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Ebay swot summary

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  • 1. eBay’s SWOT business concepts
  • 2. Network economy
    Attention economy
    Gift economy
    eBay’s use of economies
  • 3. eBay’s universal global trading platform allows ample “economic opportunity” for businesses and individuals
    Effective auction based business model: eBay has demonstrated a sturdy market position with “strong brand value”. eBay’s focus is directed at the “number of users and number of product listings” (Datamonitor, 2008)
    eBay commerce strengths
  • 4. Network effects: multiple product listing by different sellers and buyers.
    On eBay you can find virtually anything. eBay has caught on the growing niche market of used goods, resulting in a “strong network effect” (Liebowitz, 2002, p.13)
    eBay strengths
  • 5. Network economy: eBay’s ability to integrate segments such as PayPal in 2002 and Skype in 2005 has enhanced the company’s means for development and growth.
    The PayPal system helped to facilitate payments and money transfers and Skype is used to help unite buyers and sellers through market place communication, which resulted in customer base growth and increased revenue. (Datamonitor, 2008).
    eBay commerce opportunities
  • 6. Attention economy : “gaining eyeballs” through interactive advertising; eBay acquired its own “advertising service” allowing third parties to purchase advertising text from eBay to increase revenue (Datamonitor, 2008).
    The rise of online transactions together with the need for secure transit of monies, makes the reliance on PayPal as alternative payment method more important.
    eBay opportunities
  • 7. Gift economy: eBay’s community aspect helped gained users from over 150 markets. In 2009 eBay reached “88 million active users” and approximately “150 million listings” globally.
    Growth of customer base has played a significant role in company expansion. eBay has a presence in 39 countries which provides a “competitive advantage” ” (Datamonitor, 2008).
    eBay strengths
  • 8. eBay has a history of being caught up in various prolonged legal proceedings due to liability revelation. Imitation items were the predominant subject of complaints filed against eBay.
    “Insufficient screening process to control counterfeit products” (Datamonitor, 2008).
    eBay weaknesses
  • 9. “Internet fraud” is a major concern for eBay due to its exposure online
    Threats increase company costs and affects customer trading confidence.
    Rising "business risks” due to “technological obsolescence and reliance on third parties for licences” (Datamonitor, 2008).
    eBay commerce threats
  • 10. eBay
    For references, please refer to reference page 10