in you own words please complete this zero plagiarsm 1. First, research and crea
ID: 2811339 • Letter: I
Question
in you own words please complete this zero plagiarsm
1. First, research and create a Porter’s Five Forces Model of eBay in Word, Excel, or PowerPoint format. Use external sources to assist in populating your model.
Next, report and analyze your findings, touching on the following questions:
1. What does your five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces? Are the competitive pressures facing eBay and other online auction companies conducive to earning good profits? Why or why not?
2. Based on your analysis of the industry and eBay’s situation, what problems and issues does eBay’s top management need to address? Which ones are top priorities?
3. What do you see as the key success factors for organizations in the online auction industry?
Explanation / Answer
eBay is one of the oldest and biggest company operating in e-commerce industry. The business growth and success is the result of effective implementation of strategy to beat competitors in the industry.
The five force model given by Michael E. Porter is considered as a vital source to analysis external forces and their impact on the business.
Force 1: Bargaining power of buyer: In e-commerce business the power of buyer is very high , due to close competition
Force 2: Bargaining power of supplier: Supplier power is less
Force 3: Threat of substitute : is same for all players in industry, as selling same types of products
Force 4: Competitive rivalry in industry: It is growing industry ,mainly in developing economy , make the force between medium to high
Force 5: Threat of new entrants : New entrants are always welcome , as it creates awareness and penetration.
Answer 1) The environment is conducive to earn profit as huge market are un tapped on globe.
Answer 2) The top management should consider Competitive rivalry in industry and Threat of new entrants as one of the most important factors. As new comers had took over the business of eBay in many countries, for example eBay was taken over by flipkart in India.
Answer 3) The great bargaining power given to buyer is the key of success .
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