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B. Objectives.
To cope with the challenge of sustained growth.
To maintain its position as the dominant player in the auction industry. .
To retain its traditional values and community culture.
To respond to the increasing perception of neglect of its small merchant customers.
To grow the eBay community and strengthen its brand to attract new members and maintain the vitality of the eBay community.
To foster eBay community affinity and increase community trust and safety.
To broaden the company's trading platform by growing existing product categories and promoting new product categories.
To enhance website features and functionality.
C. Five Forces of Competition.
The rivalry among competing sellers v/s The major competitors of eBay in the online auction industry are Egghead.com, Yahoo! Auctions, Amazon auctions and uBid.com which is its main competitor. ebay's important competitive factors are its ability to attract buyers, the volume of transactions ad selection of goods, customer service, and brand recognition. In addition, eBay is also attempting to compete in other dimensions such as its sense of community, system dependability, reliability of delivery and payment, website convenience and accessibility, level of service fees and quality of search tools. Competitor rivalry is strong because customers can easily switch brands especially with costs of switching being very low. Rivalry is also high as all major players aim to increase its share in sales revenue and achieve market leader position. .
The potential entry of new competitors v/s Many companies are attracted and motivated to enter this industry due to its high profits and growth. These companies add competitive pressures in the market place. The entry of new firms, on one hand, is easy because of the easy access to distribution channels. Anyone with the Internet connection can access any auction sites regardless of how huge or how small the company is therefore new firms will have adequate access to consumers.