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Swot Analysis Of Ebay

785 Words4 Pages

Step 1. Situation Audit
Strengths: -
• EBay is one of the leading brand global in for online auction and the company is having more than 100 million users to buy and sell.
• EBay had a huge capital to invest.
• EBay localized its websites with local language and currencies and providing local information’s.
• EBay had wide variety of products, low inventory cost and low capital requirements.
• A professional team that runs the company.
• EBay had well experienced and a professional team that runs the company.

Weakness:-
• Customer Service and Support-eBay is lacking in their customer service area.
• EBay gave up 51% share of eBay EachNet to Tom Online.
• EBay didn’t have a standardize payment method which is reliable to the customers.
• EBay …show more content…

is an American multinational corporation and e-commerce company founded by Pierre Omidyar in 1995 headquarters in San Jose, providing consumer-to-consumer and business-to-consumer sales services via the internet. EBay first set foot in China in 2002 by acquiring 33% interest in EachNet, a domestic online auction company, followed by a full acquisition in 2003 and rebranded into EBay EachNet. EBay was fully aware about different regions in china have imbalanced economic and technological development, slow internet speeds and high internet access cost and the absence of a reliable credit system for online …show more content…

The extra fees made the customers to give more preferences to the competitors, this lead to gradual decrease in users in eBay EachNet. EachNet executives, including CEO Shao Yibo, had left in droves after the acquisition in 2003 and Decision-making at eBay EachNet became centralised, leading to inflexibility and a lag in response to the changing Chinese market.
Trust is one of the important factor in china but eBay failed to maintain the trust between the company and buyer and between the buyer and seller due to the lack of an adequate legal system or other formal means of dispute resolution and the eBay was fairly new in the Chinese market, consumers were not much aware of the brand while competitors had good image over the market.
When EBay first time entered to Chinese market, they failed to provide security every step of the way during a sales transaction to ensure that consumers feel comfortable making their purchases. By the time the competitors had ensured and trusted payment systems which is AliPay system and escrow system made the users felt more confident in paying them. Although eBay EachNet introduced an escrow later, it was not able to regain its lost market

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