EBay Places a Winning Bid on Whitman

(TOPIC AREA: Net People and Places)

EBay.com, the world's largest online flea market credits most of its success to CEO Meg Whitman. Although Whihtman is quick to name Pierre M. Omidyar as creator of the site, her no-nonsense attitude has enabled eBay to emerge as one of the few successful dot-com startups still in existence. (1) Today the online community includes 49.7 million registered users, with transactions estimated to reach $9 billion this year. Whitman's five percent in the company, estimated at $900 million, makes her the second most powerful woman in business. (2)


At first Whitman was skeptical of what Omidyar's original "Auction Web" site could offer her in terms of a career. By applying the knowledge she gained during her time at Procter & Gamble, Disney, Hasbro and other big name companies, Whitman was able to expand eBay from a trading post for Beanie Babies into the worldwide auction house it is today, with auto sales totaling over $1 billion alone. (3) She describes the similarities between traditional sales and Internet sales by saying, "It's about the financial discipline of the bottom line, understanding your customers, segmenting your customers by their needs, and building a world-class management team." (4)


In spite of all her success, Whitman continues to apply eBay's understated ethics to all aspects of her life. She values family first, works out of a traditional cubicle and lives for bottom-line results. Whitman is also known for her willingness to walk away from strategic moves that don't pan out. Specifically, she pulled eBay out of Japan after Yahoo captured the market, and in 2000 she walked away from a Yahoo buyout that threatened to jeopardize the eBay community. (3) As eBay's revenues continue to grow at a rate of 66 percent per year, the company makes plans to expand its overseas markets. (4) Under Whitman's leadership for at least the next five years, eBay will continue to make strides in the dot-com world.

 

NOTES
(1) "Q&A: Meg Whitman: eBay," Business Week, 31 May 1999, p.134. Also Available [Online]: LEXIS-NEXIS Academic [Accessed: 12 September, 2002].
(2) Christa D'Souza, "EBay CEO was Hesitant Dot-Com Player: Meg Whitman Became Head of Online Auction Broker for Everything from Beanie Babies to Glass Eyes," Vancouver Sun, 15 August 2002, p.F6. Also Available [Online]: LEXIS-NEXIS Academic [Accessed: 13 September, 2002].
(3) Saul Hansell, "Meg Whitman and eBay, Net Survivors," The New York Times, 5 May 2002, sec.3, p.1. Also Available [Online]: LEXIS-NEXIS Academic [Accessed: 13 September, 2002].
(4) "A Talk with Meg Whitman," Business Week, 19 March 2001, p.98. Also Available [Online]: LEXIS-NEXIS Academic [Accessed: 13 September, 2002].

 

WEBSITES

 

Title of Web Page: From Beanie Babies to a bigger, better eBay

Web Address: http://news.com.com/1200-1120-959420.html

News item detailing Whitman's response to pressure and contributions to eBay's success. Includes a detailed report card of Whitman's role as CEO.

Source of Web Site: CNet News

Title of Web Page: CEO Whitman looks overseas, ponders peer-to-peer

Web Address: http://news.com.com/2008-1082-244621.html

Question and answer session with Whitman about her plans for the future of eBay.

Source of Web Site: CNet News

Title of Web Page: How can a dot-com be this hot?

Web Address: http://www.fortune.com/indexw.jhtml?channel=artcol.jhtml&doc_id=205936

News item describing how Meg Whitman's personality and business outlook help shape the success of eBay.

Source of Web Site: Fortune Inc.

Title of Web Page: Company Overview

Web Address: http://pages.ebay.com/community/aboutebay/overview/index.html

Profile of eBay, including the company's mission, target market and major services. This site links to backgrounds of management.

Source of Web Site: eBay Inc.