Ebay Essay

2710 Words Sep 18th, 2008 11 Pages
Table of Contents

1. Company Description

2. Question
2.1 What is competition like in the online auction industry? How strong are the competitive pressures confronting eBay and other online auction firms?
2.2 What forces are operating in the online auction macro-environment that has the power to alter the nature and structure in the online auction industry?
2.3 What does a strategic group map reveal about the positions of the major players in the online auction industry? Is eBay in a good position on the map? Why or why not? Who are the closest competitors?
2.4 What do you see as the key success factors for firms in the online auction industry?
2.5 What does a SWOT analysis reveal about eBay’s situation? Just how attractive is
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In addition, the number of Internet users is increasing greatly since the markets had been globalized. According to the textbook, International Data Corporation (IDC) estimated that in 2004 there were approximately 700 million Internet users worldwide in over 150 countries, and it estimated that number would grow to 1.1 billion users worldwide by 2007. Also, IDC predicted that the worldwide market for business to consumer Internet spending would increase from $216.2 billion in 2003 to $759.4 billion in 2007. Forrester Research forecasted a similar increase in the online auction market, from $13 billion in revenues in 2002 to $54 billion in revenues in 2007. It is surprised that these markets show the large growth, especially the online auction market increases almost four times for three years.
As you see the number of users on previous paragraph and the market scales, it is obvious that the competitive pressures are very strong. One of the reasons why the competitive pressures are high is because there are a lot of competitors which are online retailers against eBay. For example, eBay compete with Wal-Mart, Kmart, Target, Sears, JCPenney, and Office Depot. The company also felt that it was struggling with a number of specialty retailers such as Christie’s (antiques), KB Toys, Blockbuster, Dell, Foot Locker (Sporting goods), Ticketmaster, and Home Depot, and others. Therefore, a variety of rivals makes online

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