Introduction
The case study provided about the eBay online store allows you to consider, in this assessment, the start of online business and its development. For a PESTLE analysis relating to the eBay online store, materials from the study case, from available materials from online research sites and from the book “The Business Environment” Sixth Edition (Worthington, 2009), were used.
Question One
Case Study
“Pierre Omidyar sat down at his computer to write the code for what would become the business known as eBay. The San Jose, California-based company has 31,500 employees and $14 billion in revenue and has made Omidyar, now eBay’s chairman, one of the richest people in the world.” (Lapowsky, 2014)
Political
The eBay management, together with the government organizations of different countries, is considering legislation for authorized or prohibited goods in a particular country. For example, last year, in the UK, there was a burning question about the illegal sale of vehicle parts. The eBay management, together with the government organizations of different countries, is considering legislation for authorized or prohibited goods in a particular country. “Government activities, both directly and indirectly, influence business activity and government can be seen as the biggest business enterprise at a national or local level.” (Worthington, et al., 2009, p7) About Brexit in the UK, according to preliminary analysis, trading on eBay will incur no signtific. About Brexit in the UK, according to a preliminary analysis, trading on eBay will incur no significant losses due to the delivery of goods to place orders in the UK It is possible to increase in the price of the service of the board and it will be possible to introduce an additional state tax or duty. There may be restrictions on products for sellers from the EU.
Economic
Thanks to modern online technologies and capabilities, the number of consumers on the eBay platform has increased many times, and this has increased the company’s revenue. More and more direct manufacturers appear on the eBay website, offering new products. ” While it is best-known for auctions, 80% of UK sales now coming through new items of which the majority are fixed price.” (Chaffey, 2019) To avoid fraud, employees regularly update information for sellers. “We regularly announce about changes in our business on trading floors in order to increase sales and increase the efficiency of the seller’s work, increase his level of trust and confidence in the buyer. There is also a Safe Harbor data protection method and a standard purchase protection system. ” (Chaffey, 2019)
Social
Since 1995, eBay has been developing its capabilities in expanding business along with online technology and online social media. From the analysis produced by Giselle Abromovich, (2013) about the social evolution of eBay: “The company has several blogs like eBay Fashion and eBay Motors. eBay is also using visual platforms like Pinterest and Instagram to tell its stories through pictures.” Today, eBay is known worldwide and is the leading online trading platform. And now not only eBay writes blogs, but also sellers and consumers themselves. eBay seller center suggest that manufacturers use social media to grow their business and increase consumers. “Millions of people every day use social media. Platforms like Facebook, Twitter, YouTube, Pinterest, and blogs help connect people with shared interests.” (Seller center, 2019)
Technological
“Investment in technology and innovation is frequently seen as a key to the success of an enterprise and has been used to explain differences in the relative competitiveness of different countries.” (Worthington, et al., 2009, p9) According to technical data, eBay has 200 servers, which are divided into four parts, and all, 50 servers each, are located in the United States of America. This statistic indicates the fact of investments and the development of new features and technologies on eBay. From the analysis of the technological development of eBay, which is available in many countries, it is obvious that the technology of the party is powerful enough so that users from several countries can simultaneously not only be on the site but also make purchases or search for goods. “This infrastructure allows Millions of people to search, buy, and sell items at the same time. ”(Layton, 2019)
Legal
The whole page of the eBay site is dedicated to international legislation, consumer protection, tips on buying a car and, not least, instructions on how to avoid fraud or report it, Acts and Policies, etc. From the information on the page, it follows that the eBay is professionally organized and prepared for international business and the constant obdurate updating of information or notification of changes in laws or requirements indicates that the online store administrators are free to accept laws and requirements from of all countries that participate in this type of business. “You’ll find a summary of consumer laws to help you to understand the legal issues that affect you as a consumer and the laws that are designed to protect you.” (Safety Center, 2019)
Ethical
The eBay company is recognized as one of the most ethical companies due to international communication between sellers and consumers. Professional server staff will also ethically solve complex issues, difficult situations and create a friendly atmosphere in support of any business. For several years, eBay was involved in the nomination and got places for ethically created and fluttering business. “eBay recognizes the important role that principled practices play in brand reputation, which ultimately is the most valuable asset for a corporation.” (Brewer-Hay, 2011)
References
Hallsworth Michael, with Simon Parker and Jill Rutter (April 2011, p8), Report Evidence and Analysis “POLICY MAKING THE REAL WORLD” [online] Available at: https://www.instituteforgovernment.org.uk/sites/default/files/publications/Policy%20making%20in%20the%20real%20world.pdf [Accessed 10/05/2019]
Department of Health and Social Care, (February 2019, p7), “Strengths-based approach: Practice Framework and Practice Handbook” [online] Available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/778134/stengths-based-approach-practice-framework-and-handbook.pdf [Accessed 10/05/2019]
Chaffey Dave, (14 Jan, 2019), “eBay case study” [online] Available at: https://www.smartinsights.com/ecommerce/ecommerce-strategy/ebay-case-study-2/ [Accessed 06/05/2019]
Abramovich Giselle, (April 8, 2013), “The Evolution of eBay’s Social Strategy” [online] Available at: https://digiday.com/marketing/the-evolution-of-ebays-social-strategy/ [Accessed 06/05/2019]
Layton Julia, (2019), “How eBay Works” [online] Available at: https://computer.howstuffworks.com/internet/basics/ebay2.htm [Accessed 07/05/2019]
Lapowsky Issie, (Dec. 2013/Jan. 2014), Inc. Magazine [online] Available at: https://www.inc.com/magazine/201312/pierre-omidyar/ebay-inspiration-more-effective-than-delegation.html [Accessed 05/05/2019]
Brewer-Hay Richard, (Mar 16, 2011), “eBay Inc. Honored As One of the World’s Most Ethical Companies” [online] Available at: https://www.ebayinc.com/stories/news/ebay-inc-honored-as-one-of-the-worlds-most-ethical-companies/ [Accessed 08/05/2019]
Paul Sneha, (April 16, 2018), “The five key business benefits of GDPR” [online] Available at: https://www.openaccessgovernment.org/the-five-key-business-benefits-of-gdpr/44554/ [Accessed 11/05/2019]
Severs Aidan, (May, 16 2019), New Ofsted Framework 2019, “Summary Of What Schools Should Know” [online] Available at: https://thirdspacelearning.com/blog/new-ofsted-framework-2019-inspection-changes/#6 [Accessed 10/05/2019]
Safety Centre, (2019), “Know Your Rights” [online] Available at: https://pages.ebay.co.uk/safetycentre/rights.html [Accessed 07/05/2019]
Seller centre, (2019), “Build your business at the speed of social media” [online] Available at: https://pages.ebay.com/seller-center/listing-and-marketing/social-media.html#m22_tb_a1__1 [Accessed 06/05/2019]
Worthington Ian, Chris Britton, (2009), Book “The Business Environment” Sixth Edition, Chapter 1 “The general or contextual environment” pp 7-9 [Accessed 11/05/2019]
Watson Howard, Anthony Dempster, David Bennett and Susan Black, (September 30 2015), “The UK Consumer Rights Act 2015 – key changes that every consumer business should be aware of”, [online] Available at: https://www.lexology.com/library/detail.aspx?g=a86e26b5-2c03-4264-9cd8-1ce16ca7532e [Accessed 11/05/2019]
21.5.2019