Porter and Strategic Analysis of Ebay
The Porter's Five forces framework analyze the environment of a company in order to have a global image of the threats which faces the company or its attractiveness. In other word, this analysis focus on three horizontal competencies: • Competitive rivalry in the same industry • Threat of substitute products • Threat of new entrants and two vertical competencies: • Bargaining power of customers • Bargaining power of suppliers The aim is to determine the threat and the opportunities for the company in each competency.
Industry Competition: this analysis will permit to determinate the competitiveness of eBay, how does it react to competition? Threats: • There is a low entry …show more content…
Bargaining power of buyers: this analysis will permit to know if buyers are able to put eBay under pressure or not. Threats: • • • • eBay is not selling anything, it's just a platform which makes easier the P2P business. So it doesn't control everything. eBay is responsible for all the transaction so if one goes wrong, it's eBay's fault. On eBay, there are high-end items such as real estate, boat, cars and those kind of transaction are more risky for eBay. People who are able