EBay and Amazon

Running head: EBAY AND AMAZON
EBay and Amazon
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1EBAY AND AMAZON
Executive Summary
The purpose of this report is to analyses EBay through strategic analysis framework which
includes SWOT analysis, Porter’s Five Forces and PESTEL analysis. The report is presented
where EBay is incumbent and Amazon is challenger. The report shows the comparison of EBay
and Amazon in the current scenario and analyzes EBay, the incumbent through different
frameworks. The EBay is analyzed to understand its strengths and the weak areas where it needs
improvement and how it stands in the current market. Finally, the report concludes that EBay
although a major player, also has issues that needs to be solved through proper measures that are
provided in this report.

2EBAY AND AMAZON
Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Comparison of EBay and Amazon..............................................................................................3
SWOT analysis............................................................................................................................4
Porter’s Five Forces.....................................................................................................................6
PESTEL analysis.........................................................................................................................8
Summary of status of EBay.............................................................................................................9
Solution for EBay..........................................................................................................................10
References......................................................................................................................................12

3EBAY AND AMAZON
Introduction
EBay and Amazon are two online shopping sites that are growing rapidly and are widely
popular among the customers. The two sites are seen as a shopping sites however there are
differences in operations and functions of both the sites. Amazon directly provides goods from
its storage house whereas EBay provides auction house where bidding of goods are done
(Haucap & Heimeshoff, 2014). The purpose of this report is to analyze EBay and Amazon
where EBay is incumbent and Amazon is challenger, through strategic analysis frameworks.
The structure of this report is strategic analysis frameworks, SWOT analysis, PESTEL
analysis and Porter’s five force model, for incumbent EBay along with summary of status and
solutions.
Discussion
Comparison of EBay and Amazon
The comparison of EBay and Amazon are given as follows.
 Market size- EBay is completely a market place whereas Amazon has its own
products and services which it sells (Arbi, Kausar & Salim, 2017). The market
size of EBay is less than Amazon’s market size Amazon enjoys more active user-
base than EBay.
 Function- Amazon is like a regular store where it has its own inventory, stocks
and data warehousing (Kiran & Kumar, 2015). However, EBay is an auction
place which operates through third part and connects sellers and purchasers.
 Demographics- Amazon is focused majorly on younger groups than the groups
use EBay on an average. More precisely, the average users of Amazon are slightly
younger than EBay’s average users.