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Ebay - Business report - Research Paper Example

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is regarded as an American based multinational business corporation, which started its business in the year 1995 as a site of online auction. With the growth of the business, the company today performs varied functions that include buying as well as selling wide…
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Ebay - Business report
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Ebay - Business report

Download file to see previous pages... With the varying market conditions and the preferences of the customers, the business of eBay developed significantly in recent times. This can be acceptable with reference to the fact that the company reported a profit of $4.4 billion in the year 2014, which was beyond its expectation (BBC, 2014). From the perspective of providing an e-business background of eBay, it must be mentioned that the company utilises a service of online payment named PayPal, which facilitates and eases in making transactions on behalf of the sellers as well as the buyers (Bensinger, 2012).
Prior to conducting a detailed e-marketing study on eBay, it is essential to obtain a brief idea about the external setting of the company. With this concern, the theoretical structure of Porter’s five forces is taken into concern for analysing the external situation of the company. From the analysis, it is evident that eBay faces a moderate level of threat relating to the entrance of new market players in the industry, as there persists lower levels of entry requirement. Apart from this, the buyers’ and suppliers’ bargaining power are deemed to be high and moderate respectively owing to the reason that different e-commerce companies offer parallel products and/or services as that of eBay and the suppliers remain much eager to sell by making effective use of well-established online sites. Finally, eBay faces low level of threat of alternatives or substitutes, as the company offers certain attractive features to the potential customers that entail auctions and buyer protection among others. Apart from the above discussed aspects, the company also faces high level of threat from the existing business market competition in the similar industry due to the presence of already existing companies like Alibaba and Amazon among others (Hao, 2013).
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