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Monday 1 November 2010

PEST of Ebay

1. Political

eBay is a company, which is not very much influenced by political developments. Some countries might put some policies affecting them in place and the on-going globalization might have effects on them as well.
Globalization

Globalization is an issue that will positively affect eBay’s business. They will be able to expand internationally and find new markets.
Government Policies

Some government policies in favor and against interests might be introduced. When looking in the past though, national governments have left e-commerce alone.
Regulatory bodies and processes

Regulations could be passed making sites ensure a certain level of security in online shopping, increasing customer security but also costs for online businesses.
2. Economic
Interest and Exchange Rates

A future instability in Exchange rates would have heavy effects on eBay. Interest rates would also be affected by the instability and therefore affect eBay in bad ways.
Economy Situation and trends

Economic situations of course have a direct impact on eBay’s good performance. Another Wall Street crash would probably devastating effects on eBay while a second boom e-commerce would make eBay’s profit rocket.
Taxation

Taxation might affect eBay in two ways. First of all higher taxing of their profit might be possible. Secondly and more importantly if taxation for every sale in online auction houses would be introduced this would seriously damage eBay.
3. Social
Lifestyle Trends

Further integration of the Internet in the daily life will be a major issue in the next years. This is a great opportunity for eBay and will affect them very positively.
Consumer buying patterns

Consumer might develop completely different buying patterns meaning that they might start buying everything online and getting it delivered. eBay could make use of this and find new markets.
Brand image

eBay’s brand image might suffer over time and their competition might then overtake their position as market leader.
Demographics

In some countries the population is becoming older and in some younger. Older generations might not show much interest in a service like eBay while younger generations generally show more interests in innovations. This means that older societies might not be such a market for eBay to aim at.
4. Technological
Consumer buying mechanism

In future buying of products will more and more take place on online platforms. eBay might be able to take advantage of this by finding new markets and increasing their market share.
Innovation potential

If innovations come, which they will, and eBay does no steps towards them, one of their competitors will do so and maybe even inherit eBay’s position as market leader.
Patents

eBay might be confronted with further patent or licensing issues, which can do them major harm. In very bad cases this could mean that eBay’s earnings are cut down to large percentages because they go to patent owners.

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