4. eBay is positioned well to successfully compete with its top three competitors, Amazon, Google and Overstock. Table 1 provides a financial comparison of eBay with its top three competitors. eBay is a distant third from Google with a market capitalization of $64 billion but is first or second in key ratio comparisons (eBay Direct Competitor, 2012). Specifically, eBay is first or second in several key ratios such as Gross Margin, Operating Margin, Earnings Per Share and Price/Earnings. The Operating Margin of 21% for the trailing twelve months as compared to its competitors and the industry is a strong indicator that eBay is positioned well in the catalog and online sales sector. Its steady operating margin increase indicates it is earning more per dollar of sales and is operating a more efficient business as compared to competitors and its own performance in past years. eBay has grown from an online auction service to the premier global commerce platform and payments leader through a focused acquisition strategy to enable merchants to more easily integrate online and offline commerce efforts. By covering the wide array of e-commerce opportunities and driving more efficient merchant and consumer interactions, eBay is positioned well to compete with Google, Amazon and Overstock. The eBay subsidiary PayPal enables individuals and businesses to securely, easily and quickly send and receive online payments and is a cash cow for eBay. PayPal is the industry leading payment service and is utilized by eBay competitors Amazon, Google and Overstock. Finally, the X.commerce platform brings together the technology assets and developer communities of eBay, PayPal and Magento as an ecommerce storefront platform enabling open source commerce from local to global markets. diffrentaition
eBay will continue to be a market leader if they are able to continue differentiating themselves by focusing on their brand image, continuing to offer innovative features, and supplying a...
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