What are EBAY challenges right now? what strategy should the management employ to overcome those challenges? India
What are EBAY challenges right now? what strategy should the management employ to overcome those challenges?
eBay faces a lot of challenges right now. Once it was the darling of internet stocks, but not anymore.
1. Its main auction model is slowing as ebay faces maturity = to achieve growth, it will have to do so not with its auction site but its acquisitions such as Paypal and eBay. Forbes Magazine has an interesting article on this http://www.forbes.com/markets/equities/2…
2. Stiffer competition particularly abroad = early this year, eBay had to scrap seller transaction fees in China due to significant competition from Alibaba.com. Even in Korea, Yahoo is aggressively challenging eBay http://www.redherring.com/Article.aspx?a…
3. Sellers are looking for other (cheaper) channels to sell their products = ebay's fees are continuously rising, and sellers are looking for ways to sell their items. They are flocking to ebay's competitors or creating their own ecommerce site
4. Competition from Google = Google has developed GBuy or Google Checkout, which is its main challenge to Paypal http://www.forbes.com/markets/2006/06/09…
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