Ebay

Introduction

EBay prides itself on being the first to build communities within the e-commerce industry. EBay continues to attract consumers every day from all over the world. Based on the first mover advantage, eBay has dominated the customer to customer market and is continuously expanding the company into new ventures. With the success of any organization, eBay faces many competitors aspiring to enter a growing market. Being a pioneer in the e-business trade, eBay has many significant strengths and, opportunities as well as weaknesses and threats. Organizations such as the eBay green team and PayPal are designed to protect the environment while sustaining efficiency. A strategy that eBay has incorporated into becoming a leader in the industry is to constantly improve its website. EBay has included more effective payment methods and added new selling features that are friendlier to customers. Along with customer improvements, eBay has applied strict guidelines for employees to keep the organization working effectively. Implementing ideologies of respecting others and doing good things are some of the influences in eBay’s success. EBay has many reasons for its continuous achievement over the years. This success can be accredited to the leadership within the industry, internal environment, and the social responsibilities eBay continues to portray. (eBay, Investors, 2011)

Industry Analysis

First Quarter 2012 Financial Highlights (presented in millions, except per share data and percentages)

(Figure 1.1)

First Quarter

2012 2011 Change

GAAP

Net revenue $3,277 $2,546 $731 29%

Net income $570 $476 $94 20%

Earnings per diluted share $0.44 $0.36 $0.08 21%

Non-GAAP

Net income $725 $619 $106 17%

Earnings per diluted share $0.55 $0.47 $0.08 18%

(eBay, Investors, 2011)

“EBay encounters vigorous competition from numerous sources. For eBay’s Marketplaces segment, users can find, buy, sell and pay for...