.

1. I. Annual objectives and policies for
the company
Based on the new long- term strategy for EBay, we recommence some more details to keep in
track with the strategy
A. Annual objectives:
- Increase 1 % of market share per year
- Increase up to 10% of total revenue and decrease 2% cost for inventory and
marketing
- Increase 10% the number of registers and limit the number of virtual customers
- Establish at least two representative offices in nuclear sites such as Shanghai,
Guangzhou, Shenzhen… and the target cities in Hong Kong
- Expand the new categories
B. New policies for new strategy:
- Rewards for staffs that reach high performance at work and do not absence any
workdays.
- Every year, the Head of all the Department has to have a special training with
purposes are improving skills and qualifications and update some new
technologies.
- Two weeks training for current staff and one month training for the new stuff.
Employees will be taught English if they do not know and depending on the
department, they will be required about other languages.
- Employees allowed to use their personal e-mail and account to buy items on
eBay website
- Every month, the monitor of eBay has to have an unscheduled inspection
II. COMPETITIVE PROFILE MATRIX
A. Matrix
 4 – means a major strength

2.  3 – minor strength
 2 – minor weakness
 1 – major weakness
CPM eBay Taobao Yahoo
Critical Success Factors Weight Rating Weight
Score
Rating Weight
Score
Rating Weight
Score
Market Share 0.18 1 0.18 5 0.9 2 0.36
Profit Margin 0.08 2 0.16 4 0.32 3 0.18
Variety of Product 0.10 5 0.5 4 0.4 3 0.3
Customer Satisfaction 0.18 2 0.36 5 0.9 3 0.54
Customer Service 0.04 3 0.12 4 0.16 3 0.12
Price competitiveness 0.05 3 0.15 5 0.25 4 0.2
Advertising 0.06 2 0.12 4 0.24 5 0.3
Global Expansion 0.1 5 0.5 2 0.2 4 0.4
Supplier network 0.06 4 0.24 3 0.18 4 0.24
Software Technology 0.05 4 0.2 3 0.2 5 0.25
Brand reputation 0.1 2 0.2 5 0.5 4 0.4
Total 1 2.73 4.25
strongest
3.29

3. B. Analysis
From the CPM analysis we can see that eBay’s CPM value is 2.73 which is the weakest company
compares to the other two in this industry although eBay is the World's largest online auction
website and its aggressive expansion. They just have a few critical success factors such as variety
of product, global expansion, supplier network and software technologies, which are ranked
highest, may lead the China online market. The rest of them, expected customer service and price
competitiveness are in the average are underestimated because they have not enough competitive
in the market. On the other hand, Taobao is the strongest player in this industry because it has the
highest value score in CPM analysis (4.25). 8 out of 11 factors are dominated by Taobao, 3 of
them: market share (80% in market), customer satisfaction (77%), brand reputation is the most
significant factors that help Taobao success in China industry. The other reason for that may
because Taobao is under the management of Alibaba Group- a huge domestic organization, so
they have more benefits and supports from China government and domestic consumption. The
other competitor- Yahoo is in the middle, which is neither so prominent nor overshadowed.
Based on some data from two main competitors, eBay should create their strategies not only to
promote their strengths and it also changes their weakness in order to improve their ratings in the
industry.
III. INTERNAL FACTOR
EVALUATION (IFE) MATRIX
A. Matrix
 Major weakness is represented by 1.0
 Minor weakness is represented by 2.0
 Minor strength represented by 3.0
 Strength in average represented by 4.0
 Major strength represented by 5.0
 Total score < 2.75 is weak, >2.75 is high

4. Table 1: Internal Factor Evaluation Matrix (IFE)
STRENGHTS WEIGHT RATING WEIGHTED
B. Analysis
SCORE
World's largest online auction website and
aggressive expansion
0.15 5 0.75
Provides variety of products
0.10 4 0.4
The unique of business model
0.05 3 0.15
A strong online transaction (PayPal)
0.15 4 0.6
Feedback process
0.05 3 0.15
WEAKNESSES WEIGHT RATING WEIGHTED
SCORE
Adapt to local needs and customer satisfact ion
0.2 1 0.2
Build a community effect in the country
0.05 2 0.1
Gain market share due to rising costs and
intense competition
0.05 1 0.05
Forming a partnership with former rival
0.2 1 0.2
TOTALS 1.00 2.6 ( < 2.75
=> weak)

5. The total weighted score value is 2.60 ( lower than the average point -2.75) which means eBay
internal position is weak but not worst because the difference between the points is not high. The
two major strengths of eBay, which are recognized by the industry, are the World's largest online
auction website and aggressive expansion; a strong online transaction (PayPal). Two of them
account for a large portion in success of the company (total 30%) and are ranked highest.
EBay have 14 international websites and operated in more than 30 countries that 142 million it
potential customers can buy and sell their products internationally.
Then, they all have to pay through PayPal- that makes it become the strongest online transaction
around the world. Over the third of eBay revenue comes from PayPal. The money that eBay make
through PayPal comes through transaction fees form sellers and people who use it to transfer
money. Therefore, eBay should expand PayPal into international market would enable eBay to
provide a simply way to conduct transaction across market borders. It company also consider the
growth potential developing markets would attract many new customers, and thus increasing
eBay’s revenue.
However, their strengths are not strong enough to fill their weaknesses. The most critical weakness
of eBay is the adaption to local needs and customer satisfaction, which account for the largest
share of internal factor (20%), after that they company has two more weaknesses – gain the market
share and forming the partnership with former rival . Fail to adapt customer satisfaction as well as
underestimate the important of marketing that lead eBay lose their market in China.
Although, they cooperated with Xiu.com, announced a joint-venture with PChome Online and
Tom Online Ic and acquired Eachnet, all of them didn’t help eBay to overcome its knots. The
reason is all of the companies that eBay created the partnership are too small, whereas their
competitor is Alibaba group- which have 80% market share and the organization also make a
strategic alliance with Yahoo- the multinational firms which have a few reputation in the world.
IV. Financial Ratio
FINANCIAL RATIO ANALYSIS
Period Ending
Dec 31 ,2013
EBay Alibaba Industry Summary Analysis

6. Short -term solvency, or liquidity, ratios
Current ratio
1,84 1,80 N/A
Based on this data, we can see that both eBay
and Alibaba have good advantage in pay off
their current liabilities and perform better
than its industry. Therefore, Alibaba seems
to be stronger than eBay because they have
higher potential in covering its debt which is
faster than eBay in overall.
 Alibaba has better advantages than
eBay and the industry
Quick ratio
1,74 1,80 0,64
Cash ratio
0,36 1,27 N/A