eBay is an international online marketplace with a global customer base of 233 million. It is a multibillion business operating in 37 countries. There are millions of items listed on eBay across thousands of categories, including antiques, toys, books, computers, sports and electronics, amongst many others.
eBay SWOT analysis 2013
Strenghts
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
Weaknesses
1. High fees
2. No further growth strategy
Opportunities
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
Threats
1. Online security : PayPal stores online shoppers’ personal information, such as bank account details, which is a target for online thefts. The more online customers PayPal has, the more attractive as a target for identity thefts it becomes.
2. Regional low cost online retailers : Regional low cost online retailers could outrival eBay on faster and cheaper shipping, more localized product offering and better knowledge about home market.
3. Increasing competition from Amazon : Amazon’s online presence has significantly increased and now Amazon’s marketplace is just behind eBay’s.
4. Exchange rates : eBay receives a part of its income from foreign operations. The profits that are sent back to US have to be converted into dollars and may be affected by the exchange rates, especially when the dollar is appreciating against other currencies.
Sources :
1. eBay (2013). Company overview. Available at: http://pages.ebay.co.uk/aboutebay/thecompany/companyoverview.html
2.
3. eBay (2013). Investors. Available at: http://investor.ebay.com/annuals.cfm
4. Interbrand (2013). Best Global Brands in 2012.