The company has successfully acquired many companies to extend its services offering and should continue adding new services through mergers and acquisitions. Another macro-environmental factor relevant in this external analysis is the rising competition linked to technological innovation.
In addition, they used technology to improve the performance of the site and to avoid intruders from Ebay general environmental analysis into the site. The company has its IT and CRM systems in place already and could easily stake out a market share from Amazon and other online retailers.
Also the security issue is a very strong reason that they succeed. Each marketplace is using local language and is adapted to local product offerings. For certain charges sellers can get their products advertised on the front page of eBay, or on the top of search result pages. Buyers with bargaining power in the industry would consist of, ironically enough, the sellers on eBay.
But eBay has established a very strong name and market share. This question might also be asked in a different manner: The main types of fraud in this industry include paying for a product and never receiving it, receiving fake or bootleg items, or sellers receiving payment from a falsified account and sending the item to later realize the payment was fraudulent.
Nature of rivalry- Rivalry continues to become more and more intense as more competitors attempt to enter the industry.
They do pay advertising to other popular internet sites to display ads for eBay. It also involves some excitement for the buyer. Is that their website will become out dated.
Inin order to gain media attention, a story was fabricated by a public relations manager that went along the lines as saying Omidyar began eBay to help his then fiance sell Pez candy dispensers. Each highlights proactive moves to out compete rivals, and the strategies used to build competitive advantage.
Strategic factors necessary for a firm to be successful in the industry Strategic factors necessary for a firm to be successful would primarily be in the field of marketing due to the abundance of firms in the industry.
Companies targeting an online audience must keep in mind that when making a sale to residents of different locations, there might be different tax laws and codes. I think the major two are low-cost provider and broad differentiation strategy. SafeHarbor is a 24 hour a day seven day a week, via e-mail or live-real time via chat room, customer support department.
Either way is an incentive for innovation in the online auction industry.
This technological external factor adds challenges in other fronts for competition, such as through mobile shopping. New customers gained from acquired company Inheritance of niche markets. Therefore with all online auction providers, trust is a huge issue due to a certain period of down time between payment and receiving the goods or services7.
EBay does not have anything to do on this situation. Bargain hunters are the people who will spend all day looking for the deal, while professional buyers are the people who seek unique items but they use to go to stores to buy. Acquisition of other companies: This situation has just been brought to the attention of the business world by the Financial Accounting Standards Board.
If is very easy for another company to get started. On the global front, 22 countries outside the U. Listed below are the specialties developed: Broadening the existing trading platform To broaden its platform, eBay developed specialty sites. They will send an automated invoice on behalf of the seller to the winners of auctions describing payment methods that the seller accepts.
GAAP pro forma earnings are the earnings of the company when the earnings are measured according to some method that an accounting standards-setting body designed. With the increase in life expectancy, industries can expect each individual to consume their products longer and expect more revenue er person.
Degree of vertical integration- As time passes, and eBay continues to dominate the market more each day, the degree of vertical integration is growing. There are still lots of markets nationally that have yet to be tapped into.
The sellers are the ones paying the listing fees, insertion fees, and commission fees.
Using these two software tools, the models described in the book can be readily accessed and used in classroom or professional applications as demonstrated in the book.Payment system. eBay uses PayPal, its own payment system, to proceed nearly all of the payments going from eBay’s marketplace. From eBay’s perspective, such tight integration has the benefits of more fees collected (PayPal takes transaction fees from the businesses) and tighter control over buyer’s shopping experience.
teachereducationexchange.com is a platform for academics to share research papers. A Complete Analysis of the External Environment and Ebay; variety of global marketplaces.
31 _The relative position of eBay in the industry7-_ Company Profile**- Organization & General Management31 Organizational Structure- Auction market is the organizational structure used An auction market is when buyers and sellers confront.
Find great deals on eBay for environmental. Shop with confidence. Environmental analysis is a strategic tool. It is a process to identify all the external and internal elements, which can affect the organization’s performance. External Environmental Analysis 1 Lecture Topics • Purpose of External Environmental Analysis • Gathering Information for External Environmental Analysis • General Environment • Competitive Environment • Key Success Factors • Competitive Changes During Industry Evolution • Strategic.Download