Ebay Inc - Choose the Two Segments

Choose the two (2) segments of the general environment that would rank highest in their influence on the corporation you chose.

EBay Inc. is one of the leading Internet companies in the world. It is an American online brokerage, known by its website auctions of the same name. It was created in 1995 by Pierre Omidyar. In short, since the foundation of eBay in 1995, it has become the most important place in the world to buy and sell a community of hundreds of millions of ordinary people, small businesses, and even large companies from all seven continents. Millions of items of all imaginable kinds, in every imaginable condition change hands every day on eBay for prices ranging from one cent to hundreds of thousands or even millions of dollars (or pounds, or other forms of currency ).According to the mission statement of eBay, "eBay's mission is to provide a platform for global trade where practically anyone can trade practically anything." eBay has succeeded in its mission beyond his wildest dreams, and it was almost entirely in the online world.

Some segments of the environment could be a great tool of influence of eBay. One of them could be the assessment which consists of comments and ratings left by other eBay members with whom you have made transactions. These comments and ratings are valuable indicators of your reputation as a buyer or seller on eBay. They are included, with an overall score in your Feedback Profile. For each transaction, buyers and sellers can rate each other by leaving a review. The evaluation left by a buyer can be positive, negative or neutral, with a brief comment. The evaluation left by a seller may be positive and accompanied by a brief commentary. These assessments are used to determine the profile evaluation. With few exceptions (listed below), evaluation function as follows:

A positive evaluation increases the profile evaluation point. A neutral evaluation does not change the assessment profile. Negative feedback reduces Feedback score a point. Each member can influence your assessment profile of a point (more or less) per transaction. However, for multiple assessments are taken into account in the evaluation profile, the new transaction for which the member leaves a review should not take place the same week. In the eBay feedback system, a week begins on Monday and ends on Sunday (Pacific Time).

For example, suppose that a buyer wins an item on Tuesday and leaves positive feedback on the seller on Thursday after received the item. If the buyer wins another item offered by the same seller in the week, the new assessment will not be taken into account in the Profile Evaluation seller. However, if he wins another object on the following Thursday, the new assessment will be taken into account. Those assessments may affect the reputation of a seller on eBay and also affect the reputation of this company in the sense that new visitors may read these comments and be affected by what they read and think that eBay is not a trustworthy company in case the comments were negatives.

On the other hand, the company operates in a monopolistic competition in which the risk of entry by potential competitors is relatively high due to low barriers to entry. The model of society promoted by neoclassical economists is where strong competition would prevail. They believe that the economic problems all come from market imbalances and these imbalances result of all barriers to competition. If it was the only force at work, it makes enough to give each economic agent wage he deserves, inadequate compensation signal being a commodity is in excess, and therefore need to produce another market where wages are important. The optimal model of society is where you applied the five criteria of perfect competition. These criteria are almost inseparable from the neoclassical theory of markets and balances are well known. This is the atomicity of economic agents (a very large number of buyers and sellers is none dictates its law to markets), product homogeneity (the products are substitutable), the transparency of information (everyone can know what free compensation levels for each commodity), the free entry and exit from the market and the free movement of factors of production (the balance can be almost instantly). Virtual space makes it possible to meet a large number of buyers and sellers. Only information on the various offers could be complicated. This is why comparators costs exist. But the best system for this criterion is online auctions. As such, eBay is distinguished by its large number of agents grouped in the same place of commerce and trading volume observed. It is possible for everyone to see what the results of almost all of these transactions are. Ultimately, the only non-substitutable products are those that are particularly rare, but the auction system can again relate the supply and demand and to give the right price, the balance on each goods. And indeed, one of the revolutions of eBay is the new mode of trade resulting from the abundance of products sold and sellers, allowing competition among them beneficial to everyone. In this framework, the mechanism of a highly competitive market keeps its promises. EBay also acquired a number of other companies which greatly affect the expansion of the company. Some of the acquisitions are as follow:

-On July 11, 2003, eBay acquired EachNet7, a leading Chinese online business for $ 150 million in cash.

-in May 1999, eBay acquired the online payment service Billpoint, which will eventually be closed after the acquisition of PayPal in 2002.

-In June 2005, eBay acquired Shopping.com, a comparison engine price to $ 635 million.

-In April 2006, eBay acquired for $ 48 million Tradera.com a Swedish auction site

Considering the five (5) forces of competition, choose the two (2) that you estimate are the most significant for the corporation you chose.

"Model of Porter's five forces" was developed by Professor Michael Porter Strategy in 1979. It considers that the notion of competition should be enlarged: within an industry, a competitor means any economic operator that may reduce the ability of firms involved to generate profit.

According to Michael Porter five forces determine the competitive structure of an industry of goods or services: the bargaining power of customers, bargaining power of suppliers, threat of substitute products, and the threat of potential entrants on the market the intensity of rivalry among competitors. Configuration, the hierarchy and the dynamics of these forces help to identify the key success factors, that is to say, the strategic elements that must be controlled so that the profit is captured by the