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Ebay Strategic Analysis

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Executive Summary
This report seeks to evaluate the major issue facing eBay with regards to its international strategy. This will be done through the analysis of eBay’s competitive environment using the Porter’s 5 forces and positioning in the industry using the BCG portfolio matrix. Following which, we will proceed to identify the sustainable competitive advantages of eBay using the resource-based view of the firm. The core competence of eBay will also be discussed. Through an overview of the above mentioned analyses, we will propose recommendations to address the problem faced by eBay.

Major Issue
From the case, our group has identified a major issue which is imperative to eBay’s future growth and sustainability.

EBay has been doing …show more content…

However, it should be noted that not all webhosting companies are able to host the colossal traffic required by eBay. In addition, eBay would preferably choose a webhosting option that is reliable and offers round the clock customer service since people conduct business over eBay round the clock.

Next, there is a moderate threat of substitute services. More and more offline companies are tapping on the vast potential of the online market through the creation of their online retail sites. For example, if someone wants to get a Dell computer, he may choose to go to Dell’s online store to purchase it. However, the uniqueness of the online auction site is that almost everything under the sun can be listed for sale. If a person is looking to buy something special, he can more often than not find it listed on eBay.
Lastly, there is a great intensity of rivalry among the competitors in the industry. Because of the potentially lucrative market in Asia, there are many competitors wanting a slice of the pie and that includes search engine giant, Google. In China, Alibaba-owned Taobao is already providing intense competition by providing zero listing costs and providing customer service catered to the needs of the local population[2]. In Korea, Gmarket is also providing intense competition by continuously introducing new marketing initiatives such as the ‘lucky lottery’ where buyers may be able to purchase an item for 10% of its retail

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