Ebay E-Bay Environment the Environment Term Paper

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Competitors are a special category of eBay's microenvironment's components. EBay's most important direct competitors are Amazon Inc., Google Inc., and Yahoo Inc. The companies are quite similar, they have similar sizes and number of employees, or quarterly revenues growth level. However, there is little threat of new entrants on the market, as eBay is at a very high level that is very hard to be attained by smaller new entrants, requiring substantial initial costs that are not available for smaller companies trying to enter on this market. However, eBay may have to deal with such issues in the Asian region, where the company is not as strong as it is in the United States.

EBay's macro-environment is consisted of the demographic, economic, technological, cultural, political, institutional, and natural environment. The economic environment is the most important one, for both the United States and the Asian region.

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Unlike the Asian unstable economic environment discussed above, the United States' economic environment is more stable, as it presents an increased growth potential, it ensures fiscal sustainability and reforming taxation (OECD, 2007). For both regions, the demographic environment is favorable for eBay's activity.

The most important threat that eBay is currently facing is represented by Amazon Inc., the company's most important direct competitor. Amazon is developing more and more, and it will reduce the distance between the company and eBay. EBay's opportunities are represented by the company's possibilities of expansion worldwide.

Reference List

Sharp Growth in Asia's labor force poses economic, environmental challenges - UN (2007). UN News Centre. Retrieved August 29, 2007 at http://www.un.org/apps/news/story.asp?NewsID=23492&Cr=work&Cr1=.

Economic Survey of the United States (2007). Organization for Economic Cooperation and Development. Retrieved August 29, 2007 at http://www.oecd.org/dataoecd/56/40/38665203.pdf......

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