A case study focusing on eBay strategy


This case study summarizes the strategic approach used by eBay to take advantage of increased consumer adoption of the Internet. We have created it as an update for students and professional using Dave Chaffey’s books which feature this case study.

eBay’s Mission

eBay describes its purpose as to ‘pioneer new communities around the world built on commerce, sustained by trust, and inspired by opportunity’. At the time of writing (in x )  eBay comprises three major businesses of the marketplace, PayPal and GSI:

  • 1. The eBay marketplaces (approximately 50% of net revenues in 2012). Originally only offering auctions, by 2012, the fixed price listing format accounted for approximately 66% of eBay’s gross merchandise volume, or GMV, with the auction-style format accounting for the remaining 34% of GMV.Marketplaces also include other sites like comparison siteShopping.com (event tickets). The mission for the core eBay business is to ‘create the world’s online marketplace’. eBay has also created vertical formats, such as Classifieds, Daily Deals, Fashion, Motors (vehicles, parts and accessories), and Electronics.
  • n 2007, eBay’s SEC filing noted that the success factors for this business for which eBay seeks to manage the functionality, safety, ease-of-use and reliability of the trading platform. In 2010 the strategic priorities had changed to trust, value, selection and convenience.
  • 2. PayPal (approximately 43% of net revenues in 2012). The mission is to ‘create the new global standard for online payments’.  Acquired in 2003 and is now a significant contributor to eBay revenue with the service incorporated in many other e-commerce sites.
  • 3. GSI (accounting for 7% of revenues in 2012) was acquired by eBay in June 2011, GSI is a provider of e-commerce and interactive marketing services including websites and fulfilment centres to enterprise clients that include some of the world’s leading brands and retailers covering merchandise categories, including apparel, sporting goods, toys & baby, health & beauty and home.

eBay’s Revenue model

The vast majority of eBay’s revenue is for the listing and commission on completed sales. For PayPal purchases an additional commission fee is charged.

  • The vast majority of eBay’s revenue is for the listing and commission on completed sales. For PayPal purchases an additional commission fee is charged.


The eBay marketplace is well known for its core service which enables sellers to list items for sale on an auction or fixed-price basis giving buyers the opportunity to bid for and purchase items of interest. Software tools are provided, particularly for frequent traders. Seller’s Assistant,and Selling Manager Pro, which help automate the selling process, plus the Shipping Calculator, Reporting tools, etc.

According to the SEC filing, eBay summarises the core messages to define its proposition as follows:

For buyers:

  • Trust
  • Value
  • Selection
  • Convenience.

In 2007, eBay introduced Neigbourhoods where groups can discuss brands and products they have a high involvement with.

For sellers:

  • Access to broad global markets
  • Efficient marketing and distribution
  • Opportunity to increase sales.

In January 2008, eBay announced significant changes to its marketplaces business in three major areas: fee structure, seller incentives and standards, and feedback. These changes have been controversial with some sellers, but are aimed at improving the quality of experience.






What to do to be a better manager?



Today most of the young graduates want to see themselves in good position in a reputed company and for that reason there is a huge demand for management education. Students after completing their management education get good job in leading companies and slowly they move forward in their career and run their organization successfully.

In order to run an organization smoothly one need to be a good manager and for that one needs to have good managerial skills. A manager should have certain qualities to control their company.

1. Select the best people

As a manager, you need to be good to your people in your team. One should select the best people from the very first because it will help one to get the best candidate for the job.

2. Be a motivator

At work place, people work because they are paid for that.They also work for the prestige and recognition. They work hard to impress their boss. So in order to improve their performance motivation is necessary and for that one need to find out what his employees are doing and how you can encourage them for their work

3. Build Your Team        

It is not always enough that people are encouraged to succeed at work. They need to work together as a team to achieve a company’s goal.

4. Be a Leader

You have built the best team from the best employee available. One need to motivate them to extract best performance from them Manager not only needs to motivate the team but they need to give a proper direction to the team so that they can perform well. And for this reason they need to have leadership qualities. So along with managerial skills one needs to develop leadership skills also.

5. Improve as a Communicator

The most important skill that a manager should have is the communication. If one has a good communication skill then one can communicate the vision and the mission of the company well. If the employees do not understand what one wants then they may not perform well. So one needs to communicate clearly.


6. Manage Time

A good manager should know how to manage time.

7. Improve Yourself

One should identify the areas in which one is weak and should start working on them to improve them.

Management is a skill that can be learned. One can improve as a manager if they work on those areas in which they are weak.


The Effect of Consumer Behaviour in Marketing of an Organization



Consumer behaviors control the type of marketing strategy that organizations such as small businesses employ, so they conduct studies to understand which strategies they will adopt and which will prove to be most effective. They need to know which their target audiences are and what their demands are and how they will react to their promotions.

Sales Forecasts

Organizations go through past records of consumer behaviors to determine future sales. Sales forecasts estimate the expected sales for a specific market during a particular time period. Different methods are used for forecasting sales, most of them are used in obtaining information directly from past buyers. Some examples of forecasting methods are quantitative and qualitative.

Research Surveys

Research surveys are conducted in order to study consumer behaviors. This process help the companies to understand what consumers want, as well as how they respond to advertising. They also help to find out the problems. Some examples of research surveys are new-product concept tests, product use tests and brand name recognition.

Internet Research

Companies, including small businesses, use the Internet to conduct much of their research. On the basis of their findings, organizations determine the right prices, attributes and sales promotions for their products. They also decide the optimal places and market conditions in which to sell.


MBA courses in Ahmedabad creates roadmap for the students



Apart from the cities like Bangalore, Mumbai & Kolkata, Ahmedabad has now become the most convenient place for the MBA aspirants to get ample opportunities to settle comfortably in their working fields. In fact Ahmedabad is now a pulpit of management study to generate well trained persons with high management aptitude to function well in the state run & private organizations throughout India.

Students doing management study in Ahmedabad are provided the best faculty guides in different AICTE approved B Schools to get themselves equipped with high communicative skills &decision making power.Lot of scopes has been widened in path of management in this city to provide up dated facilities to the management students to get them well placed in banks, multinational companies, financial institutions & reputed industries. Apart from placements various top business schools in Ahmedabad emphasizes on quality education which is most important for a student because in their career they will be applying all these knowledge in practical field.

Since most of the investors are showing interest to invest in different industries in Gujarat, this is creating more job opportunities for the students. Students who are completing their MBA degree successfully are getting jobs in all these leading companies in Ahmedabad. Management institutions in Ahmedabad thus provides standard education which fulfills students’ wants and desires.

MBA admission in Gujarat is increasing in recent times







Gujarat is now a well known name in AICTE approved MBA study. Students from all over the state are very keen to come in the professional field .Ahmedabad being the center point of the MBA course. Good opportunists are focused to the graduate students to choose management study to fulfill the demand of management personnel in quick expanding industry & trade in this state.

In this present scenario, most of the students are focused on doing professional courses or vocational courses in order to get good jobs in future. Not only that they are also want to get quality education which will help them to understand the current scenario and the market condition.

There are huge number of MBA institutes that are growing rapidly in Ahmedabad. Many well known institutes have come up which impart quality education as well as placements support to the students. These states have so many good names associated with the management courses and they are contributing much to cater professionals in management field in this state. Business is growing fast in the state & the students in the graduation level are welcomed to accept the opportunities to study MBA to place themselves in the corporate field.


7 Essential Skills Every MBA Grads Should Possess



Every MBA aspirant has some dream objective to fulfill. But in order to achieve that objective and dream, they need to develop certain skills. Though most the students who apply for management courses generally possess these qualities but there are some students who do not possess these qualities and for that they need to work upon them.

Once a student completes his management course successfully, they try their luck in the job market. But in this competitive market and situation, the main aim of any student is not only to get a job but to save that job. If one wants to go to the top in the industry then there are certain skills they to need develop.

The following are the skills.

  • Basic business knowledge

A management course should prepare students in a way so that they can understand the basic functional aspects of business; Students should have the basic knowledge in finance, marketing, economics, management etc.

·         Communication skills

A communication skill plays the key role in a business. If a student can’t communicate then he or she will not be able to excel in his work life. They should know how to express their ideas thoughts in a way that can influence the person

·         Ability to utilize information

As we know that information is very much important for any person. A student should have the skill to gather information from various sources and then they should be able to take decisions on the basis of that.

·         Social responsibility

In present situation it is very much essential for all the professionals to be aware of how their decisions affect individuals in their workplace. So they should know how to behave and what kind of decisions they need to take so that it can have a positive effect on the organization

  •   Teamwork

Teamwork means that one needs to work together, one should have the quality to accept new ideas and should have the ability to accept new ideas and should try to formulate those ideas.

  • Problem-solving

MBA graduates need to take the time to understand a situation, identify the issue and think strategically before solving a problem.

  • Leadership

 One should develop leadership skills because in an organization if you are in a good position then you should have some leadership skills to influence the workers.


These are the skills one should possesses before they start their career and should keep on improving those skills because in future that will help them to prosper in their worklife.






How Sony beat Microsoft using this Basic Marketing Mix Business Tool




Microsoft announces details of next release for Xbox One. Sony announces details of next release for PlayStation 4. Both new product descriptions had some unique features and benefits.  [Xbox will seem to appeal to a more broad audience with more entertainment options; PS4 will seem to be more powerful and more gamer-centric but will also include movie, music and video services that can stream across its platforms. Both console products are similar looking with Sony winning with an edge on its slightly more sleek, appealing design.]



Price can be a deciding factor. The release of the price for each console is a large component in how these companies’ target audiences reacted.

Xbox: $499
PS4:  $399


Both products will be sold through similar distribution channels (entertainment-related outlets) and available in time for the 2013 year-end (Christmas) holiday shopping.

This is where it gets interesting. Last February, Sony promoted a teaser of information letting people know the PS4 is forthcoming.  In May, Microsoft promotes more than just a teaser, offering product details (with news about limiting game usage) that create negative rumours and press. This simmers for a month, without any meaningful Microsoft response, then people later find out the rumours are true. Both companies officially released their new product details at a key industry event (E3 press conferences in Los Angeles, CA). By the way, Sony held its press conference nine hours following the Microsoft press conference.

Xbox: New games and features with limited usage. [Users will need to connect to the internet every 24 hours for games to work (limits offline gaming time). User accounts can be used on other consoles to access libraries, though only with an hourly internet check. Also, new limits in how users can share games with friends and, responding to privacy concerns, its Kinect sensor will limit how it records conversations during play.]


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