Ebay Business Analysis Essay

1829 Words 8 Pages
Internet Strategy Paper eBay, Inc.


eBay, the online auction web site, was founded in San Jose, California on September 3, 1995, by computer programmer Pierre Omidyar as AuctionWeb. The very first item sold on eBay was a broken laser pointer for $14.83. Chris Agarpao was hired as eBay's first employee and Jeff Skoll was hired as the first president of the company in 1996. In November 1996, eBay entered into its first third-party licensing deal with a company called Electronic Travel Auction to use SmartMarket Technology to sell plane tickets and other travel products. The company officially changed the name of its service from AuctionWeb to eBay in September 1997. They went public in 1998, and both Omidyar and Skoll
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Merchants accept Paypal all over the world. In 2004, eBay launched its Business & Industrial category, breaking into the industrial surplus business. They also acquired Skype, the world’s fastest growing Internet communication business, in October 2005. Skype allows people everywhere to make unlimited voice and video communication for free between the users of their software. This software is available in 27 different languages and is used worldwide. Shopping.com is another company that eBay acquired in August 2005. Shopping.com is one of the fastest growing shopping destinations on the Internet with sites in the United States, the United Kingdom, France, Germany and Australia. Rent.com, which was acquired by eBay in February 2005, is an online apartment listing service. With over 20,000 properties listed, consumers can check availability, rental rates, see virtual tours, and find roommates.

eBay is in a unique situation as being one the first organizations in their market. Through the use of acquisitions and positioning itself as a worldwide power, eBay is poised to lead the industry in their sector for some time to come.


Strengths Weaknesses Opportunities Threats
Competes on a worldwide level Fraud Ability to reach full potential of the company Competitors
Superior customer service Declining sales Growth potential Buyer/Seller decline
High stock price Controversy over their privacy policy

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