CONSUMER ANALYSIS
WHO?
Who are our existing and potential prospect customers? Who really upload items for listing as well as who purchases our products? Who are always interested browsing the website? Simply, who are our markets?
WHAT?
What products and services the company are providing? Does the products vary from other e-commerce businesses? Is it worth it? What are they presently buying?
WHEN?
When will the items be delivered? Does the company monitors exact delivery dates of purchasers? When the right time and right reason items will be sold?
WHERE?
After planning of timing business should be specific regarding the delivery location.it should be precise with the exact location where the product is supposed to deliver so it reaches
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PORTER’S FIVE FORCES
SWOT ANALYSIS
Strengths
1. World’s largest internet marketplace.
It has more than 105 million active user worldwide in more than 39 countries. This makes eBay largest online market place having great power over other online marketer.
2. Business model.
EBay stands as intermediator between buyer and seller in online marketplace.
3. Economies of scale.
In the starting phase, huge amount was not required in investing. Customer relationship management was the key and since then it started serving more them 100 million users creating the largest online market with few additional investment.
4. Localization.
EBay is operating in 39 countries and each country uses local language and offers local products which is not seen in any other online marketing businesses.
5. Payment system.
EBay have PayPal, its specific own payment system to proceed in all of the payments for eBay’s marketplace. From buyer’s viewpoint, PayPal provides fast and easy routine online payment method.
6. Brand reputation.
It has a great goodwill and is popular all over world and valued at $11
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2. Increase service portfolio Through acquisition. EBay has already merged with many other companies for expansion of its service and should keep it up
3. Open more online stores in other countries to sustain its current increasing level and establish other online market place in developing countries
Threats
1. Online security.
The major threat for eBay is PayPal, its payment system which records bank account detail of all its customers which can be targeted for online theft. As the number of customers increases, more chance in attracting online theft and fraud.
2. Regional low cost online retailers. Regional low cost online retailers could outrival eBay on faster and cheaper shipping, more localized product offered and better knowledge about home market.
3. Increasing competition from Amazon. Amazon is already on top.
4. Exchange rates.
EBay receives a part of its income from foreign operations. The revenues that are forwarded back to US have to be converted into dollars and may be affected by the exchange
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are increasing too. This creates significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
...ng luxury, not many people want to wait two weeks to receive their product. When an item is ordered, it is needed immediately, and if it is received immediately then it not only improve the relationship to the customer. But it will also add value to the purchase which makes that customer that much more likely to buy the product again in the future, as opposed to your competitors. If you have customers in remote areas you do not have the luxury to send their shipment in a large batch of items, you must pay more to have that item shipped individually, which is costing more money.
In terms of PayPal’s corporate level strategies, they have focussed on innovation where they are trying to bring new system and feature into their existing technology or product. The process is to cope up with the growing number competitions such as Apple Pay, Google Wallet and other financial institutions and providers. According to Keith Bossey PayPal was the only alternative web and mobile based payment processing provider among a field of 35 competitors to earn ‘Star’ status in their brand equity. They are the only brand used by a majority (53%) of micro to small medium sizes business and private enterprise owners around the world (Fallon, 2014). PayPal’s another corporate strategies was to connects with financial institutions around the world and allows customers to collects payments using a wide range of payment method such as Visa Credit, Online banking etc. It happens regardless of where the business and seller is being located. Despite the split from their parent company eBay in 2015. They have embarked their payment system journey through strategic acquisitions and growth in their strategies (Nunez Enterprises, 2015). At the same time their innovation and emphasis leads one of the profitable business and trying to do their best to serve consumer their services. The report show that they continue to expend their operations covering all seven continents and trying to reach as many consumers as possible to enable easy and faster payment system. According to CEO Dan Schulman PayPal will be providing “full service” to their
PayPal is an e-wallet: an online account where you can store money. All you need is an email or account number linked to your PayPal account. This makes it a great way to budget for your online casino play, as well as keep track of your winnings, completely separate from your daily banking.
International regulations are slowing Amazon’s expansion. Some countries’ regulations limit possibilities of internet purchases. However, internet providers bring faster and more affordable internet to more consumers which enable more consumers to shop at Amazon. Often, the company under analysis needs help of national governments to launch its authorized countywide websites and receive benefits in regard to taxation. In less internet penetrated open countries, besides direct investments, Amazon requires assistance of local authorities to develop the demand for e-commerce to a significant level. An online global retailer can expand its operations to closed countries through strengthening political relationships and trade pacts. In new countries, Amazon needs either pre-determined national priority supporting the e-market development or strong governmental lobbying of internet-based industry to increase the governmental capacity to earn. In some instances, the corporation needs local political hierarchies to relax cultural or religious ideologies for facilitating conditions friendly to the e-commerce development.
Can expand in markets like India where people are becoming more fashion conscious & have increasing purchasing power.
...oes not dominate the entire market. The Chinese market is so large that even an e-commerce giant like Alibaba is unable to capture the entire market. Here are some other players who are in the market as well:
Technology has played a huge role in how companies today conduct business with their consumers. Over the past few decades there has been a shift in business models and strategies because of the emerging innovation in technology. One of these innovation are e-commerce, businesses that use e-commerce can now see a major difference in sales and revenue. Amazon has taken the idea of e-commerce and turned it into a successful and profitable business. Amazon Company developed a brilliant strategy for emerging into an already competitive market. This entails the revision of an existing concept. Unlike major companies like Apple, Microsoft that invented new products and services, Amazon did not need to create a whole new product but to create a better business model system that can be used in the future. This helped their rise to fame by taking over an existing idea but improving it to match consumer needs and wants. Overall companies will need to develop better business strategies to be able to evolve into e-commerce industry moving forward.
In the competitive environment, it is necessary for moving products involves reception of products at an intermediate location, store, repackage, clear customs and transport to final destination. The other factor in the supply chain logistics is speed given information flows fast in the internet era. The customer expects everything quick accustomed to the instant status access to the information. With the real time inventory, customer expects the location of the product, it is next scheduled movement and the final delivery schedule.
eBay needs to transfer its competitive advantage in the online auction industry into the area of
People know that for the most part they can rely on Amazon.com for fast delivery and a wide selection of goods and somewhat affordable prices. Amazon.com has an efficient and advanced supply chain model, which is why they are able to guarantee quick product delivery to customers. They have strong customer loyalty due to their string customer service and unique business model. Customers freely and openly rate products and services which allows for greater customer satisfaction because customers are able to perform better product research in order to find the best fit for their needs. There are many benefits to be a strictly online business, for example having less overhead expenses compared to normal department stores with multiple locations and employees. and more money to give back to shareholders (Free SWOT). Customers can shop anywhere, anytime, and in any condition they choose. And depending on where the customer may live, they will always get their desired product within a week unless notified otherwise. It is easy to understand why Amazon.com has become a giant in the E-shopping
From PayPal to Debit cards, from EFT to Credit cards, this modern world has been inundated with new ways of making business transactions. Instead of the conventional use of dollars and nickels, now there are electronic payment systems. These types of systems allow for better trust and acceptance between consumer and businesses. In the traditional way of buying a product, one would see a product in person, and pay for it with cash or credit. In e-commerce, the business uploads images of its products online and it enables its customers to shop it using any type of electronic payment system.
In 2002, PayPal was acquired by eBay. It has quickly become popular. Today the company offers services in thirty-eight
This recommendation is the most critical to address because online shopping is worldwide. With Amazon currently dominating the online shopping industry, and quadrupling their sales of $15 billion to $61 billion within just the past five years, it is no question that they have to be doing something right.
In conclusion, E-commerce looks more promising in the future. With the evolution of the E-commerce application, every business should take advantage of it. I believe it is the new way of reaching out to a large clientele. In future physical business locations would become more of a showroom. This would simplifier customers way of shopping. Like any other project, E-commerce application needs to be managed probably to succeed and be able to compete in the future.