Business management Essay Example | Topics and Well Written Essays - 1250 words - 1

Business management - Essay ExampleThe compositors case, eBay in 2002 The Challenges of carry on Growth analyse the business environment and the companys strategic objectives through a cabal of perseverance analysis, competitive analysis and a SWOT analysis and aim at identifying issues which needs attention. The case analysis will in like manner provide brief recommendations in terms of strategies and tactics, which the company can position in achieving its strategic goals.In crafting strategies, to gain and maintain a sustainable competitive position in an industry, it is imperative that companies assess the competitive forces at work within the industry in which it operates. Porters Five delineate Model can be a useful analytical tool in assessing the competitive forces operate in the online auction industry. The Five Force Model considers the competitive pressures arising from Threat of Substitutes Rivalry among competing sellers in the industry Substitutes potential of w inning over industry customers Supplier seller collaborations and bargaining as well as the Seller Buyer collaborations and bargaining.For e-Bay the Threat of substitutes is coming from traditional models of auctioning, flea markets and classified ads. The retail online stores operated by individual companies also pose substitute products for e-bays product offering. Direct marketing can also be perceived as a substitute. Thus, it can be noned that this competitive force is high in the industry. Threat of brisk entrants is very high in the e-commerce business-scape. The setting up costs is relatively low and legislature is not tedious. The readily available software makes the process of setting up e-commerce sites ever easier. Since eBay launched its auction site in 1995, the number of auction sites has grown over 2750 by 2001.Thus, this competitive force too is high zeal within the e-commerce sphere. Rivalry among competitors When rivalry among the competition is high in indus tries, the pressure on pricing