The Strategic Position of E-Bay Essay Example | Topics and Well Written Essays - 2500 words

The Strategic Position of E-Bay - Essay Example In the end, this report recommends that eBay develop and implement a business to business exchange. The success and even the mere survival of a business organization are strongly linked to its ability of utilizing its core competencies in crafting an efficient strategy as a response to the trends and challenges in its business environment. The phenomenal success of eBay is one of the most documented dotcom stories as it features the specific factors that an online retailer needs in order to survive. However, with the maturity of its market, the online auction store is threatened by a market slowdown and other environmental pressures (Thomson, Strickland, and Gamble 2006). Thus, the organization needs to put in place a strategy which can bolster its growth. The financial situation of eBay can be best understood by using an annual statement analysis which considers the trend and the significant financial ratios of the business organization. Appendix 1 highlights the computed financial ratios of eBay based on the audited annual report that it filed in the SEC during 2005. During 2005, eBay generates total revenue of $4.55 billion, a double digit growth of 39% from the 2004 level. Of this, 82% accounts for gross profit, 32% translated into operating income, and 24% is recorded as net profit. eBay finances its resources with less risky equity. In fact, the company has a resource structure of 15:85 in favor of stocks. This implies that the online auction firm has a relatively smaller amount of interest obligation which it can easily pay with its huge income. The company can more than pay off its immediate obligation, having a current asset account which is more than twice its current liabilities. eBay, though, has a low return to equity of 11% (see Apendix 1). 3.2. Marketing Analysis The phenomenal success of eBay is directly linked to its efficient marketing strategy. The business organization segments its market according to their interests into six categories namely, bargain hunters, hobbyist and collector buyers, professional buyers, casual sellers, hobbyist and collector sellers, and power and corporate sellers (Thomson, Strickland,& Gamble 2006). Being an online operator, eBay has succeeded to provide a user friendly website with unique features to make buying and selling easier and more convenient to customers. As a global player, eBay captures each locale through the use of customized platform that reflects the unique culture, values, and language of each country (eBay 2007). The company succeeds in satisfying the needs and wants of its various customers through the provision of venue where buyers and sellers can find the items that they want with the price that

Letter to the Editor Essay Example | Topics and Well Written Essays - 750 words

Letter to the Editor - Essay Example The market price of crude oil would not be so high if the demand for it was not as high. The average home in the United States spends 6,000 kilo watts of electricity. Most of this electricity is currently been generated by petroleum. There are several constraints that are making it difficult for society to switch to renewable energy sources. One of the biggest obstacles is that there is an electricity grid infrastructure based on petroleum that is worth billions of dollars. Neither the federal, state, nor local governments are providing adequate incentives to foster the growth in alternative energy sources. The government has to be the number one supporter of the green movement for energy to become economically viable for home users. A lot of people are not willing to invest in a wind mill or solar panels because it is cheaper to acquire electricity from the utility companies. There are several solutions that can help remedy the situation, but it all stars through education. The gove rnment and private sector have to improve the public relations and advertisement to create awareness to the general public about the subject. The use of radio, television, and internet announcements must be used to ensure the greatest number of people receive the message. Internet advertising is a hot trend that has gained popularity in the marketing world. In 2012 the online advertising industry generated $89.4 billion worldwide (Plunkettresearchonline). Educating the general public about the subject will go a long toward gaining the support of the people. Two alternative renewable energies that households can utilize to get off the grid are solar and wind power energy. The government has to create incentive programs that provide a subsidy in the purchase of the technology. The subsidy has to be large enough to offset the lower cost of getting energy from the grid. The government has also provided a help hand to setting up setting up a larger fund to be use for research and develop ment in research to develop new renewable energy options. The private world also has to be involved in the movement towards been stopping the dependency in fossil fuels. Corporations have more financial resources than households which makes it easier form them to spend the necessary money to invest in solar and wind energy on a large scale. The private industry should also be eligible for government subsidies in order to lower the costs of acquiring the equipment. One of the benefits of installing solar panel systems is that the excess of production of the system can be sold to the electrical companies at market value. Renewable energy systems are a green product that people who are environmentally conscious will support. Society cannot continue to disregard the abusive usage of energy both in businesses and households. It has come a time for both the government and the private sector to make a commitment to stop the accelerated usage of fossil fuels as the raw material necessary to create energy. Petroleum is starting to because scarce. At the current rate of usage petroleum will be depleted within 40 years. The product useful life of petroleum can be increased by several decades if the government and private corporations work toward together towards finding a solution to the problem. Currently the two best technologies for creating electricity are solar and wind energy. Nuclear energy is also an opinion, but the capital needed to increate the infrastructure is a barrier of entry. An important industry that