Ebay Inc.: Connecting Buyers and Sellers Globally

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EBAY INC.

Connecting Buyers and Sellers Globally

Analysis by WiseFex Consulting


COMPANY OVERVIEW
—Our company in 2020 grew exponentially, and
we've never been more proud of our people.

EBAY INC. IS AN INTERNATIONAL E-COMMERCE COMPANY BASED OUT OF SAN JOSE FOUNDED BY PIERRE OMIDYAR IN 1995. THEIR BUSINESS MODEL IS
BASED ON THE C-2-C (CUSTOMER TO CUSTOMER) AND B-2-B (BUSINESS TO BUSINESS)MODEL

There are 1.7 billion listings on eBay Market place with 185 million buyers and 19 million-sellers as of writing this report, and
over 1500 cities with eBay classified listings according to Ebay Inc
SWOT ANALYSIS
SWOT is a planning technique
which is used to access four
aspects of a business i.e.,
strengths, weaknesses,
opportunities
PESTEL ANALYSIS

PESTEL is a framework used to


recognize external environmental
factors which are Political,
Economic, Social, Technological,
Environmental, and Legal.
ORGANIZATIONAL
STRUCTURE
eBay has a very efficient organizational structure which is good in holding the business in the current
scenario. Just because of this, eBay's business model was successful to date. However, to survive in the
long run, they need to add more departmentalization like a business and more effective geographic
divisions.
Board of members-
CEO-"On eBay, I sold a Hammond
B-3 organ that I’ve owned since I
Paul S. Pressler : Chair of the Board
was a teenager to a church. The Kathleen Mitic : Chair of Corporate Governance &
day it was delivered, the pastor
sent me a video of his organist
Nominating Committee
playing it, and I joked with him Anthony J. Bates : Board Member
that it never sounded that good
when I played it!" Adriane M. Brown : Board Member
Jamie lannone Diana Farrell : Board Member
FINANCIAL ANALYSIS
Liquidity Ratio
2.5
2.5

2
2

1.5
1.5

1
1

0.5
0.5

0
0 2016 2017 2018 2019 2020
2016 2017 2018 2019 2020

CURRENT RATIO QUICK RATIO


ACTIVITY RATIOS

25 2 0.6

20
1.5

0.4
15

10
0.2

0.5
5

0 0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

ACCOUNTS RECEIVABLE INVENTORY TURNOVER TOTAL ASSET


TURNOVER TURNOVER
LEVERAGE RATIO

1 2.5

2
0.75

1.5

0.5

0.25
0.5

0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

DEBT RATIO LONG-TERM DEBT TO


OWNERS EQUITY RATIO
PROFITABILITY RATIO

80 40 200

60 30 150

40 20 100

20 10 50

0 0 0

-20 -10 -50


2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

RETURN ON SALES RETURN ON ASSETS RETURN ON EQUITY


MARKETING ESSENTIALS
—We developed relationships with new
customers every month in various key
demographics

MARKET SEGMENT GLOBAL PRESENCE PROMOTIONAL STRATEGIES


eBay's products in the marketing mix eBay has developed a great presence in eBay uses multiple means to promote
are its website and the app. Their the market in over thirty nations itself and for establishing better brand
Money Back Guaranteed program has globally. Being an online retailer, the recognition. It uses online ads, tv,
established trust in their consumers company is there where a user is. It is billboards, print etc. to increase its
by taking care of returns, shipping etc. accessible on all gadgets and operating brand awareness in the market. They
systems. even went for an alteration in their logo
around a decade ago.
STRATEGIC DIRECTION AND
CORPRATE OUTLOOK
—We hit all of our key and strategic goals this year,
and we're proud of our work.

MISSION STATEMENT VISION STATEMENT LONG TERM OBJECTIVES


eBay’s Mission, “a worldwide
platform on which anyone can trade
eBay’s vision statement is “to be
the world’s favourite destination for
AND KEY STRATEGIES
anything.” It depicts that eBay is a discovering great value and unique eBay overall aims to increase the
worldwide auction website. It also selection.” The company considers gross merchandise volume and net
gives an overview of the company’s this vision statement as its mission revenues from the eBay
nature and its strategies. statement. But based on the above marketplace. These are the
definitions of vision statement and strategies focusing on:
mission statements, its intended Acquisition
mission statement is technically a Activation
vision statement. Activity
CNN BUSINESS THE GLOBE & MAIL
The 12-month analysis by CNN The Globe and Mail. According to
Business. According to them, eBay their estimations and predictions,
Inc has a target median of $67.00 the average earning per share

ANALYST FORECAST
would be $3.29, with a high
(+11.04%) with a high estimate of
estimate of $3.56 and a lower
$84.00 (+39.2%) and a low
estimate of $2.79. The stock of
estimate of $55.00 (-8.8%). we
eBay Inc. should be on hold and
should hold and buy stocks in eBay
moderate buy
Inc for the next 12 months.

NASDAQ MARKET WATCH WALL STREET ZEN


Nasdaq provided 12-month price The Market watch. According to Wall Street zen provided 12-month
targets for eBay Inc. According to their estimations and predictions, price targets for eBay Inc.
Nasdaq, the average price target is the average earning per share According to them, the average
$70.59 with a high estimate of $84 would be $3.41, with a high price target is $65.85 with a high
and a low estimate of $54; based estimate of $3.54 and a lower estimate of $80 and a low estimate
on this, Nasdaq recommends estimate of $3.34. The stock of of $45; based on this, they strongly
buying shares of eBay Inc. eBay Inc. should be on hold. recommend buying shares of eBay
Inc.
CORPORATE eBay Inc. has a business-centred corporate social responsibility
methodology. For instance, the procedure puts "opportunity for all" as
an approach to satisfy the interests of merchants, particularly those

SOCIAL
from low-pay networks. In this CSR approach, the organization fulfills
the interests of partners most straightforwardly connected to its
global web-based business: merchants. In any case, maintainability
and green administration are likewise critical in the organization's
RESPONSIBILITY corporate obligation endeavours. While different projects and
activities are remembered for such endeavors
BACKGROUND ONLINE CULTURE
eBay was started in the 1990s.One Pandemic brought a change in the
of the oldest online C-2-C shopping shopping habits of people and

RECOMMENDATION
destinations. people started moving towards
online platforms which proved
beneficial for the company.

GLOBAL PLANS STATISTICS CONCLUSION


The company's plan is to expand its Revenue has increased by almost We have reached a conclusion that
functioning globally in China, along 18% from 2019. Active annual the company's stock price will rise
with further enablement for the buyers also rose to 5%. Moreover, for the next year and moderate
consumers in U.K. , Germany. its current ratio is 1.79 which is investment in stock is
good and depicts the company is recommended.
stable.

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