Porter's 5 Forces: Threat of Entry

Threat of new entrants is relatively low. There are high barriers to entry in the discount retail market, including high capital costs, limited access to investors, and a largely crowded-out market place.

Lastly, Ebay is an important, indirect competitor as it supplies similar products and services but in a different way. Ebay is an auction based market place which only connects the people who wish to trade.

A short year before Amazon was incorporated; eBay (EBAY) was established as a powerhouse internet sales service, garnering success because of the rapidly expanding dot com era. Considered to be one of Amazon 's largest competitor 's, eBay is a similar B2C sales service, offering a unique, but debatably negative, addition to the business. While it can be easily confused for a company that sells items, eBay acts more as a meeting place where sellers can sell to others; like Amazon. Also similar to Amazon, eBay advertises and sells things at a much cheaper price than the brick-and-mortar stores consumers usually purchase items at. One of eBay 's largest downfalls is the bidding service they use. It has remained

Adoption of an improper organizational structure design that is not flexible enough to the unstable and the rapidly changing external environment in eBay’s domestic and international markets.

Due to the constant expansion of the internet, the online marketing company website is one of the current fastest growing industries. With the arrival of internet, it will bring convenience and easy mode of information transfer among people of diverse locations. Through the internet speed, it enables business to speed up many operations and create worldwide products, 24-hours per day at low cost. Internet empowers customers to e-shop from corner to corner of globe. Therefore, there are many online marketing company website increasing appears in the worldwide which it was produces more competitive between the companies. Basically, Amazon.com and eBay are two of the giant platforms in the online retailers industry which means that Amazon is one of the threat and competitor for the eBay company.

On Labor day in 1995, the founder of eBay, Pierre Omidyar, conducted an experiment. Omidyar tested the auction site and was stunned that his broken laser pointer was sold. This was the beginning of the booming industry in e-commerce. eBay had expanded their company internationally for the past few years. eBay is considered the world’s largest online trading website and one of the leading market leaders in the world. We will focus on comparing eBay to its best performer, Amazon, which are two of the largest businesses in the e-commerce industry. According to the NASDAQ, eBay and Amazon are noted as the market leaders of online business. Amazon sells a broad range of products to their customers such as DVDs, CDs, multimedia devices, as well

eBay.com, “the world’s online marketplace”, is an online auction and shopping website in which people and business buy and sell a wide variety of goods and services worldwide. It is managed by eBay Inc, which is founded in 1995 by Pierre Omidyar. eBay’ mission was to provide a robust trading platform where practically anyone could trade anything. It was recognized as the largest and most popular person-to-person trading community on the Internet. (eBay Case, 2006) eBay posted US $8.7 billion in revenue with a net income at $2.4 billion in 2009. eBay is

➢ All high revenue generated or profit making business attracts competitors. Amazon.com would also face competition as it is difficult to differentiate the brand because it sells the product which is available on many other online sites.

Introduction ----------------------------------------------------------------------------------------------------------------- 3 eBay’s Business Model ---------------------------------------------------------------------------------------------------- 3 Strategic Issues and Analysis ------------------------------------------------------------------------------------- 3 - 5    Competitors Challenge

In the age of industrialisation and globalisation, there are numerous companies attempting to operate effectively and efficiently. Nonetheless, it seems to be tough for many enterprises, which are struggling to develop, survive, as well as compete against other companies. Therefore, they need wise strategies to efficiently access the balance power in a business situation and determine the level of competitiveness in industries’ environment.

Ecommerce is the next raising thing in the economic growth market. Thus those who have managed to stake out their niche business in the ecommerce market are leaps and bounds above those who are now just starting to see the relevancy of this new market. As businesses and organizations all look for ways to pull their bottom lines up. They are all looking at the ecommerce market place and are taking notice of the ecommerce market leaders and seeing how they can emulate their success ("eBay, Annual Report 2011," 2012). During this case analysis of eBay shopping spree, the following items will be covered:

The company can also take up a business diversification approach that will give it an imperative competitive advantage. On the same note, it is an important note to that E-bay can benefit from engaging strategic partners or strategic alliances with various partners in a move that can aid in improving the entity’s overall operations. For instance, eBay’s acquisition of PayPal and Skype in the year 2002 and 2005 significantly improved the company’s overall share listing in the share markets (Wenig 2017). The company has seemed to grow at a rapid rate, based on the ability to tap the opportunities brought about by an expanding product portfolio that is mostly due to a higher level of partnership with key strategic partners. The company can utilize the use of online stores as a way of expanding to new market environments such as in new countries.

Thus far EBay has attempted joint ventures and mergers to enter the Asian market share and has met negative results. This has had a negative effect on their overall performance to expense ratio in their stock valuation from 2000 thru the present time but has not deterred management from continuing to compete for a market share in Asia. An ongoing joint venture with Yahoo keeps EBay with a foot in the door of the foreign market and continues the strategic alliance against Google. EBay has expanded to Southeast Asia to see what they can obtain in Singapore, Malaysia and through operations in the Philippines. Currently they are doing promotional sites in Thailand and Vietnam to gauge future profits in those nations as

One of the most successful and leading brand which adopted internet as its primary distribution channel is Ebay. It reaped hoard of revenue by employing this strategy. Ebay is an online marketing system which provides producers all around the world with the opportunity to sell the products to the global community. Ebay adopted this strategy because internet itself is the tool which connects the world together creating a global community. It saw the opportunity in the untapped market on the internet and

The business opportunity for eBay as of right now is not great although there is a lot of potential growth in the future. In 2014, the Indian ecommerce industry showed a tremendous growth. This growth is driven by the rapid adoption of technology such as smartphones and tablets (ecommerce in India – Accelerating growth, 2015). There are opportunities for eBay to expand its market and invest more in the future. But there are also their competitions that they need to worry about. A company like Amazon is a well-known international online shopping superstore where you can buy almost everything. There are Flipkart and Snapdeal that started their online store in India. eBay is losing its battle with their competition. For example, eBay Inc. pumped in about `650 crore into the India business last year. In comparison, Flipkart raised about $1.4 billion from institutional investors in the last 13 months, while Snapdeal mopped up $1.1 billion in about the same time. Amazon also announced in that the company will pump in $2 billion into India. Amazon has infused `2,437 crore into its India arm. (live mint, 2016). Although eBay is not making as much revenue as they wanted the future generation in India will become more online. The Indian youth will dominate the county 's 130­million strong urban mass and it will drive the consumer market growth over the next 5­10 years (The