Ebay the Recent (or Ongoing) Recession Has Case Study

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Ebay

The recent (or ongoing) recession has provided an excellent external opportunity for eBay, as the company has long offered many consumer products at discounted rates in addition to higher end auction items. The recession means that more individuals will be seeking bargains for many more expensive consumer items, and eBay can offer used or even new alternatives to paying full retail price for these goods. Growing Internet availability throughout the world is another significant opportunity, as more consumers are able to join eBay every day. At the same time, this increase in availability makes it easier for competition to surface, and this creates something of a threat for eBay. The recession has also reduced the overall demand for discretionary items, which includes pretty much everything eBay deals in.

2)

Internally, eBay is very strong in its knowledge and in the consistency of its operations, Having been in business for quite some time and largely perfected the Internet auction process while at the same time expanding the services and scope of the company, eBay is very solidly positioned to continue operating in a profitable and secure manner that any competitors would be hard-pressed to emulate.

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The company's size and industry standing are also barriers to innovation, however, which at this point in the company's development is a definite weakness that it possesses. Though the company was highly innovative when it first emerged, as was necessary due to the fact that it was essentially inventing its industry and business model as it evolved, there are numerous smaller niche competitors that have arisen that are proving more innovative than eBay in terms of creating value….....

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