eBay owns and operates eBay.com, the leading person-to-person and small-business auction community on the Internet. The company has around 62 million registered users who can buy and sell goods in more than 18,000 categories ranging from toys to antiques. As well as owning 60 smaller, location specific marketplaces in the US, eBay has also gained a foothold in Europe, Latin America, and China through a series of acquisitions and investments.
|Strengths |Weaknesses | |Market leadership |Advertising revenues | |Intellectual property |Technology development | |Brand |Litigation | |Double-digit growth |Increased expectations | |Pay Pal | | |Business model | | | | |Opportunities |Threats | |Competition |Internet usage | |Interest and foreign currency exchange rates |International expansion | |Consumer confidence |New markets | |Seasonality |Market penetration |
eBay operates the leading online auction community on the Internet. Market leadership will benefit eBay in a number of ways. Firstly it will enable eBay to maintain a high level of brand awareness for the company and its offerings. Market leadership will also enable eBay to exert a greater influence on the marketplace. For example, the company would be in a better position to combat any new entrants into the market.
eBay’s intellectual property such as its trademarks, copyrights, patents and domain names will help to give the company a competitive advantage over its rivals in the market place. This in turn will help eBay to generate increased sales, profits and market share.
The strength of the eBay brand name is increasing. The brand is now becoming more mainstream, as it benefits from an increase in both brand awareness and brand recognition. The eBay brand name is also becoming better known internationally as the company expands its international presence to cover more markets. The increased equity of the eBay brand name will help the company to generate increased sales and profits.
A double-digit growth in sales has been seen in a number of the company’s eight core product categories. In the past year, eBay Motors saw its revenues increase by 88% year-on year, while eBay Media and eBay Collectibles posted a 52% and a 23% yearon- year increase in revenues respectively.
The acquisition of Pay Pal has helped the company to enhance the experience of customers using eBay. This has had a knock on effect and helped to boost the satisfaction of customers using eBay. Pay Pal saw its revenues rise by around 90% year-on-year, while it also experienced an 80% increase in payment volumes.