According to our analysis, competitive rivalry within the industry, bargaining power of customers and the threat of new entrants are the three key forces which can pose a threat to eBay?s business. eBay faces huge competition from both online and offline sources, which restricts pricing increases on its marketplace. Due to relatively low barriers to entry, new companies continue to crop up in the global e-commerce market, further intensifying the competition. We encourage investors to watch out for the entry of Apple and Alibaba in the online payments space as it has the potential to disrupt the growth story at PayPal.
Source: Technology
Author
Harry Joiner
“… a dominant recruiter in the client-side multichannel ecommerce space …” — SearchEngineWatch.com