The Structural Challenges Of Ebay

1932 Words8 Pages
Weakness A major challenge that eBay has been facing in the last few years is the structural challenges related to credit card interchange and the ability to link such systems with other mobile operating platforms. Another key issue that has emerged as a major weakness for eBay has been the reality that there is no further growth strategy for the entity. Perhaps this is due to the fact that eBay currently uses an online platform that may not provide further growth to the systems currently being utilized. eBay has also had a challenge with the current business model, which despite its brilliance has been argued to present certain logistical challenges for the company’s operation. The company’s model has seemed to expand it’s portfolio…show more content…
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. Threats A key issue that has come out in the recent years is the threats associated with online security and dealing with ambiguous clients. In essence, cyber security and cyber safety have become a constant concern for online markets and poses a key threat to eBay. On the other hand, the company may face threats presented by other low-cost retailers who have become common in the last few years (Wenig, 2017). On the same note, Amazon poses a major threat to eBay as the key competitor in a market that is highly dynamic. One of other major threat that eBay faces is the unpredictable exchange rates across the
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