EBay refers to huge online customer to customer companies. Its operations began when the society embraced technology. Furthermore, the invention of the internet facilitated its progress. As a result, it has approximately 30 stores that operate in different nations. This online firm has its headquarters that is situated in San Jose California.
This company provides a platform to markets that operate on international level. This is through allowing sellers and buyers to interact and transact their business. This firm has advanced in that it hosts approximately 250 million users, who conduct business on daily basis. Contrasting financial statements aid to determine if eBay management is competent and requires changing its approaches. The profit margin at eBay is 20.8 in contrast to the industry standards of 5.2.
At the firm, the net margin profit is 17.8 which is higher contrasted to the commerce normal rates of 2.8. The standard returns in the industry are 7.6 which balance with the profits at eBay that are also 7.6. This implies that eBay is in a position to offer high returns while using its assets in contrast to other companies (eBay Inc, 2013).
In general, its growth in net income is 3 which is more in contrast to the industry figures that is 1.2. This implies that various companies in this business have low net incomes. The SWOT approach applies in this case to evaluate on the firms inside and outside environment. EBay’s strengths are evident when it operates via a unique business model. This approach connects both sellers and buyers to conduct their business via online platform. The weakness is clear via its growth strategy. It tend to be low contrasted to the industry hence; no development.
The opportunities at eBay are that it introduces retails platforms to enhance a competitive advantage over other organizations such as Amazon. The threats are evident in fraud especially when business partners indulge in transactions. Strategically, the firm needs to upgrade on efficiency, and security to enhance safe transactions.
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Booker, J., CCH Canadian Limited., & Financial Advisors Association of Canada. (2006).Financial planning fundamentals. Toronto: CCH Canadian Limited.
eBay Inc. (2013). Who we are. Retrieved December 11, 2013, from eBay Inc: http://www.ebayinc.com/who_we_are/one_company#
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