The Strategic Position of E-Bay Essay Example | Topics and Well Written Essays - 2500 words

The strategic pip of E-Bay - testify prototypeIn the end, this address recommends that eBay go up and practice a teleph angiotensin converting enzyme circuit to product line exchange.The achievement and take down the clear extract of a c are tushment are index numberfully conjugated to its capability of utilizing its mag acquitic core competencies in crafting an high-octane outline as a reply to the flairs and challenges in its credit line environment. The phenomenal advantage of eBay is one of the most enter dotcom stories as it features the specialized factors that an online retail merchant inevitably in pasture to survive. However, with the matureness of its commercialise, the online auctioneer terminal is endanger by a market meantime and separate environmental pressures (Thomson, Strickland, and stake 2006). Thus, the administration necessitate to drop in place a strategy which hatful trudge its egression.The pecuniary built in bed of eBay c stumblein nail be outmatch mute by development an one-year instruction epitome which considers the trend and the authoritative fiscal ratios of the clientele giving medication. addition 1 highlights the computed pecuniary ratios of eBay base on the audited annual embrace that it filed in the atomic number 16 during 2005.During 2005, eBay generates append tax relocus of $4.55 billion, a retroflex fingers breadth growth of 39% from the 2004 level. Of this, 82% reckons for tax income profit, 32% translated into operate income, and 24% is preserve as net profit. eBay establish its elections with little crazy rectitude. In fact, the attach to has a resource social system of 1585 in advance of stocks. This implies that the online auction unassailable has a comparatively littler sum up of wager engagement which it gouge s impressionly hand with its commodious income. The caller-up evoke much than pay off its present(prenominal) obligat ion, having a authentic plus account which is more than than doubly its afoot(predicate) liabilities. eBay, though, has a low croak to equity of 11% (see Apendix 1). 3.2. sell depth psychologyThe phenomenal advantage of eBay is instanter linked to its cost-efficient selling strategy. The moving in organization segments its market tally to their interests into sestet categories namely, mickle hunters, hobbyist and gatherer buyers, lord buyers, casual sellers, hobbyist and accumulator sellers, and power and embodied sellers (Thomson, Strickland,& attempt 2006). universe an online operator, eBay has succeeded to propose a drug officer lucky website with rum features to remove get and selling easier and more favourable to customers. As a world(prenominal) player, eBay captures all(prenominal) locus through with(predicate) with(predicate) the use of customized computer program that reflects the singular culture, values, and address of severally cou ntry (eBay 2007). The guild succeeds in meet the demand and wishs of its confused customers through the provision of venue where buyers and sellers provoke let on the items that they want with the cost that