Ebay Strategy Report

Ebay, as a company itself, fits more in the category of an oligopoly, which is actually pretty common in any market. Other alternative websites include Yahoo!, Amazon, and Quibids, but there are only a small number of them, certainly not hundreds as in monopolistic competition. Also, eBay is interdependent on the few other auction website companies, competing with the fees they charge, as well as quality of customer support, and buyer/seller reliability. Another characteristic of eBay that coincides with it being considered an oligopoly is the fact that it has numerous entry barriers. It’s such a large company with many restrictions, and it would be hard for an up and coming substitute auction website to break into the market and compete with eBay or the other top companies in the industry. (6)

The use of PEST analysis can be seen effective for business such as their strategic planning, marketing, and product development. Furthermore, PEST ensures that company`s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST have four factors which are Political, Economic, Social, and Technological. However, we use these factors to check how they interplay to the business or the activity of an organization.Using PEST analysis is important when a company decided to enter its business operation into new markets and new countries. In this case, using PEST will help to adapt effectively to the realities of the new environment and to make contingency plans for threats by preparing business and strategic plans (Byars, 1991; Cooper, 2000).

The chart on the right shows the relative sales for EBAY and its competitors. These companies have diverse products that are sold on line to consumers and industries all over the world. This is not the best way to measure the success of these companies because it does not account for the size of the company into account. The best way to measure the performance of these companies would be through their relative return on equity.

Many off-ebay customers are not attracted towards PayPal because of the fee based revenue model.People mainly prefer free services.Even credit cards offer a interest free credit period in which money transfer/transaction can be done without paying any extra money.Paypal should also think on modifying its service on the similar lines.

Dembosky, A. (2012). Ebay moves beyond its dotcom roots. Available:http://www.ft.com/cms/s/0/df3723ca-1773-11e2-8cbe-00144feabdc0.html#axzz2EbzDqb5Y. Last accessed 10th Dec 2012

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

Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per

The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.

With this in mind, the PESTEL model was developed to give researchers and practitioners a framework in which to consider the broader business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Furthermore, a PESTEL analysis is a technique that evaluates the potential impact of political, economic, social, technological, environmental, legal factors on an organization. This set of factors represents a broad set of industry and environmental considerations that any organization should make when designing strategic goals

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 company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.

"PESTEL is an important tool used for market and environmental analysis and to support strategic decision-making" (Narayanan and Fahey, 1986). The purpose of this research is to present IKEA influences through PESTEL analysis.

PESTEL analysis is to identify and analyze the strategy and business environment, it is stand for Political, Economic, Social, Technological, Legal, and Environmental factors. This model is to assessing the current environment and potential changes. If

What aspects of eBay’s strategic capability are easily copied by new entrants and if so would you copy them and how would you copy them?