eBay

Media Management Spring Term 2011

Christine Alff 40202, 21st of January 2011

Vision and Mission

Vision

• Defines what an organization stands for and why it exists (core ideology) and the long-term goal (envisioned future) (Collins & Porras, 1996)

• Realization is tangible but also distant enough to create enthusiasm (Grimm, 2008)

Mission

• Spells out the underlying motivation for being in business in the first place (Collins & Rukstad, 2008)

What are we here for?

• Ideological pillar of the company (Grimm, 2008)

• Transfers long-term general goals (Grimm, 2008)

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What is Strategy?

Strategy

• choice of business models through which the firm will compete in the marketplace (Casadesus & Ricart, 2010)

• i.e. choosing a way to compete, a way to operate and create value for stakeholders

Business model

• Logic of the firm, the way it operates and how it creates value for its customers and stakeholders

• choices and consequences

Difference??

• Changes in the business model -> Business model ≠ Strategy

• Strategy is more than just the selection of a business model, it is a plan on how business model should be adapted in case of change

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Mission

What is eBay here for?

• eBay‘s mission statement:

“We help people trade practically anything on earth.” (Bnet, 2000)

• eBay is

• A place to buy

• A place to sell

• A place to shop

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Business Model

“eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything.“ (Ebay, 2011)

eBay:

• Online auction business model: participants bid for products and services over the Internet

• Buying and selling in an auction format via special software

• Marketplace revenues due to fees charged to sellers / advertisement

• Specific characteristics of this business model: many sellers, many bidders, no geographical constraints, no time constraints

• Choice Consequence

Online portal Broad reach, 24/7 accessibility, globalAuction model Used items and collectables

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Strategy

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How does eBay compete?

• Auction clearinghouse for used goods and collectables (in addition to overstocked items)

• Middleman function

• Mainly small sellers but also power sellers

• Flexibility

• “Buy-it-now” option

• A variety of categories

(retrieved from Compete Pulse, 2009)

...

THANKS

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Bibliography

Bnet (2000), The Auction Network Making Dominance A Bid For On-Line Dominance - eBay Inc - Statistical Data Included, http://findarticles.com/p/articles/mi_m0FNP/is_9_39/ai_63800035/, retrieved 21st of Jan 2011

Casadesus-Masanell, R. & Ricart, J.E., “From strategy to business models and onto tactics“, LRP 2010

Collins, J.C. & Porras, J.I., “Building your company‘s vision“, HBR, 1996.

Collis, D.J. & Rukstad, M.G., “Can you say what your strategy is?“, HBR, April 2008.

Compete Pulse (2009), eBay’s New Strategy: What Was Once Old is New Again, http://blog.compete.com/2009/03/17/ebay-auction-amazon-craigslist/, retrieved 20th of Jan 2011

eBay (2011), Who we are, http://www.eBayinc.com/who, retrieved 20th of Jan 2011

Grimm, U. (2008), Script of the lecture “Modul Strategisches Management – Strategieentwicklung), European Business School (EBS), Oestrich-Winkel

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