eBay case FINAL - S S W t O r T e A n n g a t l h y s s F i...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 eBay Case Tim May March 4, 2012 S t r e n g t h s F
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Executive Summary In order to continue to maintain their growth rate and position within the online e-commerce market, it is essential that eBay acts upon the issues which their company is currently facing. The eBay team has put in much time and effort so as to create a competitive edge against their major competitors such as Amazon.com. EBay has developed a number of strategies to deal with the great competition in the e- commerce market in addition to retaining their leadership position. They have chosen to expand themselves by purchasing companies such as shopping.com—a large online fixed-price shopping website—as well as StubHub and Half.com. This method ensures eBay an upper hand with resources to provide potential consumers with greater service. Despite its rivalries, eBay has moved into contract with Google and Yahoo promising both parties with exclusive advertising rights on their sites, in return getting the endorsement of Paypal— eBay's payment sector powerhouse. Furthermore, eBay is trying to enter and establish its name across other geographical regions, such as the blooming markets of Asia. They are doing so by setting up more domains to be able to compete. Ebay has many problems looming in its future, and with dwindling stock price and definite layoffs, many analysts thinks eBay faces a slippery slop back to the top.
Background image of page 2
3 Background eBay was founded in 1995 and has grown into a multi-billion dollar corporation. The online auction industry has grown dramatically since the 1990s. Like its competitors, eBay does not produce any goods. eBay’s business model is set up to make money from the movement of information through the Internet. It does not produce a tangible product but provides the service of joining independent sellers and buyers together. It makes its revenue by charging sellers commissions and fees. eBay has been very successful since the day it started. This paper contains an analysis of the online auction industry with a focus on eBay. Porter's Five Forces & Analysis Porters' Competitive Forces Model identifies five competitive forces that threaten a firm. These include: traditional competitors, new market entrants, substitute goods and services, suppliers and customers. The traditional competitors of eBay include: Amazon, Google, Yahoo!, Craigslist, Overstock and other major search engines like mamma.com and ask.com. These competitors are a constant threat to eBay. Entry into this industry is very easy because the internet is so widely used nowadays and it is basically free to start up an online auction website. Substitute goods and services include products provided by stores like Wal-mart, Target etc. These stores are also a threat to eBay because once stores like this have lower prices for goods; in my opinion, most buyers would rather buy from stores than online because of the price differential. In the case of suppliers, eBay has a lot of
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

eBay case FINAL - S S W t O r T e A n n g a t l h y s s F i...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online