Ebay Case

Topics: Innovation, Financial crisis, Strategic management Pages: 1 (308 words) Published: June 27, 2011
1. What are the greatest opportunities and threats existing in eBay's current external environment? In the current external environment the online sales are still a growth industry there are some opportunities for ebay, the actual global economic crisis it could be an opportunity due the unemployment and the decrease in the power purchasing parity and mortgage crisis generates two effects, first the buyers are look for discounts, and second the sellers by this channel could increases. The importance of the Latin immigrants in the US it turns as a new market niche, whose are more familiarized with the internet culture and are looking for their native products through this channel. There is an opportunity to explore new markets, due EBay’s experience and the virtual platform they could incursion in new markets such as developing country, innovating in new technologies. On the other hand there are some threats to analyze, the global crisis it could be as well a threat because there is a decrease of buyers. Another threat is related to the low enter barriers for new aggressive competition backed by high investment in new technologies by private upstarts whose are attracting their costumer with new offers and discount programs and a last one, the introduction of direct retailers in this sale type it’s another disadvantage in order that they can offer better prices.

* What are the company's greatest strengths and weaknesses? Based on the SWOT Analyze, the greatest strengths are the recognition in the global market as the online leader retailer, the effectiveness of their strategic alliance i.e. PayPal, and their expansion on their list of new products (cloth, technology, cars, machinery, books, etc.) their major weakness are the innovation in new technologies.

* Does eBay's stated purpose provide adequate direction for making the important decisions which the company presently faces?
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