Ebay Swot Analysis Essay

4756 Words 20 Pages
Register to read the introduction… In countries where currencies are highly devalued in comparison with the dollar, additional costs can be added
The global economy affects consumers spending power. A turndown in the global economy may result in reduced customer spending.
The increasing age of the population means that a greater number of the population will be retired and therefore may have more time to spend on the internet. However, older users tend, on average to use the internet less and also will have a reduced income in retirement. This can also work in Ebays favour in that older people may wish to supplement their income by using ebay and may have more time to do so.
Social Factors
This involves the cultural changes and the lifestyles of consumers constantly shifting their preferences over time. Growth in popularity of social networking sites and development of the mobile society ids the beginning of the ‘connected era’. Other ethical and religious factors also come into play. In some cultures, internet use is not allowed due to the fact it may damage their cultural, ethical and social
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Due to ebays breadth of product range there are very few product substitutes therefore I have assessed this risk as low.

Power of Buyers (Customers) * Both buyers and sellers are customers of ebay in that they both generate revenue for Ebay. For the purposes of this analysis I have looked at customers buying the ebay products. * Buyers have a wide choice of where to shop, internet, shop or another internet site so to a degree the power of buyers is high but ebay also sells end of range, rare and collectable items that can’t always be easily found elsewhere. Also, except for ebay express that offers a fixed price option on new goods, ebay cost of products depends on bidding activity not price. * There is a low switching cost for a buyer to choose between ebay and another supplier of goods increasing buyer power.
Customers are important to this industry to maintain and increase market share They have a choice of where to shop and switching costs are low. However, very few sites offer the breadth and scope of ebays products and auction style approach so I would assess power of customers as medium.
Power of Suppliers

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