SWOT Analysis of EBay U.S and EBay Asia
The SWOT analysis critically scrutinizes the strengths, weaknesses, opportunities and threats faced by the Ebay from the consumers’ point of view world wide. The company has been a voice for the consumers and it has played a significant role in the expansion of the market base online.EBay Company has an increasing number of interested individuals in the community ready to do their transactions online. This has increased the demand for more business leading to the company’s expansion. The technology behind operating eBay online is very simple attracting both frequent and non frequent internet users who easily can access information that they need.
This also makes it very convenient and hassle free providing a wide range of products available for the consumers.The company has an added advantage since it has spread its wings and established base worldwide thus creating an international prescence. There are very minimal costs involved on the company’s structure since most of the services are offered online thus reducing the costs of serving customers and easing their reach. There is also a reduction of risks in the infrastructure interdependence. EBay has a very strong financial asset base making it financially stable and enabling it to conduct its businesses without any financial strain.
It has in the recent past acquired many properties and other assets leading to its expansion.There are setbacks and hindrances in the company’s system. This includes the lack of strategies that are well defined for the incorporation of its customer’s base. The mobile devices used in accessing information are also very problematic in accessing information via the net. As eBay is loosing its publicity the mass market is searching for better and more convenient markets that are offering similar services and products. There is also a decrease in price advantage point since the buyer power is higher and the buyers have a wider selection from which to choose from.
EBay has advanced and moved its voice into software licensing there has been an expansion in the global internet community. This has further increased the company’s capitalization of communities for communication world wide. There has also been an increment in the penetration of the broadband modalities i.e. the flat rate mobile data thus increasing the efficiency of services provided to the customers on line.
There is a threat of the substitute products and services since there are very many product alternatives. The international pricing for the flat rate is loosing its price advantage. Most people are not exposed well enough to the mobile usability making it very difficult for them to make any transactions requiring the use of the mobile services.There is also a very high and increased competition from other firms offering similar services and also partnerships are formed amongst the competing companies. There is also bundling by other people making the eBay company loose a significant market share to its rivals.
The high pricing for the services offered has also been a threat and eBay management needs to increase its efficiency since most of their customers are looking for more affordable and flexible prices.It has also become very hard to sell or buy anything on eBay since it takes a very long time to setting up an individual’s auction. In conclusion eBay needs to develop tools that will help build its application and assist their clientele to understand its trends in the market place.ReferencesPeter, S. (2005): Drivers of the consumer’s voice market; New York, Oxford Press University publishers, p 110-125.Chethman, A.
(2002): Emerging communications services, Chicago. Macmillan publishers, p 44-67.Elroy, S. (2006): Data quest SWOT; Ebays world wide, Tokyo. Longman publishers, p 414-607.