Marketing Strategy Case Study Ebay
Internal Factor Evaluation Matrix (IFE Matrix)
Critical Success Factors Weight Rating Weighted Scores
Strength
A savvy management team and a venture capital backing 0.20 3 0.60
Continuously well financial management and high gross margin profit 0.05 4 0.20
A flexible financial flexibility to pursued strategic acquisitions and alliances 0.05 3 0.15
Good relationship with strong channel suppliers 0.05 4 0.20
Well community building plan and strong brand loyalty and consumer involvement 0.20 4 0.80
Weakness
Management team can not make a decision on complete information and enough time 0.10 2 0.20
R&D need new technology to enhance trust and safety and decrease fraud and potential risk 0.20 1 0.20
R&D need more classified-specific search engine and more features 0.05 2 0.10
Investment and capital is not big enough 0.05 2 0.10
Can not provide free service 0.05 1 0.05
Total Scores 1.00 26 2.60
Lessons:
This table shows us to consider the whole things rather than just part of the factors. We can see that eBay has exhibit internal strengths but not too much. They can still work on some parts they are not good at but important. For example, improve new technology for enhancing trust and safety and decrease fraud and potential risk. In addition, they should work on something they did not do well, such as considering the importance of free service.
External Factor Evaluation Matrix (EFE Matrix)
Critical Success Factors Weight Rating Weighted Scores
Strength
Market tends to be more open to online auction 0.10 4 0.40 personal market become more important 0.10 4 0.40
Online auctions are one of the fastest-growing business models on the Web 0.05 4 0.20
The customer-to-customer online auction model is a new niche 0.10 4 0.40
The whole market is not well, people tends to sell more cost effective 0.10 3 0.30
There still more than 90% people have never used online auction 0.10 3 0.30
Weakness
Government begin to doing some regulations
Critical Success Factors Weight Rating Weighted Scores
Strength
A savvy management team and a venture capital backing 0.20 3 0.60
Continuously well financial management and high gross margin profit 0.05 4 0.20
A flexible financial flexibility to pursued strategic acquisitions and alliances 0.05 3 0.15
Good relationship with strong channel suppliers 0.05 4 0.20
Well community building plan and strong brand loyalty and consumer involvement 0.20 4 0.80
Weakness
Management team can not make a decision on complete information and enough time 0.10 2 0.20
R&D need new technology to enhance trust and safety and decrease fraud and potential risk 0.20 1 0.20
R&D need more classified-specific search engine and more features 0.05 2 0.10
Investment and capital is not big enough 0.05 2 0.10
Can not provide free service 0.05 1 0.05
Total Scores 1.00 26 2.60
Lessons:
This table shows us to consider the whole things rather than just part of the factors. We can see that eBay has exhibit internal strengths but not too much. They can still work on some parts they are not good at but important. For example, improve new technology for enhancing trust and safety and decrease fraud and potential risk. In addition, they should work on something they did not do well, such as considering the importance of free service.
External Factor Evaluation Matrix (EFE Matrix)
Critical Success Factors Weight Rating Weighted Scores
Strength
Market tends to be more open to online auction 0.10 4 0.40 personal market become more important 0.10 4 0.40
Online auctions are one of the fastest-growing business models on the Web 0.05 4 0.20
The customer-to-customer online auction model is a new niche 0.10 4 0.40
The whole market is not well, people tends to sell more cost effective 0.10 3 0.30
There still more than 90% people have never used online auction 0.10 3 0.30
Weakness
Government begin to doing some regulations