• Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose. Assess how these segments affect the corporation you chose and the industry in which it operates.
EBay Inc. Is one of the leading internet companies in the world. Founded in 1995 by French Iranian Pierre Omidyar, eBay is employing more than 15500 people while generating total revenue of 11.65 billion dollars as of 2011 (eBay Inc 2011 Results). The company was founded in San Jose, California with a vision of connecting people rather then sells them goods. The company has now about a billion registered users and is the most popular shopping site on the ...view middle of the document...
• Skype. Skype, a fast-growing Internet communication offering, allowing people everywhere access to unlimited voice and video communication for free between the users of Skype software. Skype is available in 27 languages and is used in almost every country around the world. Skype was acquired by eBay in 2005
• Shopping.com. Shopping.com pioneered online comparison shopping and is one of the fastest growing shopping destinations on the Internet. It was acquired by eBay in 2005
• Rent.com. Rent.com is the most visited online apartment listing service in the United States. It was acquired by eBay in 2005. In 2009, Skype was sold and eBay retained a minority investment on it while in 2011, the giant Microsoft acquired Skype for the sum of $8.5 billion.
• Online Classifieds. Designed to help people meet, share ideas, and trade on a local level, eBay’s online classifieds websites are available in hundreds of cities and regions around the world.
• StubHub. StubHub is a ticket marketplace, enabling customers to buy and sell tickets at fair market value to a vast selection of sporting, concert, theater and other live entertainment events, even those that are “sold out.” It was acquired by eBay in 2007. (Hellriegel, D., & Slocum)
This, eBay has not only managed to rule the internet trade platform but smartly invested in the acquisition of other key companies helpful to its business. This makes it provide a stronger and a more powerful online marketplace and making it operate in three key sectors: marketplace, payments and communication. However, eBay slowly retired from the communication business and focused mainly on marketplace and payments.
The market in which eBay operate is a monopolistic competition in which the risk of entry by potential competitors is relatively high due to low barriers to entry. This competition is international as competitors can launch new sites at a nominal cost using commercially available software, this technological segment is what is at the core of the success of this corporation. EBay enjoys the luxury to have a broad range of products and thus there are more opportunities for new competitors to enter in more specific market segments. Amazon.com and Google Shopping are only a few examples to site some. EBay did strengthen its position by having well over 27,000 different shopping categories. However, in order to compete with giants like Google, whose understanding of e-commerce led it to create its own Google Shopping, eBay created a safe space for online auctioning. Users throughout the world could compete on all 27,000 categories given by eBay, while committing to well-spend funds and effective marketing and public relations. Thus, eBay’s determination to edge over its competition has been a major mission of theirs.
• Considering the five (5) forces of competition, choose the two (2) that you estimate are the most significant for the corporation you chose. Evaluate...