Ebay Inc

eBay Inc.: Bidding for the Future

Identify elements specific to eBay from all external environment segments?

Demographic Segment: As eBay being an Internet retailer, 50% of their buyers are over the age of 45, 53 percent are male, and 72% earn more the $50,000 per year. Based on the ethnic group, Hispanic population is growing at a fast rate in United States and could triple in next 40 years.

Economic Segment: Due to increase in unemployment rate and mortgage crises has caused decline in disposable income. There are many unemployed people who are selling on eBay to earn extra money and due to that eBay had to lower their fixed-cost sales to 70% to compete in the market and allows buyers for the lowest price possible.

Political/Legal Segment: EBay has legal issues like their sellers are selling fake replicas of major brands in the world. They have a developed a filter program on their website which doesn’t violate the trademark of any product. They also have issues with the sales tax because every state has different tax and when the sellers sell their product on eBay, the buyers isn’t charged for any tax.

Sociocultural Segment: Anyone who wants to sells their products through online can do it from eBay. The seller should be giving the correct information of what they are selling and the buyers have rights to contact the seller for further information if required. EBay charges their fees according to the sales. EBay also have an option for bidding the particular item. Basically, it’s like an auction.

Technological Segment: Technology like Skype can be threat to eBay because it can lead to buyers and sellers transaction without the eBay fees. Due to various trend in technology, eBay has to stay aware and respond to the market as quickly as possible. Another aspect is that online shopping should be made easier and quick for the buyers.

Global Segment: Increasing demand of online shopping around the world made eBay to expand internationally....