External and Internal Environments Essay
April 28th, 2013
The forces within the general environment, including politico legal, economic, technological, socio cultural and international forces, have a broad general impact on the organization. Although these forces do not always have a direct influence on the organization's daily activities, they are important.
Today eBay users can bid anything from office equipment’s to real estate to cars. It is surprisingly true but perplexing that “Why has eBay prevailed, but others have failed?” Though many of its successes resulted from its adaptive approach, eBay’s accomplishments can also be explained by the company’s consistent focus on two long-term goals that is “becoming the …show more content…
The risk of entry by potential competitors is relatively high due to low barriers to entry. New competitors can launch new sites at a nominal cost using commercially available software. This low barrier to entry will cause competition to intensify in the future. Also due to the broad range of products sold at eBay there is many more opportunities for new competitors to enter in more specific market segments.
4. Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer. eBay's core business of online auctions is struggling. Traffic has dropped as consumers favor websites with set prices, such as Amazon.com and Walmart.com. The biggest issue eBay faces is that consumers have other e-commerce alternatives, including Amazon.com and Bestbuy.com-especially for mainstream retail goods, which now represent 50% to 60% of eBay's product mix.
With eBay extending its platform into fixed price sales, it was also petrified that Amazon might buy half.com instead, which would have propelled the retailer’s growth from e-commerce into a virtual network. The acquisition has enabled eBay to develop its fixed price model, with many auctions advertising a “buy-it-now”