A Complete Analysis of the External Environment and Ebay

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  • Topic: EBay, Auction, Online auction business model
  • Pages : 16 (5124 words )
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  • Published : September 3, 2009
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A Complete Analysis of the External Environment and eBay
Table of Contents
The Remote Environment
Analysis of trends in the legal environment_ 4_
Analysis of trends in the social environment_ 5_
_ Analysis of trends in the technological environment__ 5_ The Industry
Major competitors_ 6_
_ Product innovations and barriers__ 6_
Bargaining power of buyer / suppliers_ 7_
Nature of rivalry_ 8_
_ Substitute products__ 8_
_ Industry problems and issues__ 8_
_ Strategic factors for a firm to be successful in the industry__ 9_ _ Important threats and opportunities facing the industry and eBay__ 10_ The Firm
_History 10_
_ Personnel__ 19_
_ SWOT Analysis__ 21_
_ Competencies, core competencies, and distinctive competencies__ 22_ _ Value Chain Analysis__ 23_
_ eBay statement of strategic objectives__ 24_
_ Recommendations for eBay__ 24_
The Remote Environment
Analysis of trends in the economic environment and their potential impacts on the industry- The world currently has a population of about 6.5 billion with an accompanying growth rate of 1.167%. More specifically the U.S sports a population of 300 million and a growth rate of .91%1 65.1% of the worlds population is between the ages of 15-64 which represents the ages that a majority of the world gains purchasing power. GDP growth rate for the world is 5.3% vs. 3.2% for the U.S. Some contributors to this statistic would be the Personal Consumption Expenditures(PCE)2 Global output rose by 5% in 2006, led by China (10.5%), India (8.5%), and Russia (6.6%).1 Increase in spending, overall in the U.S.from January 2006-January 2007, is well above the average increase in income. Although there are sporadic months where the increase in personal income actually met or exceeded the increase in consumer spending, in general the increase in consumer spending was well above the increase in income rates2. See graph {draw:frame}

52% of Americans describe the economy as excellent or good and an additional 33% rate it as fair. This translates to average consumers willing to spend and invest more into the economy.28 Americans seem to be most upbeat about the stock market, local economic conditions, and their own financial situations.28 However, the higher oil prices are projected to really cut into the amount of income put back into the economy. With the constant rising of prices, consumers are trying to conserve money and are not sure how long prices will continue to go up. The National Economic and Social Development Board has reduced its estimates of growth rate from 5.56% to 4.55%.2 Analysis of trends in the legal environment and their potential impacts on the industry- All companies within each specific industry are subject to certain regulations. One regulation is the Federal Trade Commission, which deals with issues that effect everyday economic issues. It aims for both consumer protection and competitive jurisdiction. The FTC pursues vigorous and effective law enforcement, advances consumers interest, and develops policy and research tools. The FTC affects the world of business in that it forces participants to abide by a certain code of standards.3 Tax laws affect anything that involves spending or earning money. Companies have to adhere to tax laws in order to be allowed to continue being in existence as a company. In the U.S., different states have different tax laws. Companies targeting an online audience must keep in mind that when making a sale to residents of different locations, there might be different tax laws and codes. Ignoring these laws has produced trouble for many companies in the past. 3 Analysis of trends in the social environment and their potential impacts on the industry- The average life expectancy is on the rise...