EBay Essay Example | Topics and Well Written Essays - 2000 words

EBay - Essay Example Approximately 430,000 people today in the USA come up with all of or even the majority of their own existing through this web site (Lewis, 2008). The actual goal of eBay was to promote the task ethic and traditions associated with the exciting, wide open as well as trustworthy atmosphere to achieve and maintain the main concerns of the organization. For this it has successfully kept its customers protected from other rivalries by providing a smooth open trading forum for sale and purchase. This paper is an attempt to familiarize the audience about the success of eBay with a brief touch of its SWOT analysis, Porter’s Five Force Model, and Value Chain Analysis. 1. eBay: SWOT Analysis 1.1 Strengths 1.1.1 Brand. The fame of eBay brand is consistently increasing over the years and now the brand has become a source of benefit to it. The brand is widely appreciated throughout the world because the firm is expanding its areas of operation on global scale and thus public has its great awareness and recognition. The company has estimated greater revenue in near future due to the wide recognition of equity of eBay brand. In addition to this, eBay’s trademark, copyrights, patents, and domain names will also help the organization to get a competitive advantage over its rivals. In turn, eBay will enjoy extra sales and earnings. 1.1.2 Market Leadership. eBay offers the best and leading online auction services to the community on global scale. It is the leading company of auction industry as still it possesses 17% online market share and it will enjoy its leading place in various ways. Top rank position will enable the company to increase its brand recognition and greater impact on auction industry. eBay can easily combat the competition from any of its rivalry or new entrant by using its leading seat. 1.1.3 Strategic Assets and Earning Growth. eBay is possessing great strategic position in the market and this status provides it a competitive advantage over its r ivalries. In 2010, the eBay’s overall worth of sold products was $62 billion which was more than $2,000 every second (http://www.ebayinc.com/who). The company’s net revenue remained 2.5 and 2.8 billion dollars in first and second quarters of 2011 respectively. The potential of growth is estimated to increase significantly by December 2011 i.e. 17.40% which would be four times than of June, 2011. 1.1.4 Pay Pal. eBay has successfully kept its customers stay in touch with it by the acquisition of Pay Pal. The possession of Pay Pal has not only increased the numbers of customers but it also developed the confidence level of buyers on eBay manifold. 1.2 Weaknesses 1.2.1 Advancements in Technology. Since latest technologies are easily available in the market, therefore the auction market has been converted into replicated environment. Due to this trend, the auction industry is getting restricted to internet only. In order to ensure the auction more convenient, eBay must work on its user interface working environment. Although it is already producing great revenue, however, by doing so, customer level of confidence on eBay will be improved as well as the traffic of visiting users would also increase. 1.2.2 Expectations. eBay’s track record over the years has increased the customers’ level of expectations manifold. In current scenario it seems to be improbable that eBay will keep on producing the same upshots. Therefore, if eBay goes to do so, it means firm is forced to set