SWOT Analysis

NURUL FATINI BT ASRI

SYARIFAH NURNADZIRAH BT SYED AZMAN

DCM 4

1052DCM113

Company Detail

Ebay.Inc is an American multinational corporation and e-commerce company, providing consumer sales services via the Internet. It is headquartered in San Jose, California. eBay was founded by Pierre Omidyar in 1995, and became a notable success story of the

dot-com bubble; it is a multi-billion dollar business with operations localized in over thirty countries.

The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. In addition to its auction-style sales, the website has since expanded to include "Buy It Now" shopping, shopping by UPC, ISBN, or other kind of SKU online classified advertisements online event ticket trading online money transfers and other services.

Type of Business

eBay.com is the largest online marketplace ecommerce  in the world with several million visitors every day. Advertising on eBay is a low-cost and efficient way to sell items and advertise new items at the same time.

SWOT Analysis

Strengths	Weaknesses
1.      World’s largest internet marketplace 2.      Business model (no strong direct competition) 3.      Economies of scale 4.      Localization 5.      Payment system 6.      Brand reputation	1.      High fees 2.      No further growth strategy

Opportunities	Threats
1.      Growing number of mobile shoppers 2.      Become a retailer 3.      Increase services and product portfolio through acquisition 4.      Open more online stores in other countries	1.      Online security 2.      Regional low cost online retailers 3.      Increasing competition from Amazon 4.      Exchange rates

Conclusion

Ebay is currently one of the internet's big success stories. Despite this, standing still is never an option for any e-commerce business. Though Ebay is currently a leading market place operating as an online auction, flea market and general marketplace ongoing innovations will be necessary. Given the nature of the internet, mergers, purchases and partnerships with other businesses which provide world-leading services such as those provided by GSI commerce influence Ebay's continued success on the internet.

Ebay's current services revolve around connecting buyers to sellers. To continue to be successful, Ebay must maintain and grow its online presence and continue to maintain the attention of many online visitors to browse the website for available content. The lure of a potential bargain that is driven by Ebay's style as an auction house and the relative convenience of Ebay's extensive product offerings from sellers are key to maintaining the public's interest. In this way Ebay is well placed as for as long as it maintains a large number of sellers, its product offerings remain diversified and unique. Competition also drives down price which in turn maintains people's interest in the marketplace.