Essay: SWOT analysis of eBay

SWOT analysis examines the strategic planning of organization with the aim of establishing the weaknesses and the strengths of the current strategy. It feeds the company with information that would help it maintain its position notwithstanding the competition posed by the other company’s by the knowledge of the resources at disposal to matching the objectives of the company. EBay’s current strategy has placed more emphasis on the direct retailing as opposed to the previously held auctioning of it goods.

Strengths

Primarily, EBay had a very strong customer base with over a third of the internet users subscribed to the company.  This could be due to the good brand name and positive public image that had already been cultivated among the customers and the world citizenry. The company has a lot of financial resources that can see it maintain its position in the ecommerce industry. Besides, eBay’s profit hit an all time high of $ 1.4 in 2007 (Pace, 2009). Moreover, the company had solicited the customers’ loyalty making the predictability of resources very easy. The patent protection of the company I the registration with registrar 9of companies has enshrined the company’s copyrights from fraudulent and malicious competitors.

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