Essay --

1.0INTRODUCTIONThis report will attempt to critically analyse and assess the upcountry and external factors which effected the strategic decisions made by eBay. These strategic decisions consisted of the acquisitions with Skype and PayPal coupled together with an analysis on why eBay failed may have failed in expanding their online presence in eastern parts on the globe such as China. 2.0BACKGROUNDEBay is an American internet based co-operation with its main headquarters in California. It was source set up in 1995 and has become one of the worlds most successful companies ever with ebay.com being the companys main theatre of operations of focus. Ebay.com is an online auction and shopping website where people and business have the opportunity to sell and buy goods and services worldwide.3.0THE INTERNAL AND EXTERNAL ENVIRONMENTE-marketing is a fast ripening and rapid platform for any form of business. EBay has been highly successful over recent years and this is a perfect example of an online business. The internal and external environments be constantly changing and in order to keep up with these changes, businesses and organisations must make relevant changes, and generate new strategies to keep up with contemporary developments in e-marketing and to also maintain their position in their market in comparison to their competitors. The strategic decision to form an acquisition with Skype in 2005 was made and the deal was express to be worth $2.6 billion. It is argued by eBay that with Skype it is able to create an un-paralleled e-commerce engine. This acquisition was a follow up of purchasing PayPal in 2002. Acquiring these prominent companies has allowed eBay to talk through ones hat greater links on order to dominate specific regions of the world. Thes... ...ount of untrustworthy and reliable sellers. EBay could counteract this problem by implementing a strategy where eBay would have the license to terminate a users account if their rating in percent age dropped below 60%. This strategy may help the organisation to inflict the amount of unreliable seller resulting in a much more safer and reliable market platform where people would be able to purchase products at ease without any hassle.6.0CONCLUSIONIn light of the analysis made above an attempt has been made construct a critical analysis of the internal and external environment which influenced eBays strategic decision to form acquisitions with Skype and PayPal along with its performance in eastern countries. These factors were supported through various forms of research and range reading in order to support the validity of the points raised in this report.