Analysis of Relevant Factor in Marketing

Porter's five factor analysis

Porters five forces model is one the popular technique of market analysis which includes five forces of market such as bargaining power of buyers, bargaining power of suppliers, rivalry among existing competitors, threat of substitute products and threat of new entry (Grossnickle and Raskin, 2000).

Bargaining power of buyers: Generally, there are two kinds of buyers of Ebay such as customers and retailers. Retail purchaser are the group which has the most effect for company and other confectionery producers. There is high level of competition for shelf space and threat of backward integration especially with brand only goods. Retail purchaser of the association can make direct impact on revenues of the association (Pines, 2006). On the other side, there are online limitless number of buyers of the association. However, there are single price for all over the world, and thus buyers do not have any real power in influencing Ebay.

Bargaining power of suppliers: Suppliers are the group which can influence quality and price of laptop. Changes in prices and technologies of these products will affect the price of profitability of the association in the next five year (Cravens and Piercy, 2008). In order to get sustainable supply of cocoa, company has created partnership with various big manufacturer of laptops such as dell, HP etc. On the other side, company can acquire several regular suppliers in order to ensure that they have control over the prices of the products. Finally, it can be said that suppliers can influence prices and quality of the electronic products and thus, entity should make effective strategies to get regular supply of inputs. Furthermore, the company does not have classical technique of selling, but instead provides a services which brings the buyers and sellers together. Thus, it can be said that the suppliers does not have sufficient power to influence the marketing of the business (Kotler, 2000).

Rivalry among existing competitors: Ebay is online retailer entity and this is one of the fastest growing the competitive sector of the world. There are ranges of big competitors of Ebay which may influence sales and profitability of the business in next five years. However, as long as Ebay continues to appeal to the drop of companies, they will not have a problem with competition. Yahoo auctions is one of the most significant up coming competitors of the entity, which are fighting eBay for a piece of the market. The major reason behind it is that people know the name of Yahoo and Google very well (Peattie, 2008). In order to fight with high level of consumers, entity continues to appeal to its consumers and provide the suitable products and services with low prices.

Threat of substitute products: Normally, there are not ranges of substitutes to trading online. Another option would be to go back to trading at an auction house. The other option would be to sell the items directly stead of placing them on an auction. Thus, it can be said in the auction purchasing consumer must pay higher prices, but in online business consumers can get various kinds of competitive prices (Kiang, Raghu and Shang, 2000). In the case of online business, there are ranges of other sites which can provide same kinds of substitute products such as laptops of Chinese market. Hence, there is the threat of substitute products for Ebay.

Threat of new entry: In the present world of internet, there are very low barriers for new entry. The major barriers come from government regulation. There are several products and services that cannot be sold by the online companies in several areas. Hence, it can be said that there is always a threat of new entry in the online retail sector (Grossnickle and Raskin, 2000).
VRIO analysis
Internal environment of the business also affect the marketing of the association. Thus, VRIO is one of the best tool through which internal environment of Ebay and its competencies can be evaluated easily.

Business Model: It play very significant role in the business because it is what created the sector they are in. The model of Ebay comprises not only their modes of payment, but also the society in which they do business. It provide open interaction with seller and buyers of the electronic products and services (Pines, 2006). It is the economical and effective model of business. This model will be helpful for the association in achieving objectives of the business in upcoming f

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