Ebay Case Study Solution

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1. COMPANY POSITION 1.1. Executive Summary This case study is about the Californian Fortune Global 500 company eBay Inc. It examines the business model of the former named company. As a matter of fact, this report provides an emphasis on financial and strategic analysis based on its external and internal environment analysis and company analysis of resources, competence and culture. The analysis will be provided based on three separate parts, as eBay’s revenues are earned primarily from three business segments: first Marketplaces, second Payments, and third its Enterprise division. The study will provide a broad overview over eBay’s current financial and strategic situation. Which is financial wise very healthy, but recently a bit deteriorating. …show more content…

Fast-growing companies are able to attract strong management talent and financial resources. In addition, growth can help companies overcome inertia and renew themselves, which is critical in changing market environments. Growth is, therefore, an important indicator of corporate health and success. (Raisch, S., & von Krogh, G. (2007). Navigating a path to smart growth. MIT Sloan Management Review, 48(3), p. 66) Regarding to this one of the three main issues eBay Inc. faces at the moment is that the growth of Internet users is slowing in many countries, where eBay has a significant presence. (eBay Inc. (2013). Form 10-K 2013, p. 14) Thus they will increasingly need to focus on keeping their existing users, especially their top buyers and sellers, who bring the most revenue. In addition to this they need to maintain their PayPal account holders, again it is crucial that they can keep the merchant services business, which generate a high revenue for eBay, active and might even increase their activity level. So their websites and mobile platforms can continue to grow. Besides that, there are also countries where the number of Internet users is growing, even with an accelerating pace. The problem is that eBay often does not have a significant presence in those regions for instance Brazil/Latin America, Russia and China. If the company is unable to establish their business in such developing markets, their future growth would be negatively influenced. If users in such markets exhibit different behaviors than those from their more developed markets, they might see fewer interactions, lower levels of engagement, lower conversion, and/or lower values of each interaction or conversion. Thus generating less revenue than expected and

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