Rivalry Of The Global E Commerce Market - 1371 Words

Rivalry in the Industry: (Medium to High) E-Bay is one of the dominant players in the global e-commerce market; but because of low entry barriers E-Bay is currently facing competition in its different market segments. Therefore, this market is full of competitors such as Amazon, Craigslist, Yahoo! Auctions, and other new players such as Alibaba, Jet.com and Overstock.com. The battle between e-commerce players engage in price- based competition to persuade buyers, therefore these players limit their ability to raise prices. Also, due to relatively low barriers to entry, new companies continue to crop up in the global e-commerce market, which intensify the competition. However, one of the biggest competitor of eBay is the drop off industry,†¦show more content†¦There are also low exit barriers in this industry. EBay needs to keep up with consumer needs and wants along with keeping an eye on its competitors in order to be successful. Threat of New Entrants: (Medium) This is an Internet driven service industry, where there is a low barriers to entry. Hence, it is relatively easy for newer player to enter the market and start selling products, but it is difficult for newer players to gain brand recognition and attain high ranking on the most popular search engines. The online payment mechanism has relatively higher barriers for new entrants since security is a vital for online payment, making it difficult for new players to attract new customers. PayPal has benefit eBay significantly, since it has positioned them as a strong contender in the market. However, Amazon, Apple and Alibaba could potentially challenge PayPal’s strong market position, because these three competitors are strong enough and have enough resources to compete on a large scale, consequently restricting newer players to an extent. The main barriers in this field come from government regulation. The government does not allow some products to be sold in certain states or countries and so any online auction site needs to make sure they do not violate certain laws. EBay has developed different policies that prevent someone from buying an item that would violate their local government. Even though eBay acts the middleman