eBay: King of the Online Auction Industry Louis Marino Patrick Kreiser

Slides:



Advertisements
Similar presentations
Chapter 3 E-Strategy.
Advertisements

Company’s macroenvironment
Information Systems, Organizations, and Strategy
“Analysis is the critical starting point of strategic thinking.”
Copyright ©2003 by South-Western, a division of Thomson Learning. All rights reserved. Slide 2-1 The Competitive Environment: Assessing Industry Attractiveness.
Analyzing the External Environment of the Firm
Industry and Competitive Analysis
Industry Analysis - Porter's Five Forces
Why Do a Situation Analysis
What are the industry’s business and economic traits?
COMPETITIVE STRATEGY - Dolly Dhamodiwala.
Chapter 2 The External Environment:
EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT
Lecture 2 External Environment Analysis & Globalisation.
McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc.
Industry and Competitive Analysis
1 Pertemuan Kesepuluh Industry and Competition Analysis.
The Strategic and Operational Planning Process
© 2003 The McGraw-Hill Companies, Inc. All rights reserved. Long-Term Financial Planning and Growth Chapter Four.
Conducting an Industry Analysis. Seven Questions for Industry Analysis 1. What are the industry dominant economic traits? 2. What competitive forces are.
1-1. Toys “R” Us Alan B. Eisner Keeley Townsend McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights.
Yum! Brands, Pizza Hut, and KFC Jeffrey A. Krug
I. Identification of Strategy (includes but not limited to SWOT) A. Firm Situation 1. General macro environment 2. Industry and Competitive analysis 
E-Commerce Business Models and Concepts
6-1 Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 6 Defining the Organization's Strategic Direction.
Strategic Planning Chapters 8: Competition. The Marketing Plan Marketing Strategy Product Promotion Distribution Price Marketing Mix Business Mission.
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
2-1 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2012 Pearson Canada Inc. 0 Chapter 4 Exploring the External Environment: Macro and Industry Dynamics.
The Strategy Environment Session 2 Business Strategy.
SWOT ANALYSIS.
Strategy Formulation and Implementation
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved
Chapter 3: Analyzing a Company’s External Environment
Industry Dynamics & Competitive Analysis
3. Competitive Forces Model Companies must contend with five competitive forces which you need to analyse (Figure 4-6) : 1Threat of new entrants 2Bargaining.
“To organize the world’s information, and make it universally accessible and useful.” ---Made by Boris.
Chapters Four & Five Identifying & Analyzing Attractive Markets.
External Analysis Macro-Environment
2-1 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
Business Strategy and Policy
Information Systems, Organizations, and Strategy
McGraw-Hill/Irwin© 2007 The McGraw-Hill Companies, Inc. All rights reserved. 3 3 Chapter Title 15/e PPT Evaluating a Company’s External Environment Screen.
ANALYSING THE BUSINESS ENVIRONMENT Failing to plan is planning to fail! The only constant in the modern world is change!
Competitor Analysis and Sources of Advantage Chapter Six M arket-Based Management, 4 th edition.
Lesson 3 Marketing Environment SWOT analysis Porter´s Five Forces Marketing Planning Marketing Environment SWOT analysis Porter´s Five Forces Marketing.
The External and Internal Environments Chapter Two Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Chapter 8Copyright (c) 2007 John Wiley & Sons, Inc.1 Global Marketing Management, 4e Chapter 8 Global Marketing Strategies.
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Evaluating a Company’s External Environment.
McGraw-Hill/Irwin Copyright © 2011 The McGraw-Hill Companies, All Rights Reserved. Driving Forces, Porter’s 5 Forces, Market Positioning Maps, and SWOT.
The Marketing Environment and Competitor Analysis
Chapter Eight The Internet and E-Commerce: Creating Value through E-Business Strategies.
3 chapter Student Version EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights.
McGraw-Hill/Irwin Copyright © 2011 The McGraw-Hill Companies, All Rights Reserved. Chapters 3 & 5 Driving Forces, Porter’s 5 Forces, Generic Competitive.
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter Eleven Strategies for Mature and Declining Markets.
Copyright © 2002 by The McGraw-Hill Companies, Inc. Information Technology & Management 2 nd Edition, Thompson Cats-Baril Chapter 6 Organizational Use.
THE EXTERNAL ENVIRONMENT Chapter 2. The Organization Owners & Directors Managers Employees The Task Environment Gov’t agencies Competitors Unions Suppliers.
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Example 1-Ad A.
INDUSTRY PROFILE of TOP INDUSTRY SECTORS IN CAMARINES SUR.
Michigan State University Global Online. The Structural Analysis of Industries Forces that Determine Industry Profitability Rivalry among current competitors.
CHAPTER 3 ANALYSING A COMPANY’S EXTERNAL ENVIRONMENT – Industry and External Analysis.
Chapter 8Kotabe & Helsen's Global Marketing Management, Third Edition, Global Marketing Management Masaaki Kotabe & Kristiaan Helsen Third Edition.
Ch 3 -1 Copyright 2007 Prentice Hall Chapter 3 The External Assessment Strategic Management: Concepts & Cases 11 th Edition Fred David.
Performance Evaluation System. A Situation Analysis A situation analysis identifies strategic options and opportunities A situation analysis involves.
Fundamentals of Strategic Advantage. The Strategic Cube Customer Power Supplier Power Present Competitors Potential Competitors Substitute Products COMPETITIVE.
3 Analyzing a Company’s External Environment Chapter
Macro-Environment Factors
COMPETITIVE ANALYSIS.
STRATEGIC ANALYIS OF BUSINESS
McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Presentation transcript:

eBay: King of the Online Auction Industry Louis Marino Patrick Kreiser McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay What is competition like in the online auction industry? Do a Five-Forces analysis to support your conclusion. McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay 2. What is the competitive arena in online auctions – local, regional, national, multi-national, or global? Is the arena changing? Is global competition a future possibility? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay 3. What forces are operating in the online auction macro-environment that have the power to alter the nature and structure of competition? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay 4. What does a strategic group map reveal about the positions of the major players in the online auction industry? Is eBay in a good position on the map? Why or why not? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay What do you see as the key success factors for firms in the online auction industry? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay What does a SWOT analysis reveal about eBay’s situation? Is the company in an attractive situation and position? Why or why not? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

What is your assessment of eBay’s financial condition? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay Does your competitive strength analysis of eBay and its rivals reveal that eBay has a competitive advantage or a disadvantage? What are the sources of the advantage or disadvantage? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay Based on your analysis of the industry and of eBay’s situation, what problems and issues does eBay’s top management need to address? Which ones are top priority? Low priority? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

eBay What actions would you recommend to Ms. Whitman and Mr. Omidyar to improve the company’s competitive position and long-term financial performance? McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Q1. Industry Environment Software, servers, and website hosting services readily available; high traffic websites have some clout Barriers relatively low except for marketing/ad costs; hard for incumbents to retaliate; likely entrants include other Internet portals POTENTIAL ENTRANTS INDUSTRY COMPETITORS SUPPLIERS BUYERS Rapid growth weakens rivalry; recent entry of competitors heightens rivalry; Jockeying centers on image, reputation, brand awareness, etc. low switching costs, moderate product differentiation Individuals have little leverage; power users may have some power; both users have low switching costs SUBSTITUTES Classified ads; flea markets, garage sales, live auctions – high transaction costs McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Q3. Driving Forces in the Macroenvironment Growing use of the Internet by individuals and households across the world (favorable) Recent entry of major competitors and the potential for further entry (unfavorable) Advances in Internet technology as concerns site reliability, security of credit card transactions, and user connection speeds (favorable) The long-term potential for global competition as the industry leaders maneuver and position themselves to contend for global market leadership McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

Q4. Strategic Map eBay Reputation/Brand Awareness Auction Categories Yahoo, Amazon Strong Med. Weak eBay QXL.com Classified Ads Reputation/Brand Awareness Niche auctions, Fairmarket.com Live auctions Flea markets/ Garage sales Auction Categories McGraw-Hill/Irwin Strategic Management, 3/e Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.