FT.com : Ebay's Wishful VoIP Thinking

IanFogg | February 08, 2006, 06:27 PM

The FT reports that Ebay sees Google, Yahoo, Amazon becoming less competitive with them :

The four dominant internet groups - Google, Yahoo, eBay and Amazon - will increasingly focus on their core activities rather than compete with each other head-on, according to Meg Whitman, eBay's chief executive.

"I think we will end up specialising," she told the FT in an interview on Tuesday. "We have specialised in e-commerce, payment and voice communication. Google stands for search, Yahoo largely stands for content - so I think we may on the fringe compete, but I suspect that over time the businesses will become more specialised."

Who's going to break the news to Google!

End up? Has the FT misunderstood? Is Meg Whitman speculating about an end game that is years into the future?

Or, is Ebay already preparing the financial community for a re-positioning of their expensive VoIP acquisition, Skype, out from the headlights of 'the dominant Internet groups'?

Certainly for now, on VoIP, this is highly wishful thinking. All of these companies have VoIP products competitive with Ebay's Skype. They're all adding new features and improving their ease of use too. Plus, the article fails to mention MSN / Microsoft at all ,and so completely ignores Windows Live Messenger and its impacts.

In the wider perspective it's even odder. These companies cover enormous ground including commerce, content, communication, advertising, search etc. with numerous Jupiter analysts researching each area. However, my understanding, to put words in everyone else's mouth here is that there is serious competitive overlap in numerous other areas, such as Yahoo! being a major auction player in Japan; Google's Froogle and classifieds stepping on Ebay's toes; all of them targeting the youthful demographics that Skype's latest avatars and ringtones appeal to.

For the next few years, Ebay will be competing with these companies whether they like it or not.

Clients - send us inquiries and we'll set up calls with a selection of analysts to cover off whichever aspects of this are of interest. Those interested in VoIP or Skype, read this Skype case study.