Ebay Pest Analysis

PEST ANALYSIS FOR EBAY COMPANY

The PEST Analysis shows the political factors, economical factors, social factors and technological factors which can affect the business.

The Political Factors are: -

• The eBay has established partnerships with International Companies which has made it to undertake different political opinions of various countries.

• The introduction of taxes can reduce trading among communities because it reduced profit margins.

• The taxes will make the costs to rise this will affect businesses since everything will rise.

• The eBay company has built a strong trust between sellers and buyers so that both parties are confident that anything transacted on eBay services is successful.

• The eBay respects sense of community respecting peoples view.

• The legislation which does not allow to share certain information over the internet can affect the business since some will have fears to access the eBay services.

The Economic Factors are: -

• The eBay should maintain the good image because it has gained an increase growth in financial rates because of it business strategy to reach global people.

• Having more competitors eBay should take care because they can reduce customers hence reducing income to the company.

• The high rate of unemployment can rise to eBay Company if it does not maintain its image which can result in poor businesses with no profits.

• Weak economy of international countries such as can financial crisis can also affect the businesses of eBay Company because people will not be able to buy items and use eBay services.

• The foreign currency exchange rate can also affect the profit margins because the costing will not tarry with the sales.

• Economic environment decline will affect revenue because...

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...d friendly user interfaces which are menu driven easier access of the company services.

• There are customer tools and transaction processing, network applications and database so that transaction of data is reliable and secure.

• EBay technologies simplify storage and processing of data, deployment of global products and services by automating administration of clusters of computers.

• The eBay technologies are designed to fit industry standard architecture because it reduce down time when outages occurs.

3 EMARKETING STRATEGY

The EBay Company made the company strategy and Business Model to define the businesses to compete in and ways on how to provide successful services to customers.

3.1 THE COMPANY MISSION

• To maintain the position as a leading company in ecommerce. This is to be achieved through investing in marketplaces and introducing adjacent markets.