Ebay Inc Strategic Management

Strategic Management |

2nd Individual Case Analysis (eBay Inc.-2009) |

NAZIFA BTE ABD. GHANIMR111037 |

Associated Professor Dr. Mas Bambang Baroto

International Business School

University Technology Malaysia

June 2012

Contents

1.0 Executive Summary 4

2.0 Vision and Mission Analysis 4

2.1 Vision: There is no vision stated in the case 4

2.2 Mission 5

3.1 PEST Analysis 6

3.2 Competitive Analysis 9

3.3 Industry Analysis 12

3.3.1 The Description of The Industry 12

3.3.2 Rivalry Among Competitor 14

3.3.3 Potential Entry of New Competitor 21

3.3.4 Potential Development of Substitute Products 22

3.3.5 Bargaining Power of Suppliers 24

3.3.6 Bargaining Power of Consumers 25

3.3.7 Conclusion of the Industry 26

3.6 Defining the Key Success 28

3.6 Opportunities and Threats 31

3.7 The External Evaluation Factor (EFE) 38

3.8 Competitive Profile Matrix Analysis 42

4.0 Internal Analysis 43

4.1 Cultural Analysis 43

4.2 Management Functions 44

4.3 Marketing Strategy 52

4.4 Financial Analysis 61

4.4.1 Financial Ratio 61

4.5 Production/Operation 66

4.6 Research & Development (R&D) 79

4.7 Management Information Systems Audit 79

4.8 Value Chain Analysis (VCA) 80

4.9 Strengths and Weaknesses 87

4.9.1 Internal Factor Evaluation (IFE) Matrix 102

5.0 Existing Objectives and Strategies 106

5.3 Strategies 109

5.3.1 Strategies in Action 109

5.3.1 Generic Strategies (Business Level Strategies ) 117

6.0 Strategy Formulation Tools 119

6.1 SWOT Analysis 119

6.2 SPACE Analysis 126

6.3 BCG Analysis 129

6.4 IE Analysis 129

6.5 Grand Strategy Matrix 130

6.6 Wrap Up Process 132

6.7 The Qualitative Strategic Planning Matrix (QSPM) 133

7.0 The New Strategies 137

7.1 Value Chain 140

1.0 Executive Summary

EBay Inc. encompasses eBay.com, the online marketplace, PayPal, which refers to the online payments platform, and Skype, the Voice over Internet Protocol (VoIP) offered by eBay’s...