This paper intends to conduct a company analysis on eBay Inc. Both the external and internal audit have been included in this report. Tools such as PESTEL, SWOT, Consumer Profile Matrix (CPM) and External Factor Evaluation Matrix (EFEM) have been used in the report to conduct the external analysis. On the other hand, financial ratios have been computed in the internal analysis section.
eBay Inc. is an internet based multinational corporation headquartered in California and is one of the largest trending online market place for consumer goods and services. This case study focuses on the analysis of economic performance and growth of eBay Inc. The paper analysis in depth the core values and the mission of the company and then utilizes the analysis tools like PESTLE and SWOT for studying the internal and external factors that are accelerating the business performance of the company. On the other hand Consumer Profile Matrix (CPM) illustrates the comparative perspective of the company in the online market with its competitor Amazon. The case study assesses the major internal strengths and weaknesses of the company by IFE (Internal Factors Evaluation) and EFE (External Factor Evaluation) matrixes. The case study ends with the financial ratio analysis evaluated from the annual financial statement of the company to have an overview of the financial strength of eBay Inc.
1.0 Vision, Mission/ Objectives and Values
eBay Inc. was in fact the first virtual online business platform for business entrepreneurs founded by Pierre Omidyar in 1995. Its major subsidiaries operating in America and other parts of the world are MercadolLibre, Inc., StubHub, half.com, Auction Co., eBay Motors etc. It has been experiencing tremendous growth in terms of increasing number of active dealers and market share in the global E-commerce market. The revenues of the market place grew by 13%, whereas the number of active users of the eBay forum increased by 14% which implies the healthy outlook of the company (Forbes.com, 2014).The mission or the main objective of the company is to create a vast online market place by expanding across the three main prospects of the online trading i.e. categories, geographies and formats. It not only aims at expanding its range of online products through incorporating wide number of categories and distinctive format of trading online but also strengthening their franchise in the E-commerce platform by investing more in their core market segments. eBay Inc. operations has been segregated into three major segments to fulfil its objectives:
1. Marketplaces Services and Platforms: It includes the marketplaces platforms like eBay.com, StubHub, Shopping.com, Online Advertising, Online Classifieds and Rent.com. While StubHub is a market place for buying and selling of tickets of shows, sports, events and theatres online, Shopping.com comes as a unique platform for comparison of millions of products through reviews. The Rent.com offers the listings of apartments for rents, whereas the Online Advertisements and Classifieds segments of eBay Inc. offers the reporting of advertisements and help the ones seeking for jobs and other services at a local level (David, 2010).
2. Payments: The payments portion of eBay Inc. includes two most trusted online transaction services like PayPal and Bill Me Later which allows the consumers to make and receive payments as well as attain instant credit in a secured way (David, 2010).
3. Communications: Skype was acquired by eBay Inc., is one of the leading Internet communication platform which allows buyers and seller to have 24/7 communication through the services of voice and video conferencing (David, 2010).