eCommerce: Situation Analysis of eBay
I. Executive Summary eBay Inc. is an American multinational internet person-to-person corporation that manages eBay.com which an online auction and a shopping website. It was founded by Pierre Omidyar in September1995. eBay’s major competitors are Amazon.com, Yahoo Auctions, and uBid.
We, the case analysts, analyzed what are the situations of the company internally and externally. We used Competitive Profile Matrix, SWOT Analysis, and we compared eBay.com to Amazon.com (closest competitor) using their financial ratios .
We recommended three alternative solutions to cope up the problems that eBay Inc. facing.
We recommended three alternative solutions that can help to solve the problems facing by eBay Inc. __________________________________. However, we choose ____________________
II. Situation Analysis A. Environment
Economic conditions and trends
Market size is expected to be $1 billion in 2005 from only $665 million users in 2002; this population growth denotes an increase of potential customers for online auctions and retailing in general. In addition, Forrester Research forecasted e-Commerce revenues to be $6.79 trillion in 2004 from only $170 billion in 1999, a 4000% increase. This exponential improvement signifies an economic boom for online businesses.
Cultural and social values and trends
The changing lifestyles of people suggest an increasing need for the convenience offered by online auctions and retailing. People are now too busy to have time to go out and shop. Knowing the power of the internet, they turn to their computers instead when they are looking for something they want or need.
Political and legal issues
Fraudulent actions from auction users pose as a threat towards eBay’s accountability. Auctions intended to scam bidders may be posted and remain active until detected and deleted by the administration.
Summary of environmental opportunities and threats
Opportunities
* Increasing users of the internet * Market
We, the case analysts, analyzed what are the situations of the company internally and externally. We used Competitive Profile Matrix, SWOT Analysis, and we compared eBay.com to Amazon.com (closest competitor) using their financial ratios .
We recommended three alternative solutions to cope up the problems that eBay Inc. facing.
We recommended three alternative solutions that can help to solve the problems facing by eBay Inc. __________________________________. However, we choose ____________________
II. Situation Analysis A. Environment
Economic conditions and trends
Market size is expected to be $1 billion in 2005 from only $665 million users in 2002; this population growth denotes an increase of potential customers for online auctions and retailing in general. In addition, Forrester Research forecasted e-Commerce revenues to be $6.79 trillion in 2004 from only $170 billion in 1999, a 4000% increase. This exponential improvement signifies an economic boom for online businesses.
Cultural and social values and trends
The changing lifestyles of people suggest an increasing need for the convenience offered by online auctions and retailing. People are now too busy to have time to go out and shop. Knowing the power of the internet, they turn to their computers instead when they are looking for something they want or need.
Political and legal issues
Fraudulent actions from auction users pose as a threat towards eBay’s accountability. Auctions intended to scam bidders may be posted and remain active until detected and deleted by the administration.
Summary of environmental opportunities and threats
Opportunities
* Increasing users of the internet * Market