SWOT analysis of eBay
This is an eBay Inc. SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article.
Company background Name | eBay Inc. | Industries served | Internet, Online retailing | Geographic areas served | Worldwide | Headquarters | U.S. | Current CEO | John Donahoe | Revenue | US$ 14.07 billion (2012) | Profit | $ 3.229 billion (2011) | Employees | 27,770 (2012) | Main Competitors | Amazon.com, Craigslist, Ubid, eBid Auctions, Google, Overstock.com | eBay is an international online marketplace with a global customer base of 233 million. It is a multibillion business operating in 37 countries. There are millions of items listed on eBay across thousands of categories,
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2. Become a retailer. eBay has an access to hugest online marketplace in the world and is well placed to take an advantage of that by becoming a retailer. 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.
3. Increase services portfolio through acquisition. The company has successfully acquired many companies to extend its services offering and should continue adding new services through mergers and acquisitions.
4. Open more online stores in other countries. To sustain current growth levels, eBay could open its online marketplaces in other large and growing economies in Asia and Europe.
Threats
1. Online security. PayPal stores online shoppers’ personal information, such as bank account details, which is a target for online thefts. The more online customers PayPal has, the more attractive as a target for identity thefts it becomes.
2. Regional low cost online retailers. Regional low cost online retailers could outrival eBay on faster and cheaper shipping, more localized product offering and better knowledge about home market.
3. Increasing competition from Amazon. Amazon’s online presence has significantly increased and now Amazon’s marketplace is just behind eBay’s.
4. Exchange rates. eBay receives a part of its income from foreign
EBay has paved the wave in this industry and being in a billion dollar industry making things happen to benefit consumers in many ways.[5]
eBay has a choice preferred standpoint. Regularly contributed similar to the world 's greatest store, and have a bigger number of things available to be purchased than anyplace else. However its maintainability props on patch up unstable ground as omnichannel world envision, for arranging purposes, that everything is available to be purchased in each commercial center, each methods, and each channel. Partaking connected shoppers may never get to that world, yet it 's a helpful arranging presumption.
E-commerce is the process of buying and selling of various products and services by businesses through the Internet. Primarily there are five types of ecommerce systems: Business to Consumer (B2C)
Ebay is primarily service providers who connect the sellers and buyers by providing platform to sell and buy any goods.
PayPal is a system which customers can use to pay electronically and securely for goods over the Internet. Small, medium and corporate
When looking at eBay’s target market, the segmentation of users appears to be majority males, ranging from 25-34 years old. Over half of the users don’t have kids and also lack college experience. The majority of the people are Caucasian and have a household income of $100,000. After looking at this information there are some good opportunities that eBay could capitalize on.
E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerceand e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes around online retail, (SearchCIO, 2015). In other words e-commerce is the buying and selling of goods and services online.
In my opinion, the best online retailer is Amazon. They easily have the best customer service and product fulfillment when compared to other online retailers. The inventory in the USA is over 200 million products, making such a feat impossible for a physical retail store to compete (Export, 2013). The following essay will discuss Amazon’s pricing and retail strategy. Both are key factors of their marketing that allow Amazon to sustain their market dominance and retain their loyal customers.
There are likewise low leave boundaries in this industry. EBay possesses 35.14 % of the business sector starting 21st of February, 2012, which leaves space for them to grow. EBay requirements to stay aware of purchasers needs and needs alongside watching out for its rivals keeping in mind the end goal to be fruitful.
The market eBay takes place in is primarily the Internet market. Around 1995 the Internet market was just beginning. “there will be more than 500 million users by 2003 and a rapid increase in e- commerce turnover, rising from US$500 billion worldwide in 2001 to more than US$3 trillion in 2004” (Fichter, 2003) EBay was a pioneer in Internet market until competitors such as Amazon and Wal-Mart began to sell products online as well. “Online marketing is now the fastest-growing form of marketing” (Armstrong, 2013). The difference between eBay and its
Despite the fact that the company could grow by doing more and more acquisitions, it was vital for the company to invest in its own organic growth. The company aims to grow organically two to three times higher than the global GDP of 80% (Immelt, 2005).
EBay which is a management that allows people from all over the world to buy and sell items, auctions and shopping online. EBay was founded on 4th September 1995 and by name Auction web of Pierre Omidyar in California. People can sell goods on EBay over the network.
International expansion plays a major role in eBay’s goals. EBay has noticed the increase of international buyers and sellers and needs to make advancement into the international world, and they must do it wisely. When trying to go into China, they failed because they did not have the international knowledge. Now seeing that America, is gaining more international people (i.e. Mexicans, Chinese, etc…) they must gain that international knowledge and expand into international countries that are vital to their market share. Without expanding, they could potentially lose a large part of the market, and that could allow for competition to take
Following a 220% increase in profits and 800% increase in revenues over six months, eBay Inc. is considering the following courses of action:
The fact that eBay does have some successful competition means that its strategic capability has become less unique. There is a hint in their competitor profile that innovation and perhaps adaptability to different cultures as they innovate is not core to eBay and something which has been developed more successfully by others working within their own national culture. Indeed, eBay rules in its own territory of North America and in Europe. The search capability of eBay also means that niche players do not really make sense, whereas the consumer trust that comes from being a big player is worth everything when trading on-line, as is the notion that whatever you want it will be on eBay because of its size. Thus, the so-called network effects of eBay (the bigger the company, the more successful it will be) and its first mover advantage that has led to this level are key to its success.