Does eBay deal effectively with its external environment?
First of all, I want to separate the eternal environment to three parts, one is eBay’s American external environment, one is European and Australian external environment and another one is eBay’s international external environment. In my opinion, eBay’s was good at dealing effectively with American and European and Australian external environment. The reason is eBay’s creator Pierre Omidyar and his wife found a very good business model and vision when they built their business at 1995, which is bidding on Internet community. As the Internet technology environment grown, more and more people like to shop and browse online because online shopping are more convenient, easy, more option and economic. In American market area, eBay was dealing effectively with its external environment, such as eBay’s business concepts, model, acquisitions and strategies. E-commerce was a very good business model and concept during 90s because buyers could select from a lot of goods and engage in many auctions simultaneously, not only a few of sellers with no compares. Sellers also have a huge market and tons of buyers online. By the way, I did some research about American economic and the American economic was good during 1995-2005. The GDP per person rose from 105 to 130. All the external environment of American was good. According to the article, I think eBay only realized that China and Japan have a huge market with millions of people through the research chart and data, but they did not realize other factors, such as the enter and exit barriers, new entrants and competitive environment. After eBay got into the Chinese market, there were many new e-commerce companies or entrants come out and compete with eBay. On the other hand, I think eBay may have some problems on deal effectively with its Asian external environment. EBay tried to expand their market shares to China and Japan,...
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