ORGANIZATION – EBAYPresenting Model:Porter’s Five Forces THREAT OF NEW ENTRANTS:MEDIUM It is very easy to enter in the market by the new seller but it is hard to stayin the trade and get support from their customers, Today the world is goingon with very fast and with tough competition through existing as well asexperience seller who were battling to stay in the market, new entranceseller also need to battle more in the market to stay for a long time. THREAT OF SUBSTITUTEPRODUCTS: LOW E-bay is already selling high level variety of product, sothere is no problem for the Substitute Threat. BARGAINING POWER OF CUSTOMERS: HIGH Customer Demand is high in price, seek variety of products and service, ifany difficulties they found they would like to buy the product from otherseller. BARGAINING POWER OFSUPPLIERS: MEDIUM a high number of suppliers are supplying the products to E-bay and otheronline trade websites also, now a days these were increased, so Suppliersbargaining is also increased to E-bay reason may be price, goods deliverytime etc. COMPETITIVE RIVALRY : HIGH E-bay having tough competition from both onlinetrade and normal trade, because customers haveoption to getting new or existing products fromlarge number of retailers, wholesalers and otheronline web sites. According to their customerpreference and taste, price make the customer theymay get the product from any seller.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 company’s conducive to earning good profits? Why or why not?2. Based on your analysis of the industry and eBay’s 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 firms in the online auction industry?You are to use, and cite, no less than 3 outside sources for your report portion. This will be in APA format and a minimum of 2 pages. That is, the BODY of your paper is to be a minimum of 2 pages. Title pages, Abstract and resource pages do not count to the total
MGT 408O RGANIZATION – EBAY, Porter’s Five Forces
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