Portfolio composition is subject to change at any time and references to specific securities, industries and sectors in this letter are not recommendations to purchase or sell any particular security. The pricing policy is mainly demand driven and customer oriented. Accordingly, eBay does not have any costs associated with Covid issues for warehouse workers, wage-creep, or the other labor-oriented issues that Amazon has had to deal with lately. Readers can insert their own multiples here in picking whatever number they think is realistic. There are a few specific elements of eBay’s business model that they recognized as key to its success they are: By implementing their business model, eBay employed three main tactics. The … The business model of eBay deals with the Business to Consumer and Consumer to Consumer Sales via eBay website and application.. Business Strategies of eBay Business Model eBays has been continuously transforming it self to the better version from the beginning. eBay’s registered users had grown six-fold, to over 2 million. Founded in the year 1995, eBay is an e-commerce corporation which is working all around the world. Using a very healthy multiple compared to other high-growth digital behemoths, we estimate that AWS would be worth about $350 billion at 50 times after-tax profits. Why does EBAY sell for such a steep discount to Amazon? Contrast eBay’s original business model with its current business model. (Photo: Public Domain) eBay … For the most part, for as long as a couple of years eBay business … Contrast ebay’s original business model, ebay’s current business model … Current and future portfolio holdings are subject to risk. The outlook for both eBay and the online auction industry holds great promise, as is evidenced through the study of SWOT analysis, the driving forces of the industry, key success factors, eBay’s financial status, and eBay’s positioning in the market. It relied … ebay’s ecommerce was focused on online auction market. About How much was it sold on eBay … ... Ebay Case Study … eBay also makes money through advertising on its … On June 4, 2020, eBay Inc (NASDAQ:EBAY) released a business update to make investors aware that the quarantine circumstances have caused their business … The author of this theory suggests that firm must be … eBay was the creator of the online auction industry. eBay and Amazon case study  7/30/2013 eBay, Inc. and Amazon.com (A) Situation of the case: eBay is now faced with a direct competitor, Amazon.com Even though Amazon.com has received most of the hype and publicity surrounding e-commerce, eBay has also built an innovative business … Amazon’s fee structure is a bit more complicated, … A case study focusing on eBay strategy. 1. Unsubscribe at any time. Contrast eBay’s original business model with its latest proposed business model. Sellers are charged a non-refundable … By showing the customers that their feedback, opinions, and feelings are important eBay has gained tremendous ground with their customers. (Photo: Public Domain) eBay … Ending ... Make Offer - Tumi Alpha 3 Organizer Genuine Leather Laptop Bag Briefcase Business case … They are preparing to sell the classified advertising business for $8-10 billion and eBay has a market capitalization of $40 billion. EBAY is a virtual exchange where … eBay now holds the top spot in the online auction industry. Today, eBay is continuously the brand preference with over 39 market presence and with $60 billion of the total value of sold items on the site’s trading platform. These companies are in e-commerce and have had the state governments of the U.S. shut down most of the physical locations of their competitors. Ebay Case Study: EBay is the American multinational corporation which offers the services of online auctions (the primary activity), internet stores, shopping, money transfer, etc. eBay core business is a platform business model that makes money from transaction fees happening through its marketplaces (eBay and StubHub). By partnering with established foreign companies, like Alando in Germany, iBazar in France, Tradera in Sweden, Internet Auction in South Korea and Bazee in India, eBay is able to easily transition into that countries culture with the help of citizens who work with the partnering company. Case Study: America Online (AOL) Merger with Time Warner (TWX), Marketing Orientation Approach to Business, The Technology Push for Knowledge Management, How to Develop Positive Relationships with Individuals and Organizations Outside of Your Business, Competitive Analysis of DELL using Porter's Five Forces Model, Case Study: Amazon.com Situation Analysis. The ‘Making eBay Work’ case study is divided into three sections namely; eBay’s business model, eBay’s management and Competition and cooperation. Naiya Sharma; 13 November 2019; 7402; eBay … Contrast ebay’s original business model with its current business model. Amazon’s fee structure is a bit more complicated, … If AWS is worth $500 billion, or around $1,000 per share of Amazon, then the stock market (Mr. Market) is pricing the e-commerce/fly wheel side of Amazon at $1,550 per share and putting a P/E multiple of 188 times on its 2019 GAAP earnings. Therefore, we performed the case study using one of the most popular e commerce site “eBay”. During her tenure, Whitman helped eBay enter China, integrated globally recognized brands like PayPal and Skype into eBay portfolio and successfully steered the company through the dot-com bust by staying focused on its core users and core competency-online auctions. Development of online auction model has helped the business to operate at low cost in the market. This site uses Akismet to reduce spam. Competitors 4. today 3. Its technology may have been innovative- but its business model was not. Business Strategies of eBay Business Model eBays has been continuously transforming it self to the better version from the beginning. Second, the operating margins on eBay have averaged 24%, versus Amazon's without AWS of less than 1% over the last seven years. This Missive and others are available at www.smeadcap.com. Summary 1. Case Study Questions on eBay 1. We won't send you spam. 1. Using the forward expected GAAP earnings of $3.50 for eBay, Graham’s formula implies Intrinsic Value of $91 per share vs. its current price of $47.69 per share as of June 15, 2020. This new strategic market and business model then showed positive results. Being the largest online trading forum with a critical mass of buyers, sellers, and items listed for sale, Its compelling and entertaining environment, which had strong values, established rules and procedures that facilitated communication between buyers and sellers, Establishing programs such as Safeharbor to aid in disputes and to punish users who violate eBay, An intuitive user interface that was easy to understand, arranged by topics, and fully automated. Using forward GAAP expectations of $18.86 for Amazon implies $927 per share Intrinsic Value against it’s current $2,550 trading level. The main ways that eBay differentiates themselves is through: Why the Differentiation Strategy Works Best for eBay. The first ranked online auction industry commands significant revenues that continue to increase the. Constantly reinventing itself since the beginning the well-known Web site, which makes it clear that valuewalk is... 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