Wednesday, December 11, 2019
Ebay free essay sample
What are the greatest opportunities and threats existing in eBays current external environment? In the current external environment the online sales are still a growth industry there are some opportunities for ebay, the actual global economic crisis it could be an opportunity due the unemployment and the decrease in the power purchasing parity and mortgage crisis generates two effects, first the buyers are look for discounts, and second the sellers by this channel could increases. The importance of the Latin immigrants in the US it turns as a new market niche, whose are more familiarized with the internet culture and are looking for their native products through this channel. There is an opportunity to explore new markets, due EBayÃ¢â¬â¢s experience and the virtual platform they could incursion in new markets such as developing country, innovating in new technologies. On the other hand there are some threats to analyze, the global crisis it could be as well a threat because there is a decrease of buyers. This allowed them to penetrate new market spaces and attract a range of users. The company also expanded internationally and have been successful in certain markets.Ã eBay was considered a leader in each of its market with the except of Japan and China. eBayÃ¢â¬â¢s first attempt into ChinaÃ¢â¬â¢s market was through the acquisition of a Chinese online auction company, Eachnet. They integrated their global strategy platform to EachnetÃ¢â¬â¢s Chinese operations, essentially changing how the website originally operated. Since then, the company has lost most of their market share to local competitor Taobao. After several years eBay then decided to partner with Beijing-based Tom Online. This indicated that eBay failed to adapt to local needs and successfully compete with ChinaÃ¢â¬â¢s online auction market leader, Taobao. This shows that eBay failed to create a community effect in China as they did with their other international markets through their global platform. When eBay acquired Eachnet, their service was running on a global platform in San Jose, CA. Any decisions or features to make for ChinaÃ¢â¬â¢s market would take longer to implement. This caused a lack of flexibility and adaptation to the Chinese market and they cannot respond to changes in the market conditions and needs quickly compared to their local competition. A possible solution for eBay to successfully compete in ChinaÃ¢â¬â¢s market is to improve their platform withÃ eBay Style. The new platform will implement a feature which will allow users to communicate with each other via instant messaging. This has proven to be very effective with their rival Taobao and it will allow the users to connect with one another and create value and a sense of community in ChinaÃ¢â¬â¢s market, which eBay previously could not create. It will also improve the time it takes for users to purchase items from one another on their platform. Another solution for eBay is to establish joint ventures and partner more with local Chinese companies to help them penetrate the large growing market. This strategy will give eBay the knowledge and ability to adapt to the local needs and create brand awareness throughout ChinaÃ¢â¬â¢s market that they could not do before. Through the acquisitions and partnerships eBay will be able to diversify their product and services and establish a firm foot in the market and be able to compete against existing local competitors. The recommended solution for eBay is to establish joint ventures and partner with more local Chinese companies in order to diversify their products and services tailored to the local needs and capture a large portion of ChinaÃ¢â¬â¢s market.