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Could eBay consider an even more radical move similar
                    to Amazon?
                                            Min Woo
                                            Woo Suk
                                            Clement
Amazon ebay BM
 be Earths most customer-centric               Pioneer new communities around
company for three primary customer sets :
   customers, sellers, and developers      GOAL   world built on commerce Sustained
                                                   by trust / Inspired by Opportunity
Amazon                                              eBay                      Notably,
                                                                                                                                         CAGR
               .Revenue                                        32%                                              15%                      of 10%
  .Operating Income                                            27%                                              14%                      Per year
     .Net Income                                               26%                                              21%
      Share Price
                                                               37%                                               6%
   CAGR (2001 - 2010)


GMV in USA
(Bilion USD)
                                     Amazon                    eBay
 35
                                                                                                  32
 30
                                                    25                  25          25.2
 25                                                                                               26
                                                                                           24.5
 20



                                                                                                          14                           82
                                                                                17.5
                                         18
 15
                                                                        14
                                                                12
 10                   10
               7                                         7.5
  5                           4.8    5        5.2
               3.5    3.7
  0
                                                                                                       [Source: Cowen and Company (2011), Investment
        2001       2002    2003   2004   2005   2006       2007      2008    2009   2010    2011
                                                                                                       Controversies Series : Amazon.com]
1995   1996   2002   2006   2007
1995          1996                                          2002                                  2006        2007
Amazon Webstore Service
 觜れ襯                                                                        伎




            GMV in USA
            (Bilion USD)
                                                 Amazon                    eBay
             35
                                                                                                              32
             30
                                                                25                  25          25.2
             25                                                                                               26
                                                                                                       24.5
             20
                                                                                            17.5
                                                     18
             15
                                                                                    14
                                                                            12
             10                   10
                           7                                         7.5
              5                           4.8    5        5.2
                           3.5    3.7
              0
                    2001       2002    2003   2004   2005   2006       2007      2008    2009   2010    2011
95    96   '97   99   2002    2006 2007 2010        get big fast 
                                                  .

96
 99
2002

2006                                               Enhancing Customer Convenience 
2007

                                                       Fulfillment by Amazon(FBA) 
2011
       Full suite of service
95    96   '97   99      2002      2006 2007 2010         get big fast 
                                                       .
              Contents
96          Distribution
                                                   Kindle                  Eco-system
 99                        Market Place
                                                                           As Platform
2002    Tech & Infra

2006                                                    Enhancing Customer Convenience 
2007

                     Move into IT Service by Amazon(FBA) 
                                      Fulfillment
2011
       Full suite of(SaaS, IaaS)
                     service
* Expanding into Fixed-Price            *Adding Buy-It-Now Features(In 2000) *Storefront
  Sales (In 2000) : Minimize bargain time : Immediate purchase available       : Individual online store

           Activation of C2C Market transaction, expansion of other internet transactions
Enablers for Buy
                    eBay
                  Trading
                                             (Vertical Expansion)
Seller           Community    Buyer
                   system




Expansion of Buy Platform
(Horizontal Expansion)
                              Enablers for  Mobile
                              (Move into M-commerce)
Sellers
Sellers

          e-Shop   e-Shop


Custom                       Buyer
  er
R艶壊看顎姻界艶          Open
  -Driven            -Driven
          Value Proposition




                                  System becomes more efficient with
Trend-                           growth and enhancement
 Driven
                      Customer   Jeff Bezos emphasized fast growth before
                       -Driven    competitors realize what they are striving
                                  for based on this model so that it becomes
                                  difficult for competitors to catch up later on
Amazon ebay BM
Amazon ebay BM
Amazon ebay BM
Amazon ebay BM
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Amazon ebay BM

  • 1. Could eBay consider an even more radical move similar to Amazon? Min Woo Woo Suk Clement
  • 3. be Earths most customer-centric Pioneer new communities around company for three primary customer sets : customers, sellers, and developers GOAL world built on commerce Sustained by trust / Inspired by Opportunity
  • 4. Amazon eBay Notably, CAGR .Revenue 32% 15% of 10% .Operating Income 27% 14% Per year .Net Income 26% 21% Share Price 37% 6% CAGR (2001 - 2010) GMV in USA (Bilion USD) Amazon eBay 35 32 30 25 25 25.2 25 26 24.5 20 14 82 17.5 18 15 14 12 10 10 7 7.5 5 4.8 5 5.2 3.5 3.7 0 [Source: Cowen and Company (2011), Investment 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Controversies Series : Amazon.com]
  • 5. 1995 1996 2002 2006 2007
  • 6. 1995 1996 2002 2006 2007 Amazon Webstore Service 觜れ襯 伎 GMV in USA (Bilion USD) Amazon eBay 35 32 30 25 25 25.2 25 26 24.5 20 17.5 18 15 14 12 10 10 7 7.5 5 4.8 5 5.2 3.5 3.7 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  • 7. 95 96 '97 99 2002 2006 2007 2010 get big fast . 96 99 2002 2006 Enhancing Customer Convenience 2007 Fulfillment by Amazon(FBA) 2011 Full suite of service
  • 8. 95 96 '97 99 2002 2006 2007 2010 get big fast . Contents 96 Distribution Kindle Eco-system 99 Market Place As Platform 2002 Tech & Infra 2006 Enhancing Customer Convenience 2007 Move into IT Service by Amazon(FBA) Fulfillment 2011 Full suite of(SaaS, IaaS) service
  • 9. * Expanding into Fixed-Price *Adding Buy-It-Now Features(In 2000) *Storefront Sales (In 2000) : Minimize bargain time : Immediate purchase available : Individual online store Activation of C2C Market transaction, expansion of other internet transactions
  • 10. Enablers for Buy eBay Trading (Vertical Expansion) Seller Community Buyer system Expansion of Buy Platform (Horizontal Expansion) Enablers for Mobile (Move into M-commerce)
  • 11. Sellers Sellers e-Shop e-Shop Custom Buyer er
  • 12. R艶壊看顎姻界艶 Open -Driven -Driven Value Proposition System becomes more efficient with Trend- growth and enhancement Driven Customer Jeff Bezos emphasized fast growth before -Driven competitors realize what they are striving for based on this model so that it becomes difficult for competitors to catch up later on