Will someone please give me a 3 pages paper that is not on Chegg site already wi
ID: 395494 • Letter: W
Question
Will someone please give me a 3 pages paper that is not on Chegg site already with 2 references. eBay Challenges: Examining Business Strategy and the Five Forces Model: The Challenges Facing eBay: Time for Changes in Strategy? 1). First, research and create a Porter's Five Forces Model of eBay. Use external sources to assist in populating your model. Next, report and analyze your findings, touching on the following questions: 1. What does your five forces analysis reveal about the nature and strength of the various competitive pressures eBay faces? Are the competitive pressures facing eBay and other online auction companies conductive to earning good profits? Why or why not? 2. Based on your analysis of the industry and eBay situation, what problems and issues does eBay's top management need to address? Which ones are top priorities? 3. What do you see as the key success factors for organizations in the online auction industry? Develop a clear introduction, body and conclusion. Thanks
Explanation / Answer
eBay Inc. is one of the major players in the global e-commerce industry. Some of the major challenges are identified in this Five Forces Analysis of eBay’s online trading platform business.
Porter’s Five Forces analysis model is an external analysis tool that identifies competitive forces and their intensities linked to business performance in the industry environment. In this case, the Five Forces analysis of eBay Inc. encompasses the effects of competitive rivalry, the bargaining power of customers/buyers, the bargaining power of suppliers, the threat of substitutes/substitution, and the threat of new entry on the online marketplace, classifieds, and ticket exchange industry environment. While its marketplace segment is currently facing headwinds, we expect long-term growth in this segment owing to eBay’s strong market position. In this report, we assess how eBay stacks up along Porter's Five Forces to analyze where it could gain or lose going forward.
Porter’s Five Forces
Effect
Competitive rivalry or competition
High
Bargaining power of buyers or customers
High
Bargaining power of suppliers
Moderate/Medium
Threat of substitutes or substitution
Moderate/Medium
Threat of new entrants or new entry
Moderate/Medium
Competitive rivalry or competition-High/Strong force
This Five Forces analysis considers the large population of firms in the industry. This factor leads to tough competition among firms like eBay Inc. For example, the company needs to compete against major e-commerce firms like Amazon, Flipkart and Walmart as well as many smaller firms that have online retail/auction operations. The following external factors are the main contributors to the strong intensity of competition against eBay:
Bargaining power of buyers or customers-High/Strong Force
In this effect of Porter’s Five Forces analysis model, the influence of customers on the e-commerce industry environment is examined. In eBay’s case, the customers are consumers and sellers who use the company’s online trading websites and related services. Customers’ rate of use of such services affects the strategic management success of the company and its subsidiaries like Kijiji and StubHub. eBay Inc.’s customers have strong bargaining power, which is based on the following external factors and their intensities in impacting the international business:
Bargaining power of suppliers- Medium
This model considers suppliers’ impact on the industry environment. eBay Inc.’s strategic management in this external analysis case must account for how suppliers influence the multinational business through its supply chain. As an online trading service provider the company’s supply chain involves information technologies used to maintain trading services. Merchants or sellers who use the company’s websites provide goods, but they are customers and not suppliers because the company does not utilize such goods in providing online retail/auction, classifieds, and ticket exchange services. In this Five Forces analysis, the moderate intensity of the bargaining power of eBay’s suppliers is based on the following external factors:
Threat of substitutes or substitution-Medium
In this aspect of Porter’s Five Forces analysis model, the influence of substitutes on the e-commerce industry environment is assessed. Substitution can reduce eBay’s revenues by attracting vendors and consumers into using substitute services. With regard to this Five Forces analysis, eBay Inc.’s strategic management variables must include the following external factors that contribute to the moderate intensity of the threat of substitution:
Threat of new entrants or new entry-Medium
This aspect of Porter’s Five Forces analysis model examines the impact of new entry on the e-commerce industry environment. This external analysis case covers the effects of new online business operations that compete against eBay Inc.’s global marketplace, classifieds and ticket exchange business. New entrants can reduce the company’s market share and revenues. In this Five Forces analysis, the following external factors are relevant to the moderate intensity of the threat of new entry against eBay:
Recommendations:
Based on the results of this analysis of eBay Inc. through Porter’s Five Forces analysis model, a recommendation is to build competitive advantages through innovation. Innovation enables companies to compete in the e-commerce industry. Effective innovation for product improvement or development can increase market share and help fulfill eBay’s corporate mission and vision statements. For example, a higher innovation rate can increase the company’s online marketplace effectiveness. Another recommendation is to develop more strategic partnerships with third parties, such as courier companies. This recommendation addresses the strong bargaining power of customers by improving service reliability. Also, such strategic partnerships partly deal with the moderate bargaining power of suppliers identified in this external analysis. Furthermore, this Five Forces analysis of eBay Inc. requires that the company’s strategies address the threats of substitution and new entry. Continuing development of services is recommended to overcome these threats. For instance, a broader set of services can increase the attractiveness of eBay’s online marketplace, classifieds websites, and ticket exchange services
Porter’s Five Forces
Effect
Competitive rivalry or competition
High
Bargaining power of buyers or customers
High
Bargaining power of suppliers
Moderate/Medium
Threat of substitutes or substitution
Moderate/Medium
Threat of new entrants or new entry
Moderate/Medium
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