Strategic Management Report
Tutor: Mr. Nguyễn Đăng Hoàng
Report Case Study : eBay
Group 6-Tut1BA10 Members:
Lê Huy Thắng 1004000075 Phạm Quang Hiếu 1004000024 Nông Hải Âu Trần Văn Thắng Lưu Tiến Linh 0907010020 1004000076 1004000041
CASE STUDY: eBay
Question 1: Macro-environment forces: Five-forces model Assumption: all arguments are equally important. Elements Arguments rapid industry growth recent entry of new competitors (especially fixed Rivalry (high) price/online retailers) users have low switching costs eBay's dominant market share only minimal product differentiation relatively few entry barriers, except for marketing/brand image New entrants (moderate) low capital requirements to enter the industry high profit levels eBay's dominance/brand image discourages many new firms readily available substitutes: garage sales, flea markets…. not as convenient as online auctions Substitutes (moderate) product variety: low customers' low switching costs to substitutes ability to purchase quicker from physical retailers items are readily available from many suppliers Suppliers (moderate) low switching costs to different suppliers substitute suppliers are readily available good relationship with suppliers help reduce cost Buyers (weak for individuals, individuals buy in small quantities individuals have little negotiation power against large Mark (-) (+) (+) (+) (+) (+) (+) (+) (-)
(-) (-) (+) (+) (-) (-) (+) (+) (-) (-)
moderate for power buyers)
companies groups make up a large percentage of companies' sales switching costs for buyers are relatively low (+) (+)
Question 2: Online auction industry driving forces: 1. The growth of the Internet during 1990s The Internet ganered widespread use as a part of daily life. 2. Changes in lifestyle. Increase in the business-to-consummer E-commerce Conclusion: Driving forces are collectively acting to cause the demand for the industry’s product to increase. Driving forces are acting to make competition more intense The combined
Report Case Study : eBay
Group 6-Tut1BA10 Members:
Lê Huy Thắng 1004000075 Phạm Quang Hiếu 1004000024 Nông Hải Âu Trần Văn Thắng Lưu Tiến Linh 0907010020 1004000076 1004000041
CASE STUDY: eBay
Question 1: Macro-environment forces: Five-forces model Assumption: all arguments are equally important. Elements Arguments rapid industry growth recent entry of new competitors (especially fixed Rivalry (high) price/online retailers) users have low switching costs eBay's dominant market share only minimal product differentiation relatively few entry barriers, except for marketing/brand image New entrants (moderate) low capital requirements to enter the industry high profit levels eBay's dominance/brand image discourages many new firms readily available substitutes: garage sales, flea markets…. not as convenient as online auctions Substitutes (moderate) product variety: low customers' low switching costs to substitutes ability to purchase quicker from physical retailers items are readily available from many suppliers Suppliers (moderate) low switching costs to different suppliers substitute suppliers are readily available good relationship with suppliers help reduce cost Buyers (weak for individuals, individuals buy in small quantities individuals have little negotiation power against large Mark (-) (+) (+) (+) (+) (+) (+) (+) (-)
(-) (-) (+) (+) (-) (-) (+) (+) (-) (-)
moderate for power buyers)
companies groups make up a large percentage of companies' sales switching costs for buyers are relatively low (+) (+)
Question 2: Online auction industry driving forces: 1. The growth of the Internet during 1990s The Internet ganered widespread use as a part of daily life. 2. Changes in lifestyle. Increase in the business-to-consummer E-commerce Conclusion: Driving forces are collectively acting to cause the demand for the industry’s product to increase. Driving forces are acting to make competition more intense The combined