FACULTY OF COMMERCE

CORPORATE FINANCE STRATEGY

SUBMITTED TO:
PROF. AAMIR ILYAS
SUBMITTED BY:

FATIMA ZAHRA
G1F17BSCM0002
BS. COMMERCE - 7
ASSIGNMENT NO. 3
Submitted Date: 22-01-2021
 EFE
(EXTERNAL FACTOR EVALUATION)
Item Key external factor Weight Rating Weighted
s

Opportunity

1 The requirement for generous 0.09 4 0.36

asset interests in innovation
and showcasing to stay serious.
2 Purchasers and merchants 0.08 4 0.32
appreciate exchanging among a
wide determination of
merchandise and ventures in a
safe, trusted, and productive
trade climate.
3 Benefit is likewise influenced 0.07 3 0.21
by money trade rates
4 Online classifieds help 0.07 3 0.21
individuals meet, share
thoughts, and offer
merchandise/administrations at
a neighborhood city or
provincial level.
5 On the off chance that the U.S. 0.06 3 0.18
dollar debilitates against
unfamiliar monetary standards,
exchanges directed in
unfamiliar money groups will
increment and swell incomes,
working costs, and total
compensation.
 Threats

6 What's more, charge 0.08 4 0.32

consistence will build costs.
7 Powerless worldwide monetary 0.08 4 0.32
conditions, notwithstanding the
home loan and overall credit
related monetary emergency,
are required to restrict income
development, especially in the
commercial centers portion,
which is intently attached to
purchaser buy designs.
8 The assets of existing 0.07 3 0.21
contender firms are bigger and
thus, contenders could climate
a financial plunge.
9 Rivalry is extreme in 0.06 3 0.18
correspondences
administrations and subject to
fast innovative Change.
10 Nonetheless, Amazon's solid 0.06 3 0.18
development and fulfilled
client base represent the best
danger to eBay.
11 Enactment is essentially which 0.06 3 0.18
requires assortment of
assessments starting after
December 31, 2010. This new
enactment may cause a
decrease in exchanging action
that would adversely influence
 a few business sections.
12 Commercial centers: Rivalry is 0.05 3 0.15
required to increment later on
in light of the fact that
obstructions to passage in this
section are low and new online
locales can be dispatched at an
ostensible expense.
13 Declining economic 0.05 3 0.15
environment.
14 Dollar and the lingering weak 0.05 3 0.15
economy with high
unemployment.
15 Then again, monetary estimates 0.05 3 0.15
will be contrarily affected by
an ascent in the estimation of
the U.S. dollar.
Total 1 3.27
 CPM
(COMPETITIVE PROFILE MATRIX)

eBay Amazon
Key Success Factors Weight
Rating Score Rating Score
Providing Value to 0.30 3 0.90 4 1.2
Consumers

Reliability & Trustworthy 0.28 3 0.84 4 1.12

Friendly Interface 0.18 4 0.72 4 0.72
Brand Image & Reputation 0.14 3 0.42 4 0.56
Financial Position 0.10 2 0.20 4 0.40
Total 1 3.08 4
 IFE
(INTERNAL FACTOR EVALUATION)
Items Key external factor Weight Rating Weighted
Score

Strength

1 eBay's Commercial centers stage 0.10 4 0.40

unites purchasers and merchants
through completely
computerized online Sites.
2 In 2008, eBay.com produced 0.09 4 0.36
roughly $59.7 billion in gross
product incomes with buyer
gadgets representing the biggest
level of exchange at $6.0 billion
or 17 percent.
3 eBay.com offers a sense of 0.09 4 0.36
community to buyers and sellers
that is sustained by
Communications and high
transaction rates on a wide\
selection of goods/services.
4 In 2007, eBay sold almost $60 0.07 4 0.24
billion products, which likens to
overall eBay clients exchanging
more than $1,900 worth in
merchandise each second.
5 In August 2009, eBay Inc. 0.06 3 0.18
framed an association with
General Motors empowering
 many GM vendors in California
to assist customers with
arranging acquisition of new GM
vehicles and trucks through the
eBay online commercial center.
6 The achievement of eBay is 0.07 3 0.21
based on comparative client
driven enterprising plans of
action that attention on client
driven worth creation.
7 eBay gives the virtual 0.06 3 0.18
commercial center closeout
where the market decides the
cost of things sold.
8 eBay contrasted with Amazon 0.06 3 0.18
accomplished High gross net
revenues. High in gross net
revenue can be considered as a
strength for eBay.
9 As of December 2008, around 0.05 3 0.15
516,000 online customer facing
facades were recorded in areas
across the globe.

Weaknesses

10 eBay's Commercial centers division 0.05 3 0.15

revealed $1.26 billion in income, a 14
percent year-over-year-decay.
11 The German Government High Court 0.05 3 0.15
has likewise decided that eBay may owe
punishments from unlawful postings of
 fake and taken products. These occasions
may likewise adversely influence eBay's
standing.
12 eBay has as of late been engaged with 0.05 2 0.10
case with Tiffany and Co., Rolex, Louis
Vuitton, Christian Dior, L'Oréal, and
Lancôme for an absence of policing
exchange and encroachment on brand
names and copyrights for the offer of
"not for resale" and fake things on eBay's
Sites
13 Decreased to almost double for working 0.04 2 0.08
capital is considered as weakness for
eBay.
14 Client assistance. Client care is tested 0.04 2 0.08
from more prominent exchange
movement and an expanded number of
clients.
15 On the off chance that income essentially 0.04 2 0.08
decays, eBay will most likely be unable
to meet legally binding commitments.
eBay as of late expanded its expense
structure for its Commercial centers
business, which may adversely affect the
quantity of new clients and income from
existing clients.
16 eBay Income Development of rate has 0.05 2 0.10
been diminishing throughout the
previous 3 years. Subsequently, this
decay pattern prompted diminishing the
development rate in 2009 by 4%. This
income decrease pattern is considered as
the shortcoming of eBay.
17 Site Solidness. Expanded volume and 0.03 2 0.06
more noteworthy intricacy require extra
costly interests in equipment,
programming, and work force.
Total 1 3.10
 SWOT Matrix
Strengths Weakness
eBay's Commercial eBay's Commercial
centers stage unites centers division detailed
purchasers and venders $1.26 billion in income, a
through completely 14 percent year-over-year
computerized online decrease.
Sites.

In 2008, eBay.com The German Government

produced roughly $59.7 High Court has
billion in gross product additionally decided that
incomes with customer eBay may owe
hardware representing punishments from
the biggest level of unlawful postings of fake
exchange at $6.0 billion and taken merchandise.
or 17 percent. These occasions may
likewise contrarily
influence eBay's
standing.

EBay.com offers a eBay has as of late been

feeling of local area to engaged with prosecution
purchasers and merchants with Tiffany and Co.,
that is supported by Rolex, Louis Vuitton,
Interchanges and high Christian Dior, L'Oréal,
exchange rates on a wide\ and Lancôme for an
determination of absence of policing
merchandise/services. exchange and
encroachment on brand
names and copyrights for
the offer of "not for
resale" and fake things on
eBay's Sites.
In 2007, eBay sold Decreased to practically
almost $60 billion twofold for working
merchandise, which capital is considered as
likens to overall eBay soft spot for eBay.
clients exchanging more
than $1,900 worth in
products consistently.
In August 2009, eBay Customer Help. Client
Inc. shaped an assistance is tested from
association with General more prominent
Engines empowering exchange action and an
many GM sellers in expanded number of
California to assist clients.
shoppers with arranging
acquisition of new GM
vehicles and trucks
through the eBay online
commercial center.
The achievement of eBay If income essentially
is based on comparable decays, eBay will be
client driven enterprising unable to meet legally
plans of action that binding commitments.
emphasis on client driven eBay as of late expanded
worth creation. its charge structure for its
Commercial centers
business, which may
adversely affect the
quantity of new clients
and income from existing
clients.

eBay gives the virtual eBay Income

commercial center sale Development of rate has
where the market decides been diminishing
the cost of things sold. throughout the previous 3
years. Accordingly, this
decay pattern prompted
diminishing the
development rate in 2009
by 4%. This income
decrease pattern is
considered as the
shortcoming of eBay.

Opportunity
The need for substantial
resource investments in
technology and marketing in
order to remain competitive.
Buyers and sellers enjoy
trading among a wide
selection of goods and
services in a secure, trusted,
and efficient commerce
environment.
Profitability is also affected
by currency exchange.
eBay contrasted with
Amazon accomplished
High gross net revenues.
High in gross net revenue
can be considered as a
strength for eBay.
As of December 2008,
around 516,000 online
retail facades were
recorded in areas across
the globe.
S-O
With the High in gross profit
margin of eBay, this company
should expand their market
into global, new and
emerging market especially
new market in China and
India which they are
considered as the most
populated area and it is a
huge opportunity for eBay.
(global expansion) (S2, S4,
S8, S9, O1, O5)
With focus on customer-
driven value creation, eBay
should continuously maintain
simplicity of interaction with
the online community’s
capability and meet the
demand in the industry in
order to be competitive. (S3,
S4, S6, O1, O2,04)
Web Webpage
Steadiness. Expanded
volume and more
prominent multifaceted
nature require extra
costly interests in
equipment,
programming, and work
force.
W-O
Improve market services in
current markets can make
large number of potential
customers to subscribe. (W 2,
W3, W6, O1, O2)
Strategic Alliance with
courier companies and by
providing online banking
system can help eBay to
improve the efficiency of the
operation system and could
help to give the best service
for customers satisfaction.
(W5, W6, W8,02,04)
Inability of eBay to measure
illegal activity on site and
lacking of policing trade

Online classifieds help people
meet, share ideas, and offer
goods/services at a local city
or regional level.
If the U.S. dollar weakens
against foreign currencies,
transactions conducted in
foreign currency
denominations will increase
and inflate revenues,
operating expenses, and net
income.
Threat
In addition, tax compliance
will increase costs.
Weak global economic
conditions, in addition to the marketing and management
mortgage and worldwide
credit related financial crisis, T2, T3, T4, T5, T9)
are expected to limit revenue
growth, particularly in the
Marketplaces segment,
which is closely tied to
consumer purchase patterns.
The resources of existing
competitor firms are larger
and as a result, competitors
could weather an economic
downturn.
Competition is intense in
communications services
and subject to rapid
technological Change.
S-T
Through acquisition
strategy, eBay should be
able to expand in global
(global expansion). (S4, S5,
S9, T9)
eBay should reinforce
system. (S1, S2, S6, S8, S9,
eBay should be able to
provide system for online
verification of products. (W2,
W3, O1, O2)
W-T
eBay should alliance with postal
services (W5, W8, T2, T3, T4,
T5)
With the issue of stolen goods
and lacking in policy, eBay
should invest in customer
service web security. In
addition, eBay also should
provide an authentication
consumers identity in order to
provide a secure environment
online system. (W2, W3, W5,
T2, T5)
eBay should recover the
financial crisis of the
organizations by rearrange the
website policies and features to
make it user friendly including
wide range of offering. (W1,
W3, W4, W6, W7, W8, T1,
T2, T 4, T6, T7, T8, T10)
eBay should be able to develop
its product as well as its market
(new and emerging market)
especially in the high populated
area like China and India. (W7,
 T2, T3, T5)
However, Amazon’s strong
growth and satisfied
customer base pose the
greatest threat to eBay.
Legislation is in effect
which requires collection of
taxes beginning after
December 31, 2010. This
new legislation may cause a
reduction in trading activity
that would negatively affect
several business segments.
Alternatively, financial
measures will be negatively
impacted by a rise in the
value of the U.S. dollar.
Dollar and the lingering
weak economy with high
unemployment
Marketplaces: Competition
is expected to increase in the
future because barriers to
entry in this segment are low
and new online sites can be
launched at a nominal cost
Declining economic
environment