Yahoo! Auctions

An analysis of Yahoo! Auctions external and internal environment including recommendations, financial analysis, SWOT, key success and culture.

This paper examines how Yahoo! Auctions is currently within the online auction segment of the electronic retail industry. It looks at how it started in 1998 as a free service offering the ability to post auctions without a service charge. It analyzes how, in order for Yahoo! Auctions to increase their market share, they must first get their financial in order and how, the excess properties that Yahoo! Auctions has should be considered for divestiture. It also discusses how the next phase would be the identification of certain market segments that can either generate high user volume or capital in listing fees.

Outline
Introduction
Executive Summary
Business Case
Brief History: Timeline
Mission Statement
External Assessment
General Environment
Industry Analysis: Industry Attractiveness
Economic Structure
Porters Five Forces
Strategic Group Analysis
Competitor Analysis
Internal Assessment
Organizational Structure
Value Chain Analysis and Identification of Core Competency
Financial Ratio Analysis
SWOT Analysis
Recommendations
Managerial Implications
Epilogue
“The online auction industry, a segment of electronic retail is currently a monopoly. Ebay.com controls 69% of the market share with its closest competitor in the industry being Ubid.com with 14%. Even with this, Ubid.com has a different niche than Ebay.com by appealing to business-to-consumer transactions. Therefore, the closest competitor is Amazon or Yahoo! Auctions which do not even account for a quarter of the market. The reason that this monopoly is allowed to continue is because Ebay.com does not restrict any trade within the industry. There is room for new entrants but they too, must find a niche in order to gain entry.”