Swot Analysis Ebay Asia

eBay Expanding into Asia John Kozloski BUSN412 Business Policy June 16, 2011 consequence Analysis eBay Expanding into Asia Company eBay Expanding into Asia Indus show Online auction off bridge Industry Company Website (www. ebay. com) COMPANY reason The founder of the online auction site eBay is a computer programmer Pierre Omidyar in San Jose, California, established on September 3, 1995. The essential function of eBay is online auctions and uses to reach a great range of individuals every(prenominal) over the world.The website took make quit quickly so Omidyar hired Jeffery Skolls as president to handle the twenty-four hour period to day operations. The former president of eBays Marketplaces, John Donahoe is the current president and CEO. Donahoe coupled the company in 2005 and managed to double the sugar and grosss for his unit. The company is posting a last(a) income of $1. 78 billion and revenue of $8. 54 billion for 2008, which is up from the posting of 2007 that a r a net income of $348 million and revenue of $7. 6 billion (Dess, 2010). Since its beginning in 1995, eBay has enjoyed strong revenue growth and was a dominate player in the online auction industry (Dess, 2010). SWOT ANALYSIS Strengths thither argon three main strengths to how eBay has been victorious harvest-homes, sense of community, and aggressive expansion. eBay had an array of product categories and trading platforms that offered a range of determine formats, such as fixed price (Dess, 2010). A sense of community, a reliance between vendees and sellers is the primary coil means to all of eBay sites and platforms.Third is its ability to aggressively expand to get by effectively and create a planetary trading platform (Dess, 2010). Weaknesses sensation of eBays major weaknesses is its unfitness to expand and get by in certain international marts (Dess, 2010). single example of this is their ability to expand into the Asiatic foodstuff place eBay has yet to meet the Asian population and as well as has I failure to compete with firms that are already thither. Opportunities eBay has plenty of opportunities the biggest being their ability to purchase firms that enhanced the overall appeal of eBay.Like PayPal, Rent. com, and Skype are just a few which brought opportunities to them. Threats The biggest flagellum to eBay is its competition. Some of their biggest competitors are amazon and Yahoo. likewise eBays has other threats aboard especial(prenominal) in Asia where they are currently move to expand with little success. This is due to their primary competition in Asia is well established. doorkeeperS FIVE FORCES MODEL Threats of freshfangled Entrants As pointed out in Chapter 2, technology allow for always accept a huge impact this industry.Since its establishment in 1995 technology has changed, it has broadened and expanded creating the everlasting threats of new entrants. Bargaining military force of Buyer The buyer power is lavish ly when there is a high concentration of buyers relative to suppliers (Dess, 2010). This could go either way for ebay. Bargaining Power of Suppliers The bargaining power of suppliers is greater when the threats may raise prices or reduce the character of purchased goods and services (Dess, p. 59). This is trying to say since the memorial tablet is solely based as an sell website.Substitute Products/ Services As other firms try to breach substitutes, it will be hard for eBay to uphold their aggressive advantage. Intense controversy As stated in the graph in our text book page 63, rivalry is intense when competition is high and growth rate of the industry is slow. STAGETY eBay has any(prenominal) basic strategies that it follows to make it successful passim the industry. First it has no time limitations a bid whoremonger be primed(p) at any time. Second there is no geographical restriction sellers and buyers can partake from anywhere.Last they have a grown network econom y having one of the largest digit of bidders and sellers (Dess, 2010). ISSUES AND CHANLLENGES FACING THIS COMPANY A emulous advantage eBay has is the fact they been around for virtually time and are well established. One of the major challenge that eBay is facing is their inability to be successful in the Asian food market place. It has had numerous attempts to penetrate this market and failing every time. They also have some competition from firms like Amazon and Yahoo. As well as Asian based markets places, GMarket and Taobao.COURSE OF ACTION RECOMMENDED The problem that eBay will always have is that technology is neer ending. They will widen to see the market share develop and change. Here is some course of actions I would take to continue to be successful 1. Creating options and targeting distinct market time outs would enable eBay to distinguish itself from competitors (Dess, 2010). 2. I would capture to develop a department that would delimit in Asian affairs. 3. I wo uld also advice the purchasing of one of the Asian firms. sagaciousness I found this case get interesting and easy to grasp.I am a big supporter of eBay and use it daily. I believe they have found their niche here in the states. However, I did picture it interesting how they are struggling in the Asian markets. Developing the Porters Five Forces computer simulation and looking at ways to develop strategies to gain momentum to be successful. I can see where companies of a analogous firm would be easy to cash in ones chips and constantly be a paster in their side. References Dess, G. , Lumpkin, G. , & Eisner, A. (2010). Strategic counsel (5th ed. ) New York McGraw-Hill Irwin.