Strengths And Weaknesses Of Ebay
I. EBay has more than 150 million live listings with over 105 million active users globally spread across 37 countries. It is the largest online marketplace, which empowers online sellers and buyers trade freely.
II. Business Model – It acts as a mediator between the seller and the buyer and does not stock any inventory like Amazon. They are the pioneers in online auction and there are few companies who would be able to compete with them. Thus, they have a model which is sustainable in the market
III. Economies of scale – Initially, EBay had made a huge investment in developing their Technology. Now they have are using their knowledge and skills to cater to the larger set of customers, over 100 million.
IV. Localization – They …show more content…
Brand Reputation – It is a trust worthy company, which has an estimate value of $11 billion
Weaknesses - EBay
I. High Fees – EBay charges high fee for the listed products, sold products, adornment fee and paypal transaction fee, which significantly increases the price of the product for the seller and the buyer. In the end of each transaction the seller ends us selling the product at the cost price and ends up making no profit due to high transaction fees.
II. Absence of Growth Strategy – EBay is not sure, which strategy, they would like to adopt, retail, manufacturing, introduce new products and etc. Due to the absence of robust strategy, it leaves them with no direction to sustain in the future market.
Opportunities - EBay
I. Increasing number of Mobile Shopping – There is no doubt that PayPal gives EBay the security for each transactions. But at the same tome there is no denying in the fact that the number of mobile shopping has increased incredibly. Therefore, company should look at ways, if the transaction can be done using PayPal
II. Increase in services using Portfolio - EBay has been successfully acquiring many businesses with these additions; they should look at increasing the services, which are available …show more content…
Untapped Countries – In order to have long term sustainable growth for themselves, they should venture into Europe and Asian market.
Threats - EBay
I. Online Security – PayPal stores all the financial details of the customers, which is on a high target for online thefts. As more and more information is stored in their database, online hackers would find it more attractive to steal the data.
II. Local retailers competition – Domestic sellers in the market have become their one of the main rivals, because they are able to provide the same product at a cheaper price and faster delivery.
III. International Competitors – Amazon has been constantly causing threat to their business because they keep adding more products from time to time and have ventured into manufacturing of electronic products (Investors, 2013).
IV. Overseas Exchange Currencies – Since it has presence in the other countries, therefore it receives their revenue from other parts of the world and when they are converted into US Dollar, it incurs an extra cost. This can have more determining impact, if the dollar value is getting appreciated in comparison with other countries (Interbrand, 2013).
4.2 SWOT Analysis – Amazon