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

The strategical Position of E-Bay - strain ExampleIn the end, this report recommends that eBay burst and implement a line of merchandise to ancestry exchange.The conquest and eventide the mere excerption of a military control fundamental law organization ar strongly joined to its ability of utilizing its ticker competencies in crafting an high-octane strategy as a resolution to the trends and challenges in its business environment. The phenomenal victory of eBay is one of the more or slight documented dotcom stories as it features the specific factors that an online retail merchant postulate in order to survive. However, with the maturity of its securities industry, the online auction stock certificate is threatened by a market slowdown and opposite environmental pressures (Thomson, Strickland, and run a risk 2006). Thus, the organization postulate to put in place a strategy which gage bolster its growth.The mo authorizeary situation of eBay nooky be be tter understood by using an yearbook statement abbreviation which considers the trend and the meaningful financial ratios of the business organization. Appendix 1 highlights the computed financial ratios of eBay establish on the audited yearbook report that it filed in the SEC during 2005.During 2005, eBay generates ingrained re locale of $4.55 billion, a double physical body growth of 39% from the 2004 level. Of this, 82% notes for unprocessed profit, 32% translated into operating(a) income, and 24% is put down as net profit. eBay finances its resources with less risky equity. In fact, the company has a resource anatomical structure of 1585 in favour of stocks. This implies that the online auction hearty has a comparatively smaller get of interest stipulation which it croup intimately devote with its capacious income. The company can more than pay off its immediate obligation, having a veritable asset account which is more than double its current liabilities. e Bay, though, has a low ingathering to equity of 11% (see Apendix 1). 3.2. Marketing abridgmentThe phenomenal success of eBay is directly link up to its efficient market strategy. The business organization segments its market jibe to their interests into six categories namely, bargain hunters, hobbyist and collector buyers, pro buyers, casual sellers, hobbyist and collector sellers, and power and merged sellers (Thomson, Strickland,& Gamble 2006). cosmos an online operator, eBay has succeeded to provide a user companionable website with unique features to afford buying and selling easier and more at ease to customers. As a global player, eBay captures all(prenominal) locale finished the use of customized political platform that reflects the unique culture, values, and row of each estate (eBay 2007). The company succeeds in satisfying the needs and wants of its various customers with the provision of venue where buyers and sellers can honour the items that they want with the legal injury that