Ebay Swot Analysis
EBAY SWOT ANALYSIS
STRENGHTS | * Leading global brand for online auctions the brand name is more and more recognized around the world (brand recognition). EBay is expanding its international presence. Consequence : growth of profit * Ability to attract buyers * Volume of transactions * Selection of goods * Customer service and security * PayPal: PayPal has helped eBay to increase satisfaction among customers thanks to the services it offers. The share of PayPal in eBay’s turnover represents 36 percent. * Acquisitions provide new business strategy opportunities. eBay has bought several firms (Skype, PayPal) in order to increase the number of services it offers to its customers Growth of profit | WEAKNESSES | * Some acquisitions do not produce the expected results (cf. the acquisition of Skype in 2006: problems concerning the integration of Skype) * 2008: decrease in net transaction revenues. Reasons: erosion of eBay’s core costumer base / lack of innovative power (which was a strength before as eBay was known for having innovative skills) * Share of the US e-commerce (strong decrease) | OPPORTUNITIES | * New and emerging markets (Example: China, India Asia has the largest number of internet users). In these countries some consumers are getting richer and have more free time: as a consequence they can spend time on the internet and buy items on eBay. * “Older” markets such as Europe and USA also provide good opportunities (in the US, 70% of the population uses the internet). There are still many potential clients. Nowadays, the life of a product is getting shorter and shorter. So, instead of putting a huge amount of money in it, people will prefer to buy in on sites such as eBay, where they will get it cheaper. * Increase in internet’s users (in 2008: 1.4 billion and in 2012: 1.9 billion) * Half of Internet users made online purchases in 2008 * Access to the Internet by mobile phones * Growth of e-commerce (online
STRENGHTS | * Leading global brand for online auctions the brand name is more and more recognized around the world (brand recognition). EBay is expanding its international presence. Consequence : growth of profit * Ability to attract buyers * Volume of transactions * Selection of goods * Customer service and security * PayPal: PayPal has helped eBay to increase satisfaction among customers thanks to the services it offers. The share of PayPal in eBay’s turnover represents 36 percent. * Acquisitions provide new business strategy opportunities. eBay has bought several firms (Skype, PayPal) in order to increase the number of services it offers to its customers Growth of profit | WEAKNESSES | * Some acquisitions do not produce the expected results (cf. the acquisition of Skype in 2006: problems concerning the integration of Skype) * 2008: decrease in net transaction revenues. Reasons: erosion of eBay’s core costumer base / lack of innovative power (which was a strength before as eBay was known for having innovative skills) * Share of the US e-commerce (strong decrease) | OPPORTUNITIES | * New and emerging markets (Example: China, India Asia has the largest number of internet users). In these countries some consumers are getting richer and have more free time: as a consequence they can spend time on the internet and buy items on eBay. * “Older” markets such as Europe and USA also provide good opportunities (in the US, 70% of the population uses the internet). There are still many potential clients. Nowadays, the life of a product is getting shorter and shorter. So, instead of putting a huge amount of money in it, people will prefer to buy in on sites such as eBay, where they will get it cheaper. * Increase in internet’s users (in 2008: 1.4 billion and in 2012: 1.9 billion) * Half of Internet users made online purchases in 2008 * Access to the Internet by mobile phones * Growth of e-commerce (online