Strategic Management-A report based on a strategic review of eBay Essay

Strategic Management-A report based on a strategic review of eBay - Essay Example On the other hand, favourable economic conditions initiate the growth of online shoppers within the industry. This factor has enabled the company to strengthen its financial base and cater needs of consumer market. Technological changes also influence the company to upgrade its technical capabilities. Competitive analysis reveals the fact that there is intense competition within the industry. The bargaining power of suppliers is less in comparison to bargaining power of customers. This is because availability of more players offering similar products and less switching costs involved. Internal analysis has been performed in order to evaluate internal strengths and weakness, and market opportunities and threats. On basis of value chain, swot analysis, external environmental analysis and resources and competencies certain appropriate strategies has been outlined. These strategies are then evaluated with the support of SFA framework so as to recommend most suitable strategies for future development and growth. eBay Inc., is an ecommerce company that provides business to consumer and consumer to consumer sales service through Internet. The mission of the company is to provide an online platform where individuals can trade anything thereby facilitating economic opportunity. It is an online auction company and strategies are inclined towards creating global leadership. The forces present in external environment tend to affect business operations in nearby future. Business of eBay Inc. is linked with politics as it is closely knitted with economic conditions. Political uncertainty is highly prevalent across the globe and this affects eBay’s operations since it operates worldwide. In the coming general elections, tax rate is to be increased by labour planning council (Verdin and Subramanian, 2003). On the other hand, income tax threshold is also expected to rise to 41,865 pounds from 41,450 pounds (Allen, 2006). Legal factors also