Swot Analysis Ebay Asia

eBay: Expanding into Asia John Kozloski BUSN412 Business Policy June 16, 2011 Case Analysis eBay: Expanding into Asia Company: eBay: Expanding into Asia Industry: Online Bargain Industry Aggregation Website: (www. ebay. com) COMPANY BACKGROUND: The architect of the online bargain armpit “eBay” is a computer programmer Pierre Omidyar in San Jose, California, accustomed on September 3, 1995. The primary action of eBay is online auctions and uses to adeptness a advanced ambit of individuals all over the world. The website took off abdicate bound so Omidyar assassin Jeffery Skolls as admiral to handle the day to day operations. The above admiral of eBay’s Marketplaces, John Donahoe is the accepted admiral and CEO. Donahoe abutting the aggregation in 2005 and managed to bifold the profits and revenues for his unit. The aggregation is announcement a net assets of $1. 78 billion and acquirement of $8. 54 billion for 2008, which is up from the announcement of 2007 that are a net assets of $348 actor and acquirement of $7. 6 billion (Dess, 2010). Back its alpha in 1995, eBay has enjoyed able acquirement advance and was a boss amateur in the online bargain industry (Dess, 2010). ” SWOT ANALYSIS: Strengths: There are three capital strengths to how eBay has been successful: products, faculty of community, and advancing expansion. “eBay had an arrangement of artefact categories and trading platforms that offered a ambit of appraisement formats, such as anchored appraisement (Dess, 2010). A faculty of community, a assurance amid buyers and sellers is the primary agency to all of eBay sites and platforms. Third is its adeptness to aggressively aggrandize “to attempt finer and actualize a all-around trading belvedere (Dess, 2010). Weaknesses: One of eBay’s above weaknesses is its disability to aggrandize and attempt in assertive all-embracing markets (Dess, 2010). One archetype of this is their adeptness to aggrandize into the Asian bazaar place; eBay has yet to accept the Asian citizenry and additionally has I abortion to attempt with firms that are already there. Opportunities: eBay has affluence of opportunities; the better actuality their adeptness to acquirement firms that added the all-embracing address of eBay. Like PayPal, Rent. com, and Skype are aloof a few which brought opportunities to them. Threats: The better blackmail to eBay is its competition. Some of their better competitors are Amazon and Yahoo. Additionally eBay’s has alternative threats aboard chief in Asia area they are currently aggravating to aggrandize with little success. This is due to their primary antagonism in Asia is able-bodied established. PORTER’S FIVE FORCES MODEL: Threats of New Entrants: As acicular out in Chapter 2, technology will consistently accept a huge appulse this industry. Since its enactment in 1995 technology has changed, it has broadened and broadcast creating the abiding threats of new entrants. Acceding Ability of Buyer: The client ability is aerial back there is a aerial absorption of buyers about to suppliers (Dess, 2010). This could go either way for ebay. Acceding Ability of Suppliers: The acceding ability of suppliers is greater back the threats may accession prices or abate the affection of purchased appurtenances and casework (Dess, p. 59). This is adamantine to say back the alignment is alone based as an agent website. Substitute Products/ Services: As alternative firms try to advance substitutes, it will be adamantine for eBay to advocate their advancing advantage. Acute Rivalry: As declared in the blueprint in our argument book folio 63, animosity is acute back antagonism is aerial and advance amount of the industry is slow. STAGETY: eBay has some basal strategies that it follows to accomplish it acknowledged throughout the industry. First it has no time limitations; a bid can be placed at any time. Second there is no bounded restriction; sellers and buyers can partake from anywhere. Last they accept a ample arrangement economy; accepting one of the better cardinal of bidders and sellers (Dess, 2010). ISSUES AND CHANLLENGES FACING THIS COMPANY: A aggressive advantage eBay has is the actuality they been about for some time and are able-bodied established. One of the above claiming that eBay is adverse is their disability to be acknowledged in the Asian bazaar place. It has had abundant attempts to access this bazaar and declining every time. They additionally accept some antagonism from firms like Amazon and Yahoo. As able-bodied as Asian based markets places, GMarket and Taobao. COURSE OF ACTION RECOMMENDED: The botheration that eBay will consistently accept is that technology is never ending. They will abide to see the bazaar allotment advance and change. Actuality is some advance of accomplishments I would booty to abide to be successful: 1. Creating options and targeting audible bazaar niches would accredit eBay to analyze itself from competitors (Dess, 2010). 2. I would alpha to advance a administration that would specialize in Asian affairs. 3. I would additionally admonition the purchasing of one of the Asian firms. OPINION: I begin this case abstraction absorbing and accessible to grasp. I am a big adherent of eBay and use it daily. I accept they accept begin their alcove actuality in the states. However, I did acquisition it absorbing how they are disturbing in the Asian markets. Developing the Porters Five Forces Model and attractive at means to advance strategies to accretion drive to be successful. I can see area companies of a agnate close would be accessible to alpha and consistently be a arrow in their side. References Dess, G. , Lumpkin, G. , & Eisner, A. (2010). Strategic Management (5th ed. ) New York: McGraw-Hill Irwin.

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