Issues that management needs to address : eBay faced a decrease in the profit at 2009 with percentage of 29% also a decrease in their revenue by 4% As they turnaround strategy. eBay was growing slow in some segment also eBay faced decrease in the market share. -Barriers to entry for companies which are similar to eBay are low upon that competition level will rise in the future. Pestle analysis : Political EBay legislation used to be that they don’t collect taxes from sellers, but policies are changing now, since EBay is planning to start collect tax starting in 2011, which may cause a drop in trading in the site, which will increase cost Economic eBay is one of the companies that have suffered from a weak economic situation. It continued with its strategy to shift in a harsh climate for consumer spending, and the resources of existing competition companies are larger and, as a result, competitors can be exposed to economic recession, especially in the market segment that is …show more content…
Social EBay is well known between online customers because it’s convenient to have access to all kind of goods, under the protection of the site. In 2008 because of the bad economy EBay reduced its workforce by 10%, by exclusion 1000 employee, and they spent $49000 in restructuring. EBay was sued by Rolex, L’Oreal, Tiffany & Co, Christian Dior, and Louis Vuitton for selling their products without their permeation, and EBay found guilty by the court, which caused the company 38.9 million Euro. Other problem EBay faced was the hackers, since 20 million users was hacked and got their account to be used inappropriately, which forced the company to companion them.