e-bay tizimi haqida - tfiel.tfi.uz/images/bay.pdf- ife matrix ?? external assessment - efe matrix -...

Iminjonov Shohruh 1

E-bay tizimi

haqida

ma’lumotlar

Ayupov R.X.

Iminjonov Shohruh 2

Overview

Some Cool Facts

Who we are,

What we sell,

Where we are

Mission and Vision

Internal Assessment

- Financial Condition

- IFE Matrix ??

External Assessment

- EFE Matrix

- CPM Matrix

Strategy Formulation

- SWOT Matrix

- Space Matrix

- IE Matrix

- Grand Strategy Matrix

- QSPM Matrix

- Matrix Analysis

Strategic Planning for the Future

EPS/EBIT

Decisions/Implementation/Evaluation

2004&05 Financials

eBay press releases

Iminjonov Shohruh 3

eBay is evolution

• 1996 – 1998: US only, collectibles only – Started by Pierre Omidyar to assist his girl friend in collecting Pez

Dispensers

• 1999 – Moving beyond collectibles

• 1999 – Going global

• 2000 – Introducing Fixed Price and eBay Stores

• 2002 – PayPal: removing friction and building a huge new business

• 2004 – 2005: Creating other marketplaces → Marktplaats, Mobile, Rent.com, Shopping.com, Kijiji, ProStores

Common theme – expanding our vision, our market and our opportunity

Aspirational goal of growing faster than e-commerce

Iminjonov Shohruh 4

High performance company

Years since started

Iminjonov Shohruh 5

Registered users

Iminjonov Shohruh 6

Gross merchandise volume

Iminjonov Shohruh 7

Total PayPal Accounts

Iminjonov Shohruh 8

PayPal Payment Growth

Iminjonov Shohruh 9

Who we Are

Founded in September 1995, eBay is The

World's Online Marketplace® for the sale of

goods and services by a diverse community of

individuals and small businesses. Today, the

eBay community includes more than a hundred

million registered members from around the

world. People spend more time on eBay than

any other online site, making it the most popular

shopping destination on the Internet.

Iminjonov Shohruh 10

What we Sell

On an average day, there are millions of items listed on eBay. People come to eBay to buy and sell items in thousands of categories from collectibles like trading cards, antiques, dolls, and house wares to practical items like used cars, clothing, books and CDs, and electronics. Buyers have the option to purchase items in an auction-style format or items can be purchased at a fixed price through a feature called Buy It Now.


Where we Are

People from all over the world buy and sell on eBay. Currently, eBay has local sites that serve Australia, Austria, Belgium, Canada, China, France, Germany, Hong Kong, India, Ireland, Italy, Malaysia, the Netherlands, New Zealand, the Philippines, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, the United Kingdom, and the United States. In addition, eBay has a presence in Latin America through its investment MercadoLibre.com.


eBay’s Community Values

eBay is a community that encourages open and honest communication among all its members. Our community is guided by five fundamental values:

– We believe people are basically good.

– We believe everyone has something to contribute.

– We believe that an honest, open environment can bring out the best in people.

– We recognize and respect everyone as a unique individual.

– We encourage you to treat others the way you want to be treated.


eBay's mission is to provide a global trading

platform where practically anyone can

trade practically anything.

1

eBay’s Mission Statement


Proposed Mission Statement

eBay’s mission is to be the world’s most utilized and profitable “trading post.” Having bright and talented employees that are dedicated to serving both customers and communities, eBay provides the most technologically advanced, reliable, and secure trading platform available to anyone, anywhere, while always doing business in a highly ethical manner.

1


Our vision at eBay is provide an online

business to enable anyone to auction

practically anything.

1

Proposed Vision Statement


External Audit


2

Opportunities

1. Current Internet usage estimated to be 420 million worldwide including 180

million in the US.

2. Generation X and Y entering the workforce.

3. Foreign markets especially in Asia are improving.

4. US and Mexico exceeded $3 trillion in online sales in 2003.

5. E-commerce in Latin America expected to grow to $82 billion in 2004.

6. Under 25 percent of online North American households made an auction

purchase in 2003.

7. Online auction sales are estimated to reach $54 billion in 2007.

8. The price of personal computers continues to fall.

9. Internet sales remain tax free.

10. Some customers prefer to finance large purchases "in house"

Opportunities


Threats

1. Online businesses could possibly be subject to future taxation.

2. Medium fixed cost structure - barrier to entry not significantly high.

3. Ongoining fraud issues, with merchants not sending payment or products.

4. Many people feel the Internet is an unsafe medium to conduct financial

business.

5. Many households still do not own a PC.

6. Despite improvements, many foreign economies are still unstable.

7. High unemployment rates in the US.

8. Transportation systems in foreign countries could be poor for delivering

products.

9. Fluctuations in currency and exchange rates, could limit international business.

10. Possible website security problems such as hacking.

Threats


Opportunities Weight Rating Weighted Score

1. Current Internet usage estimated to be 420 million worldwide

including 180 million in the US.0.07 4 0.28

2. Generation X and Y entering the workforce. 0.02 3 0.06

3. Foreign markets especially in Asia are improving. 0.03 2 0.06

4. US and Mexico exceeded $3 trillion in online sales in 2003. 0.04 3 0.12

5. E-commerce in Latin America expected to grow to $82 billion in

2004.0.03 2 0.06

6. Under 25 percent of online North American households made an

auction purchase in 2003.0.07 2 0.14

7. Online auction sales are estimated to reach $54 billion in 2007. 0.08 4 0.32

8. The price of personal computers continues to fall. 0.04 3 0.12

9. Internet sales remain tax free. 0.04 3 0.12

10. Some customers prefer to finance large purchases "in house" 0.03 1 0.03

External Factor Evaluation Matrix (EFE)

3

EFE Matrix


EFE Matrix

Threats Weight Rating Weighted Score

1. Online businesses could possibly be subject to future taxation. 0.04 3 0.12

2. Medium fixed cost structure - barrier to entry not significantly high. 0.10 3 0.30

3. Ongoining fraud issues, with merchants not sending payment or

products.0.08 3 0.24

4. Many people feel the Internet is an unsafe medium to conduct

financial business.0.07 2 0.14

5. Many households still do not own a PC. 0.07 1 0.07

6. Despite improvements, many foreign economies are still unstable. 0.03 2 0.06

7. High unemployment rates in the US. 0.05 1 0.05

8. Transportation systems in foreign countries could be poor for

delivering products.0.02 1 0.02

9. Fluctuations in currency and exchange rates, could limit international

business.0.02 2 0.04

10. Possible website security problems such as hacking. 0.07 3 0.21

1.00 2.56TOTALS


Weight Rating Score Rating Score Rating Score

0.05 2 0.10 4 0.20 1 0.05

Market Penetration 0.06 4 0.24 4 0.24 2 0.12

Customer Service 0.08 3 0.24 4 0.32 2 0.16

Brand Awareness 0.10 4 0.40 4 0.40 2 0.20

User friendly website 0.05 3 0.15 4 0.20 2 0.10

Revenue Growth 0.15 3 0.45 4 0.60 2 0.30

Financial Condition 0.15 3 0.45 2 0.30 2 0.30

Customer Loyalty 0.05 4 0.20 3 0.15 3 0.15

Market Share 0.10 4 0.40 4 0.40 1 0.10

Product Quality 0.08 4 0.32 4 0.32 4 0.32

Information about user 0.05 4 0.20 4 0.20 3 0.15

Price Competitiveness 0.08 3 0.24 3 0.24 3 0.24

1.00 3.39 3.57 2.19Totals

Critical Success Factors

eBay

Competitive Profile Matrix (CPM)

Amazon Yahoo! Auction

Advertising

CPM

4


Internal Audit


Organizational Team

• Beth Axelrod, Senior Vice President, Human Resources • Matt Bannick, President, eBay International • William C. Cobb, President, eBay North America • John Donahoe, President, eBay Marketplace • Michael Jacobson, Senior Vice President and General

Counsel • Jeff Jordan, President, PayPal • Pierre Omidyar, Founder and Chairman of the Board • Bob Swan, Senior Vice President, Finance and Chief

Financial Officer • Maynard Webb, Chief Operating Officer

• Meg Whitman, President and CEO


Key Financials

• End of year 2003

– Net Income grew to $442 million, up 77%

– Resulted in record operating cash flows of $874

million, up 82%

– Year end Balance Sheet

• $5.8 billion in total assets

• $2.7 billion in cash and investments


Key Financial Ratios

Company Industry Sector S&P 500

Valuation Ratios

P/E Ratio (TTM) 97.12 41.01 28.90 24.01

Beta 1.77 1.30 0.96 1.00

Growth Rates %

Sales - 5 Yr Growth Rate 90.58 35.47 17.25 9.30

EPS (MRQ) vs Qtr 1 Yr Ago 55.07 27.30 15.43 28.69

EPS (TTM) vs TTM 1 Yr Ago 60.76 27.58 16.37 21.92

EPS - 5 Yr Growth Rate 111.74 43.79 15.23 12.15

Financial Strength

Quick Ratio (MRQ) 3.13 1.22 0.93 1.26

Total Debt to Equity (MRQ) 0.03 0.73 0.82 0.85

5


Key Financial Ratios Company Industry Sector S&P 500

Profitability Ratios %

Gross Margin (TTM) 80.78 42.23 42.84 47.32

Gross Margin - 5 Yr Avg 79.48 41.08 42.06 47.01

Operating Margin (TTM) 29.01 11.97 12.90 20.33

Operating Margin - 5 Yr Avg 16.21 6.75 11.21 18.35

Net Profit Margin (TTM) 21.00 7.76 7.54 13.12

Net Profit Margin - 5 Yr Avg 13.53 3.74 7.62 11.59

Management Effectiveness %

Return on Assets (TTM) 9.10 8.29 5.91 6.40

Return on Investment (TTM) 10.18 11.53 7.98 9.97

Return on Equity (TTM) 10.50 14.04 13.51 18.71

www.investor.stockpoint.com


eBay Stock Information


eBay as an Investment


Strengths

1. eBay is the most well known online auction company in the world.

2. Strong auction community of loyal customers.

3. Excellent financial situation.

4. Have a fair payment system that encourages merchants to list products.

5. Strong presence in strategic global markets.

6. Experienced management team.

7. eBay has very little inventory since they do not actually take position of

items sold on their site.

8. Strong customer service.

9. Percent of revenue in international markets increasing significantly.


Weaknesses

1. Weak promotional and marketing activities

2. eBay does not pay dividends on their stock.

3. Some customers feel the website is cluttered

4. eBay’s position in the business to business (B2B) market is weak.

5. eBay has very little debt, therefore the company is not taking advantage

of low interest rates to expand.

6. eBay has a higher tax rate since they do not take advantage of

depreciation as well as other companies.

7. The company relies too much on word of mouth advertising, assuming

everyone already knows about eBay.

8. The company does not do enough to convince leery potential customers

that Internet business is financially safe.

9. Longer transaction times, since many merchants will not receive payment

until a buyers check clears.

10. eBay is mainly a cash business.


IFE Matrix

Key Internal Factors Weights Rating

Weighted

Score

0.0 to 1.0 1 to 4

Internal Strengths

eBay is the most well known online auction company in the world 0.1 4 0.4

Strong auction community of loyal customers. 0.04 3 0.12

Excellent financial situation 0.1 3 0.3

Have a fair payment system that encourages merchants to list products. 0.03 3 0.09

Strong presence in strategic global markets 0.05 3 0.15

Experienced management team 0.1 4 0.4

eBay has very little inventory since they do not actually take position of

items sold on their site. 0.05 3 0.15

Strong customer service. 0.03 4 0.12

Percent of revenue in international markets increasing significantly. 0.02 3 0.06

0

Internal Weaknesses

Weak promotional and marketing activities 0.1 1 0.1

eBay does not pay dividends on their stock 0.01 2 0.02

Some customers feel the website is cluttered 0.02 1 0.02

eBay’s position in the business to business (B2B) market is weak. 0.03 1 0.03

eBay has very little debt, therefore the company is not taking advantage

of low interest rates to expand. 0.05 2 0.1

eBay has a higher tax rate since they do not take advantage of

depreciation as well as other companies. 0.1 1 0.1

The company relies too much on word of mouth advertising, assuming

everyone already knows about eBay. 0.1 1 0.1

The company does not do enough to convince leery potential customers

that Internet business is financially safe. 0.03 1 0.03

Longer transaction times, since many merchants will not receive

payment until a buyers check clears. 0.03 1 0.03

eBay is mainly a cash business 0.01 2 0.02

0

Totals 1 2.34


The Analysis


SWOT Matrix

7

SO Strategies WO Strategies

Expand operations into Asia

(S 1,2 &5; 0 1,3 & 8)

Start B2B operations in Asia (W

4,5,&10, O 4,7 & 9)

Increase advertising (1 1,6,7 & 10;

0 1,3,4,6 & 8)

ST Strategies WT Strategies

Lobby to keep Internet sales tax

free (S 1&3; T 1)

Increase Fraud Awareness (S 1,4

& 8; T 3)

Use extra Cash to educate all

customers that Internet

Transactions are safe (W 8; T

4&10)


SPACE Matrix

6 -1

2 -4

6 -3

5 -5

6 -6

5 -4

Financial Strength (FS)

Return on Investment (ROI)

Leverage

Liquidity

Environmental Stability (ES)

Rate of Inflation

Technological Changes

Price Elasticity of Demand

Working Capital

Cash Flow

Competitive Pressure

Barriers to Entry into Market

Environmental Stability (ES) Average Financial Strength (FS) Average

-1 5

-2 4

-2 4

-3 4

-5 6

-2.6 5

Competitive Advantage (CA) Industry Strength (IS)

Competitive Advantage (CA) Average Industry Strength (IS) Average

Customer Loyalty Rivalry Among Competitors

Technological know-how Resource Utilization

Control over Suppliers and Distributors Profit Potential

Market Share Growth Potential

Product Quality Financial Stability


SPACE Matrix

6

5

4

3

2

1

-6 -5 -4 -3 -2 -1 1 2 3 4 5 6

-1

-2

-3

-4

-5

-6

IS

ES

CA

FSConservative Aggressive

Defensive Competitive


IE Matrix

4.0 I II III

High

3.0 IV V VI

The EFE Total Medium eBay Weighted Scores

Domestic International

2.0 VII VIII IX

Low

1.0

Strong Average Weak 4.0 to 3.0 2.99 to 2.0 1.99 to 1.0

The Total IFE Weighted Scores

24%

76%

24%

76%

11


Grand Strategy Matrix

Rapid Market Growth

Quadrant II Quadrant I

Strong Competitive

Position

Slow Market Growth

Weak Competitive

Position

Quadrant III Quadrant IV

10


Suggestion/Recommendations

• New Strategies

– Expand to all countries of the world » Cost: $500,000.00-1,000,000.00(advertising)

– Advance in security of personal information » 1,000,000.00+

– Increase in Industry » N/A

– Increase revenues by capturing more customers » N/A

– Look into new pay system or create own (PayPal

only in 38 countries) » Millions


We believe that our continued profitability at historical levels will depend in large part on our ability to do the following:

• attract new users and keep existing users active on our websites;

• manage the costs of our business, including the costs associated with maintaining and developing our websites, customer support, transaction and chargeback rates, and international and product expansion;

• maintain sufficient transaction volume to attract buyers and sellers;

• increase the awareness of our brands; and

• provide our customers with superior community, customer support, and trading experiences.

eBay’s Thoughts

From 2003 annual report


EPS/EBIT Analysis

• $Amount Needed: $1,500

• Stock Price $45

• Tax Rate 80/162=40%

• Interest Rate 5%

• # Shares Outstanding 609

14


Decisions

Primary:

Expand aggressively into China

Secondary:

Increase business to business operations

Increase marketing campaigns in Asia


Implementation

Objectives:

Create a fully translated Chinese eBay

site

Increase sales by 35%

Increase number of registered users


Evaluation

Quarterly & Yearly Financial Statements

Annual strategic meetings of division

management and corporate management


2004 Financial Information

More than 104.8 million registered users

327.7 million items

More than $8 billion in gross merchandise sales

* All from first quarter of 2004


2005 Highlights


We have an incredible set of assets

http://www.skype.com/ http://www.paypal.com

http://www.ebay.com

http://www.skype.com/

http://www.paypal.com/

http://www.ebay.com/


Increased marketing


eBay International;


CHINA

Thanks for attention


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