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EBay’s Swot analysis

• Strengths

➢ eBay is the leading global brand for online auctions. The company is a giant marketplace used by more than 100 million people to buy and sell all manner ofthings to each other.
➢ The company exploits the benefits of Customer Relationship Management. Buyers and sellers register with the company and data is collected by eBay on individuals. This is theBusiness to Consumer (B2C) side of their business. However the strong customer relationships are founded on a Consumer to Consumer (C2C) business model, where strong interrelationships occurs, forexample where buyers and sellers leave feedback for each other, and whereby awards are given to the most genuine of eBayers.

• Weaknesses

➢ The organization works hard to overcome fraud.However, the eBay model does leave itself open to a number of fraudulent activities. Fraud includes counterfeit goods being marketed to unsuspecting eBayers.
➢ Other forms of theft could include theredistribution of stolen goods. It should be pointed out that fraud and theft are problems with individuals, not eBay.
➢ The weakness is that unscrupulous individuals can exploit the C2C businessmodel.
➢ As with many technology companies, systems breakdowns could disturb the trading activities of eBay. In the past both eBay and its payment brand Paypal have encountered shutdowns and outages. Astechnology improves such a weakness is less and less of an issue.

• Opportunities

➢ Acquisitions provide new business strategy opportunities. eBay has agreed to buy online telephone companySkype Technologies for example, letting PC users talk to each other for free.
➢ PayPal payment system to increase the number of services it offers to consumers and keep its profits growing.
➢ Newand emerging markets provide opportunities for Market Development (including China and India) where consumers are becoming richer...
➢ There are also still opportunities in current markets (Market...
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