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eBay Inc. (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

eBay Inc.

eBay is an online company that provides online marketplaces for the sale of goods and services. It also provides commerce, platforms, online payments services and online communications offerings to individuals and businesses. The company primarily operates in the US. It is headquartered in San Jose, California and employs 15,500 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Business model
  • Strong technical platform

Weaknesses

  • Declining operating margin
  • Litigations

External

Opportunities

  • Strategic acquisitions
  • Increasing popularity of used goods
  • Growing search engine advertising
  • Increasing online consumer spending

Threats

  • Hacking and spoofing
  • Rising labor wages
  • Intense competition
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