strategy presentation

New Entrants VS eBay

High Barriers of New Entrants

When barriers are high, it is more difficult for new competitors to enter the market. High entry barriers positively affect profits for EBay.

High cost entry

High switching costs make it difficult for customers to change which products they normally purchase, due to costs. High switching costs positively affect EBay.

Industry requires economies of scale

When new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect EBay

Five Forces Model