
• Addition of Buy it Now option

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Opportunities

• International markets
• Create
• Acquire
• Partner
• Niche markets
• eBay Business Exchange (B2B)

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Threats

• Emerging Competition, especially Amazon and
  Yahoo!
• Profitability and low barriers to entry attract
  new competition
• Competition is able to attract more unique
  visitors due to other services provided
• Danger of prior alliances turning into
  competition
• Emergence of Niche auction sites
• Flattening volumes

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Strategic Solutions

• Partner with a known online search engine such as
  Google, Yahoo!, etc
• Increase web presence
• Increase traffic
• Expand into electronic storefront
• Proprietary vs partnership with Amazon
• Offer fixed priced purchasing
• Satisfy buy it now customers
• Strays away from auction atmosphere

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Todays eBay

• 1.9 billion listing
• 180.6 million confirmed users
• Net Revenue 1.329 billion
• 42 growth
• 28 operating margin
• Acquisition of Pay Pal and Scype
• Legal issues regarding Buy it Now rights
• Continued fears regarding competition

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Today
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