In the present report, we analyzed the macro factors, key success factors and threats faced by eBay, the market leader of the online auction industry. PEST Analysis
Through the use of PEST Analysis, we intend to evaluate the present Macro Factors. First, to identify how the Political factors affect the online auction industry, we analyzed the laws and regulation in use. It might be necessary to deal with several jurisdictions, once Internet is everywhere (the auction company may be located in one country, the seller in another and the buyer in a third one). The main type of regulations are the age requirements laws in several countries that forbidden the use of the online auction sites by people under a certain age (e.g. 18 years old). There are also laws that mandate minimal educational requirements, which mean that these companies are forced by states to reduce its target and sales. However, companies may benefit with some political requirements, by the cooperation with law enforcement agencies, like eBay does, to identify customers. Since there is a global economical crisis and people search desperately for new ways of saving income, it's possible to establish the way how the Economical factors affect this industry. Customers can sell or buy (used or new) products, over the internet, at a price lower than the one found in stores, reducing the money spent. So, we could identify that this industry has the opportunity to grow in bust economical cycle. In this industry, companies may consider the consumer Socio-cultural habits. There are still some social opinions regarding this business, such as the prevailing suspicious of buying through the Internet and the possible lack of security. One example that shows that there are some cultures that don’t adapt such a solution is the fact that eBay had to discontinue its operations in the Japanese market in 2002. However, there are some cultural-social factors that may be an advantage. People value their own...
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