Ebay Accounting Analysis

In: Business and Management

Submitted By kalaboli
Words 1886
Pages 8
1. Ebay Strategy Analysis Strengths | Weaknesses | Global Leadership for Online AuctionsBusiness ModelCustomer Relations ManagementPaypal | Need to Overcome Fraudulent TransactionsVulnerable to system breakdownsLack of New Ideas | Opportunities | Threats | New and Emerging MarketsMarket Penetration | CompetitionConsumer ConfidenceUncontrollable Cost |

Strengths

Global Leadership for Online Auctions
Ebay is a giant marketplace used globally to buy and sell things of wide variety around the world. This is the top of the mind way of selling or buying things in the internet. No other companies can even come second to Ebay when it comes to providing a place where sellers and buyers meet. Business Model
The company has essentially zero cost. They do not have warehouses to store goods, nor do they have employees to pay to maintain a store. The business model is simple and effective. People can sign up and just start buying or selling in an auction type setting. Unlike the other auction sites where people feel that they are not getting ripped of their money, the auction in ebay is transparent. You don’t pay for a price over your valuation of the item.

Customer Relations Management
Ebay can costlessly collect data from buyers and sellers because they have to sign up for an account before they can make transactions. This data is a valuable asset towards understanding people’s attitudes in buying or selling. Buyers and sellers can leave feedback to one another (C2C) thus reducing the information assymetry. This is a crucial advantage of ebay compared to other companies who needs to pay just to collect data.

Paypal
The acquisition of paypal has helped the ebay eliminate the risk in transacting online. Buyers feel safer using paypal to buy things in the internet than putting their bank account information directly. It is also a great way to get paid…...

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