An Analysis of eBay Inc., 2023 Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the broad macro-environment and micro-environment of eBay Inc.
- Evaluate eBay Inc.'s strategy, and business environment in order to identify issues, risks, and opportunities and how they affect its operations and strategic position in a market, using concepts such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies.
- Understand the concept of a strategy analysis and how to apply it to a real case study company.
1.0 INTRODUCTION
Company profile
eBay Inc. was formed in September 1995 by Pierre M. Omidyar as a sole proprietorship and it was incorporated in California in May 1996. It was later reincorporated in April 1998, in Delaware. The company has its headquarters in San Jose, California.
eBay is a global marketplace platform that connects more than 190 markets around the world. It is a global commerce leader and one of the largest and most vibrant marketplaces for discovering great value and unique selection. The company earns most of its revenue through fees collected on paid sales, inclusive of payment processing and advertising. The company generated an annual revenue of $9.7 billion in 2022 which was a decrease from that generated in 2021 which was $ 10.4 billion (eBay Inc. Annual Report 2022).
eBay operates through the following platforms; Marketplace, Classifieds, and StubHub (Forbes, 2023). As of 2023, the company has a total of 10,800 employees. eBay has a market share of 4.5% (Reuters, 2023).
Industry Overview
E-commerce has developed as a vital component of global retail in recent years. The internet has revolutionized the way in which goods are bought and sold, and the digitalization of modern society has enabled consumers worldwide to enjoy the benefits of online transactions. E-commerce offers convenience, variety, and efficiency for both buyers and sellers. The top competitors in this industry include; Amazon, Alibaba, Prosus, and Pinduoduo, and others (statista, 2023).
This report is going to use the case study of eBay Inc. to examine the macro and microenvironment of the e-commerce industry. It will use frameworks such as PESTLE, SWOT, Porter's Five Forces, VRIO, and generic competitive strategies. This report is going to undertake a strategic overview of eBay Inc., including its financial performance, competitive microenvironment, competitive advantage, technological improvement, pricing strategy, and many others.
Key questions to answer include; what are the key success factors for eBay? What is eBay's business model and strategy? What are the key drivers of profitability in eBay's business model? What is eBay's SWOT analysis?