eBay Analysis Essay -- Case Study SWOT Business Model, solution

I. eBays VisionII. eBays Business ModelIII. Industry Analysis Background Porters five forces SWOT analysisIV. eBay FinancialsV. sum-up and RecommendationsI. eBays Vision eBay was founded in the San Jose living room of Pierre Omidyar back in September 1995. The basic vision Omidyar had when he founded what became eBay was to create a mortal to person trading community based on democratic commercialise principles these principles allowed for a free flow of information, communication and ultimately transaction on tens of millions of items by means of the internet. Along with the help of Meg Whitman, a skilled branding manager, and a senior staff from such heavily branded companies as PepsiCo and Disney, they established a strong mission for the company- that eBay be a company that is in the business of connecting people, not selling them things. This founding vision set the course for eBays volatile growth, making it the worlds online marketplace for the sale of goods and services by a diverse community of individuals and businesses. II. eBays Business ModelSince its inception in 1995, eBay has become the market leader and innovator in the online auction industry and its brand has accordingly become synonymous with e-commerce. Rapid growth and being the first to market served eBays competitive strategy of differentiation well there was really nothing like it out there unique service, broad range of products and global reach. In addition, their target audience was quite diverse-on the buyer side you had everyone from hobbyists and collectors to the bargain hunters on the seller side you had antique dealers, casual sellers, mom-and-pop businesses selling unique items and finally sizeable well-known corporations liquidating their inventory. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale, buyers to bid on items of interest and all eBay users to browse through listed items in a fully automated way. The items are arranged by topics, where each type of auction has its own category.In terms of its core compentencies, eBay has both slick and globalized traditional person-to-person trading in the national and international arena, which had typically been conducted through such forms as garage sales, collectibles shows, flea markets and more, with their web interfac... ...ompetition. eBay has proven itself successful as the first to market-it should use its experience to be the first to market in places like India or Poland. Exhibit 1. SWOT analysis of eBayStrengthsBrand image efficiency to sell unique products/product diversitySheer volume of transactionsCommunity and feedback forumSafety featuresKeen acumen in managing the value mountain chainSenior managementStrong financials-revenue growth, profit margin, stock price, etc.First to marketWeaknessesInability to sell at high volumesSlower response to theme overloadFraud cases/nonpayment to sellersOpportunitiesValue chain partne rs/alliances/acquisitionsDeveloping nations going online Their wider view of market penetrationFixed price transactionThreatsTechnology threats such as viruses, power outages, system overloadLoss of market share in online auction industryRevenue/market share loss payable to fixed price auctionsHigh profile fraud cases/security breachesPolitical unrest, currency volatility in developing markets