EBay - Five Forces Analysis

EBay - Five Forces Analysis

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Short description of Porter's Five Forces analysis for…

Intensity of Existing Rivalry

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Low storage costs (EBay) When storage costs are low, competitors have a lower risk of having to unload their inventory all at...
Large industry size (EBay) Large industries allow multiple firms and produces to prosper without having to steal market share...
Fast industry growth rate (EBay) When industries are growing revenue quickly, they are less likely to compete, because the total...
Relatively few competitors (EBay) Few competitors mean fewer firms are competing for the same customers and resources, which is a...

Bargaining Power of Suppliers

Large number of substitute inputs (EBay) When there are a large number of substitute inputs, suppliers have less bargaining leverage over...
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Low concentration of suppliers (EBay) A low concentration of suppliers means there are many suppliers with limited bargaining power. Low...
Inputs have little impact on costs (EBay) When inputs are not a big component of costs, suppliers of those inputs have less bargaining power....
Critical production inputs are similar (EBay) When critical production inputs are similar, it is easier to mix and match inputs, which reduces...
Volume is critical to suppliers (EBay) When suppliers are reliant on high volumes, they have less bargaining power, because a producer can...
Low cost of switching suppliers (EBay) The easier it is to switch suppliers, the less bargaining power they have. Low supplier switching...

Threat of Substitutes

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Substitute has lower performance (EBay) A lower performance product means a customer is less likely to switch from EBay to another product...
Buyers and Sellers must interact at eBay because it has volume (EBay) Please edit this page to add a description…
Substitute product is inferior (EBay) An inferior product means a customer is less likely to switch from EBay to another product or...
Limited number of substitutes (EBay) A limited number of substitutes mean that customers cannot easily find other products or services...

Bargaining Power of Customers

Product is important to customer (EBay) When customers cherish particular products they end up paying more for that one product. This...
Large number of customers (EBay) When there are large numbers of customers, no one customer tends to have bargaining leverage....

Threat of New Competitors

Industry requires economies of scale (EBay) Economies of scale help producers to lower their cost by producing the next unit of output at lower...
High switching costs for customers (EBay) High switching costs make it difficult for customers to change which products they normally...
Entry barriers are high (EBay) When barriers are high, it is more difficult for new competitors to enter the market. High entry...

What is Porter's Five Forces Analysis?

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