Newbeny 2
eBay should continue to focus on growth and continue to fight off competition from rival
companys. eBay has dominated the U.S. online auction market ever since its creation in 1996.
The current market conditions are changing and eBay must position itself for continued growth.
eBay has met most of its key success factors shown in Appendix 1, but must continue to focus on
them to sustain its current growth. eBay's two fundamental challenges include, continued
growth, and the evolution of the business model.
Growth
eBay's growth this far has been outstanding but with the slowing market conditions eBay
must attract new customers to continue its current growth. eBay has sustained a competitive
advantage in the online auction market, but now must transfer this success to additional
expansion in the international markets. One of eBay's weaknesses as ,hfi*ryrthe SWOT analysis
(Appendix 2) is that eBay has not prepared for the slowing of the U.S. market. With Yahoo
exiting out of some international markets this leaves a larger market segment available for eBay
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to absorb.l
eBay should achieve a competitive advantage over other online retail companies by
continuing to expand into the international markets. The emergence of the Asian and European
markets (due to increased internet access) creates a good opportunity for eBay to assert itself as
the global leader in online retail. By taking advantage of the opportunities to capture the market
early on it will be easier for eBay to introduce new products for continu ed growth.y/
eBay also should consider expanding some of its key categories to capture alarger
market share in that industry. Some of eBay's best categories only capture 1-5 percent of the
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