Nobody downloaded yet

The Strategic Position of E-Bay - Essay Example

Comments (0) Cite this document
This report aims to recommend the most efficient strategic direction that eBay can take in order to cope with its maturing market. In order to do so, it will look at the strategic direction of the company through the use of strategic management techniques…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
The Strategic Position of E-Bay
Read TextPreview

Extract of sample "The Strategic Position of E-Bay"

Download file to see previous pages In the end, this report recommends that eBay develop and implement a business to business exchange.
The success and even the mere survival of a business organization are strongly linked to its ability of utilizing its core competencies in crafting an efficient strategy as a response to the trends and challenges in its business environment. The phenomenal success of eBay is one of the most documented dotcom stories as it features the specific factors that an online retailer needs in order to survive. However, with the maturity of its market, the online auction store is threatened by a market slowdown and other environmental pressures (Thomson, Strickland, and Gamble 2006). Thus, the organization needs to put in place a strategy which can bolster its growth.
The financial situation of eBay can be best understood by using an annual statement analysis which considers the trend and the significant financial ratios of the business organization. Appendix 1 highlights the computed financial ratios of eBay based on the audited annual report that it filed in the SEC during 2005.
During 2005, eBay generates total revenue of $4.55 billion, a double digit growth of 39% from the 2004 level. Of this, 82% accounts for gross profit, 32% translated into operating income, and 24% is recorded as net profit. eBay finances its resources with less risky equity. In fact, the company has a resource structure of 15:85 in favor of stocks. This implies that the online auction firm has a relatively smaller amount of interest obligation which it can easily pay with its huge income. The company can more than pay off its immediate obligation, having a current asset account which is more than twice its current liabilities. eBay, though, has a low return to equity of 11% (see Apendix 1).
3.2. Marketing Analysis
The phenomenal success of eBay is directly linked to its efficient marketing strategy. The business organization segments its market according to their interests into six categories namely, bargain hunters, hobbyist and collector buyers, professional buyers, casual sellers, hobbyist and collector sellers, and power and corporate sellers (Thomson, Strickland,& Gamble 2006). Being an online operator, eBay has succeeded to provide a user friendly website with unique features to make buying and selling easier and more convenient to customers. As a global player, eBay captures each locale through the use of customized platform that reflects the unique culture, values, and language of each country (eBay 2007). The company succeeds in satisfying the needs and wants of its various customers through the provision of venue where buyers and sellers can find the items that they want with the price that ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Strategic Position of E-Bay Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
The Strategic Position of E-Bay Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from
(The Strategic Position of E-Bay Essay Example | Topics and Well Written Essays - 2500 Words)
The Strategic Position of E-Bay Essay Example | Topics and Well Written Essays - 2500 Words.
“The Strategic Position of E-Bay Essay Example | Topics and Well Written Essays - 2500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Strategic Position of E-Bay

E-bay in the domain of business information system

...?E-bay in the domain of Business Information System By Table of Contents E-bay in the domain of Business Information System MIS Technology and possible Impacts 4 EBAY 5 Technology Five Forces 6 Management Information Systems (MIS) at Ebay 8 Business to Customer with Information Technology 9 Importance of Information Technology for E-Bay 10 B2c Business Framework of Ebay 11 Recommendations for Improving EBay Business 12 Website Interfaces for EBay 12 EBay’s Websites Information Content 12 The use of Marketing strategies for EBay 13 EBay’s Working Style 14 Use of Social Networking Sites for Improving EBay’s Business 14 Decision Support System (DSS)to Improve Decision Making Power at EBay 15 Conclusion 16 References 17 Introduction... ...
15 Pages(3750 words)Assignment

SABMiller's Strategic Position by 2011

...? Strategic Management Task: Company's Strategic Position by Introduction SABMiller is a globally renowned corporation that endears itself as an excellent beer producer and renowned bottler for handful corporations with a global spread. The prime dealing of the organization is the production of beer, malts and an assortment of soft drinks, in particular, the carbonated archetypes. The company is reputable for a number of varied global brands that include Urquell, Peroni Nastro Azzuro, Miller genuine draft and an equally enormous base of local brands that serve its dissimilar macro and micro marketplaces spread across the globe. These localized brands include Miller Lite, Aguila, Tyskie...
9 Pages(2250 words)Essay

E-bay as my favourite website

...? E-bay as my favourite website My favourite Internet website is e-bay, an online marketplace where objects of all types can be sold. The specific website operates similar to an auction with the difference that all phases of the transaction are developed online (E-bay, corporate website, info). The company that developed the website is E-bay Inc, based in San Jose of California (USA). E-bay was created in 1995, with a different name, AuctionWeb, the website’s name was changed to E-bay in 1997 (E-bay,...
2 Pages(500 words)Essay

Internatioanl Manangment: E-bay in Japan : strategic and cultural Missteps Discuss

...? EBAY in Japan: Strategic and Cultural Missteps s: Executive Summary EBay Inc. is a multinational American based consumer-to-consumer internet company with its headquarters in San Jose. Founded in 1995, it staked its claim as one of the success stories related to the 90s internet bubble. EBay’s current strategy involves international expansion that has seen it expand into over 24 countries, including Japan. Since eBay entered Japan in the year 2000, it began to struggle hard for the place under the sun as its main rivals were already present at the market. By late 2001, most analysts were of the idea that eBay Japan needed to admit failure and sell its stake to a larger local player. This paper seeks to find out the cultural... preferring...
8 Pages(2000 words)Essay

Volkswagen Strategic Position

...? Strategic position analysis Contents Contents Introduction 4 Volkswagen in Greater China: Analysis of strategic position 4 Identification of strategies adopted by Volkswagen 9 Analysis 12 Evaluation 13 PESTEL Analysis 13 Political 13 Economic 14 Social 15 Technological 15 Legal 16 Environmental 16 Porter’s Five Force 16 Bargaining Power of Suppliers 16 Bargaining Power of Buyers 17 Threat of Substitute of products 17 Rivalry among existing firms 17 Recommendations 19 Conclusion 19 Recommendations 19 References 20 Bibliography 21 Introduction The project has been done to conduct a strategic position analysis of Volkswagen. Volkswagen...
18 Pages(4500 words)Essay

Guantanamo Bay

...Guantanamo Bay Client's 2 December 2009 Guantanamo Bay is located at the southern eastern end of Cuba; to be precise it is a bay which lies in the Guantanamo province of Cuba. This Bay is the largest harbor in Cuba on the south side of the island. In the year 1903, a treaty by the name Cuban-American treaty was signed under which the Americans took control of this Bay, in other words the US took over the lease of the place. There are differences at this moment; the Cuban government considers the US to have illegally occupied the land. This paper will throw light upon the Guantanamo Bay, a comprehensive analysis of the current situation...
7 Pages(1750 words)Essay

Strategic Position of McDonalds

...McDonalds: Strategic Position Introduction MacDonalds Corporation is the largest network of hamburger fast food restaurants headquartered in the United States. The company was founded by brothers Richard and Maurice McDonald in 1940 and currently the organisation has a presence in 119 countries. Franchisees, affiliates, or the corporation itself run its restaurants. The firm’s main sources of revenues are rent, royalties, and fees from franchisees and sales revenues from company-operated restaurants. The corporation’s product lines include hamburgers, chicken, cheeseburgers, french fries, soft drinks, and desserts. The company achieved a 27% revenue growth over the three years ending in 2007 (Seeking...
5 Pages(1250 words)Assignment

Strategic Position of Starbucks

...Strategic Position of Starbucks Table of Contents Strategic Position of Starbucks 1 Porter’s Generic Strategies 2 Bowman’s Strategy Clock 3 Perceptual Mapping 5 Key external drivers and its effect on Starbucks 7 Adding Value to the Current Strategic Position 10 Conclusion and Sustainability of Starbucks 13 Reference 14 Introduction Starbuck is a US based coffee chain company. It operates in more than sixty countries with a total of more than more than 20,500 stores worldwide. The company was established in 1971 in Seattle.Starbucks stores offer coffee beverages, cakes and bakery products. Starbucks is best known for their service and in house ambience (Starbucks, 2014). As of 2014 the company has made revenue of $14.89 billion... which...
12 Pages(3000 words)Essay

Analysing strategic position for SMEs

...ANALYZING STRATEGIC POSITION FOR SMES Introduction The year proved to be a decent year but somehow difficult formany SMEs. Three construction companies have been considered, their plans for the year ahead would be seen, and the challenges they expect to face as well as the opportunities they will exploit. The construction companies are; AR Demolition, Lakes mere, and Van Elle. As the year 2015 begins, many SMEs are looking forward to the year ahead with optimism that is cautious. In the paper, the Van Elle construction company will be discussed in detail (Johnson, Scholes, and Whittington, 2011). Part 1 Identifying and reflecting the company’s business direction and focus, Basing on the article the business direction and focus... of the...
8 Pages(2000 words)Essay

The Strategic Position of Apple

...24, 2015]. Utrilla, P. N. C & et. al., 2012. How Does Strategic Choice Affect Business Results? A Case Study of Mutual Guarantee Societies. International Journal of Business and Management Vol.7, No. 7, pp. 51-57. Voropajeva, M., 2012. Implementation of the Differentiation Strategy in Café Industry in Turku. International Business Degree Program. [Online] Available at: [Accessed May 24, 2015]. Weber, W. & Polo, E. F., 2010. Evolution of Generic Competitive Strategies and the Importance of Michael E. Porter. Revista de Gestão USP, São Paulo, Vol.17, No. 1, pp. 99-117. Zemsky, P. & Adner, R., No...
13 Pages(3250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Strategic Position of E-Bay for FREE!

Contact Us