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Business Strategy Analysis: A Case Study of eBay Assignment Help

Examining Business Strategy and the Five Forces Model: The Challenges Facing eBay; Time for Changes in Strategy? This week we look at strategic thinking in the business environment. Your assignment this week is to: 

1. First, research and create a Porter’s Five Forces Model of eBay in Word, Excel, or PowerPoint format.Use external sources to assist in populating your model.

Next, report and analyze your findings, touching on the following questions: 

1. What does your five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces? Are the competitive pressures facing eBay and other online auction companies conducive to earning good profits? Why or why not? 

2. Based on your analysis of the industry and eBay’s situation, what problems and issues does eBay’s top management need to address? Which ones are top priorities? 

3. What do you see as the key success factors for organizations in the online auction industry? Here are the paper requirements: 

- Review and follow the grading rubric Click for more options Click for more options 

- Develop a clear introduction, body and conclusion. Use paragraph format and transitions. Focus on quality of writing and content. A strong paper will be a minimum of 2 pages (not counting title, reference, or appendix pages). 

- Use APA format with a title page, in-text citations and references. No abstract required. 

- Research and cite at least 2 credible sources in APA format.  

- Upload your assignment to the SafeAssign link by Sunday at 11:59 pm (EST) 

- Place model in appendix or as separate PPT submission. Watch Video The Five Competitive Forces That Shape Strategy.

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Introduction

Market analysis of a business organisation is considered as one of the procedures to review organisational resources, scanning activities of the organisation as well as linking with the organisation and detecting strengths and capabilities. In the current study, an internal environment analysis of eBay is performed that would help to understand the strengths and weakness of the organisation. Besides, the report would assist in selecting the scopes to be tapped in line with key success factors in the online auction industry.

Five force analysis of eBay

Hardy and Norgaard (2016) stated that the five forces of Porter are used to determine analytically about how much a company will be able to maintain its profit along with its dominance in the market. This tool helps even the management official of the company to plan out certain strategic action both inward as well as outward in nature.

1. Supplier Bargaining power

It is true that there are many suppliers of eBay not just in a specific country but throughout the world, but, often it is seen that most of the suppliers lack a proper bargain deal with eBay. There is an obvious reason for that, as the company can change its market supplier very easily which might not be the case with the suppliers (Kemper & Breuer, 2015). They don't have the liberty on most of the cases so that they could change whenever they want to.

2. Customer Bargaining power

Here too because of the fact that there is only two world-renowned brand in online auction i.e Amazon and eBay, both have an equal share of the market and enjoys a lot of loyalty from their customers, there is not that much scope for the customer to bargain (Elfenbein et al., 2015). EBay is generally purchased by the customer in a very small scale which also affects their sense of the cost toward the product. There is a very little scope for retailers in getting a good bargaining power but that will only happen if they are acquiring large volumes of the product.

3. New Competitor

There is very little chance for any new competitor to enter the beverage industry. Amazon and EBay have been the two biggest and financially strong brand since the 19th century and there is a very good reason for that (Klein et al., 2016). Entering the market at the scale of eBay will require an enormous amount of capital. The brand value is not built overnight, so there has to be a vision that has to be there in any new competition considering the fact that they might not succeed in their venture.

4. Immediate Rival

There is no other rival in the market share of eBay other than Amazon. However, due to the similarity and presentation of these products consumers don't make that much of a difference between the two companies which control more than a third of the market share among them.

5. Alternative for buyers

There has been a concern in this department to because there has been a steady rise in many different sectors of the online auction industry. There have been many new entrants in the juice market as well (Gregg & Parthasarathy. 2017). Investigation of model would be useful in this viewpoint. It is essential to comprehend whether there is requirement for preparing not through breaking down the marketing model. Furthermore, the elements that are significant for the professional error related issues are required to dissect utilizing execution model. Additionally, it is critical to discover whether there is ability inadequacy among the staffs or not. Introduction of abilities satisfactory for the ideal execution is required to examine.

Problems and issues in eBay

It will be minimised due to winter weather that will discourage consumers from investing in the online auctions. However, the website of the organisation has poor ratings (Nguyen & Shirai, 2015). Several organisations are dealing with business in the industry. One of the weaknesses is the traffic in the network; more people get busy in product viewing all the time unnecessarily so it can create traffic in the system for serious buyers.

Amazon is one of the market leaders in home enhancement as well as online shopping (Silva et al., 2018). As the competition in high in the e-commerce industry, so both of the company needs to try and learn more about the strategies to makes their visibility in the global market

Key success factors in the online auction industry

A taste of the customer keeps changing, for instance, people prefer using eco-friendly products, it is essential to focus on identifying the ongoing demands of the organization (Lampinen & Brown, 2017). Hence, it will expand product or service lines in raising sales as well as increases the portfolio of the products. In order to open online eco-stores, it is required to integrate the advanced ICT in processing business to enhance efficiency as well as effectiveness like having an ERP system.

Conclusion

The study concludes that strategic planning helps to find the requirements of the business and the relationship with potential customers. Internal and external marketing analysis integrates with maintaining environmental balance in the industry. In the industry, there are many types of changes and challenges for everyone. The internal analysis of the organization would be helpful to highlight the areas of interest regarding marketing position in order to understand as well as prioritize the advantages. In addition, the assets, skills liabilities and attitudes are analysed in the current study that helps to identify the key factors and recommend the management to take effective steps for retaining its position in the market.

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