That makes eBay the largest marketplace online, having a great power over other online retailers. Being a pioneer in online auctions, eBay had no competition and currently has only few strong direct competitors. In the beginning, eBay had to invest heavily to gain IT and customer relationship management CRM knowledge and skills, but since then, used its skills to serve over million users and to create the largest online marketplace with little additional costs.
Introduction Strategic management is the process of systematic analysis of factors related to the external environment competitors and customers and the internal environment organisation itself in order to ensure that optimum management practices are maintained Ansoff, The primary purpose of strategic management is to attain an alignment between strategic priorities and corporate policies.
It is an American multinational corporation and e-commerce company. It uses internet to provide business-to customer and customer-to-customer sales services. It is a multi-billion dollar company with offices across the global and headquarters in San Jose, California, United States. It comprises of three different business units with their own distinct brands eBay Inc, Environmental Analysis for eBay Environmental analysis is defined as the systematic process of identifying various environmental factors in a business, studying their possible impacts and formulating strategies in order to benefit from them Freeman, Figure below shows the different components of each part.
Various strategic management tools can be used to perform environmental analysis for ebay. It the strengths and opportunities combined together outnumbers weaknesses and threats then the outcome is considered positive and predicts future growth.
Swot analysis for ebay is shown below. Strengths Giant online marketplace: Present in 37 countries Economies of Scale: Very less investment with high earning Strong business model: Acts as an intermediate between sellers and buyers. A unique business model that serves as a competitive advantage Brand reputation: A multi billion brand with huge brand loyalty Strong payment methods: Uses PayPal which is considered a secure and convenient payment system Localisation: Displays in local languages and is adapted to local product offerings High Fees: Market research reveals that eBay charges comparatively high fees when compared to other online service providers.
Sellers are hardly able to make profits. Lacks strong future growth strategies Opportunities Threats Growth of online market: Reports indicate remarkable growth in online market. It is an emerging market and provides ample opportunities. Countries like India and China present good growth opportunities Change in customer preference: Customers today have less time thus prefer to use online marketplace which helps saving time.
Impact of social media: Skype deal opens more opportunities Online Security: As the model is completely IT bases its always open to security threats Increased Competition: High competition from big brands like Amazon and new entrants Changing economies and exchange rate: Changes in economical conditions affects exchange rates which in turn affects eBay.
Other IT related issues like server crash, hacking etc. Made by Student SWOT analysis for eBay predicts high future growth however they have to work on their future strategies in order to align with changing business needs. PEST analysis for eBay is shown below: However E-commerce as of now is not that much affected by national governments Adler, They are greatly affected by taxation laws, employment laws, security regulations related to online payments etc Armstrong, Like all other businesses eBay is greatly affected by the overall world economical conditions.
They are affected by economical factors like inflation, unemployment, rate of interest, currency fluctuation and changes in taxes Marketing Mix, Researches reveal that there has been a significant rise in the number of consumers preferring online retailing as compared to offline retailing Armstrong, eBay SWOT Analysis Posted on September 21, by John Dudovskiy SWOT is an acronym for strengths, weaknesses, opportunities and threats related to organizations.
In , EBay’s first step in China is acquiring 33% interest in EachNet by investing $30 million In , eBay fully acquired EachNet for $ million.
In , eBay acquired Skype to expand into the online communication market.
impossible to challenge. As eBay CEO Meg Whitman puts it, “If torosgazete.com goes down, you can still go to Circuit City” but should eBay crash there will be no other place to go.
The current substitutes for eBay offer much fewer buyers and products for sale. This is why eBay is successful in maintaining 80% of the online-auction market. eBay (EBAY) SWOT Analysis Profile eBay, Inc., provides online marketplaces for the sale of goods and services.
eBay provides payment systems and other necessary services to facilitate accurate and robust commerce via its online auction system. eBay has a community of individual, commercial and governmental customers who buy and .
CASE ANALYSIS REPORT EBAY’S STRATEGY IN CHINA: ALLIANCE OR ACQUISITION Step 1. Situation Audit: SWOT analysis: Strength: 1.
Due to its strong online nature it could handle number of transaction. 2.
|Introduction||These earnings shows how eBay performed well and will likely continue to do so in the future. There are over million users on eBay.|
|eBay SWOT Analysis||This can be done by raking success based on customer reviews, customer experience, marketing strategies, and much more.|
eBay had good relationship with international partners%(6). Swot analysis is a strategic management tool that helps analysing a company’s strengths, weaknesses, opportunities and threats (Pahl & Richter, ). It the strengths and opportunities combined together outnumbers weaknesses and threats then the outcome is considered positive and predicts future growth/5(14K).