Executive Summary: The e-commerce industry has become a major player in the global retail environment. E-Bay's long operating history has allowed the company to build a social capital of Internet buyers and sellers that has now become its competitive advantage. However, intense competition in e-commerce has led major players to lead expansion efforts in foreign markets where growing economies exist and the number of Internet users is plentiful. As a facilitator of online buyer-seller transactions, the only obstacle the company needs to overcome is to quickly introduce its presence in new foreign markets where growth opportunities have been identified. Industry Analysis: The online auction industry is currently in the growth phase of its life. cycle. Low prices and the convenience of a search-and-buy environment offered at home will continue to drive strong demand in international e-commerce beyond 2009. International e-commerce will account for more than double the amount of all Internet transactions compared to the United States . (See Attachment A). Aside from the existing opportunities in international e-commerce, low barriers to entry will continue to attract new competitors who will launch online retail sites at minimal costs and in a short space of time using commercially available software, and offline retailers to develop online sites like BENE. Since the industry is relatively new, competitors will need to focus on many factors such as the ability to attract buyers, transaction volume and selection of goods, sustainable trust, and the ability to maintain low fees and commissions. The power of suppliers in the online auction industry will force competitors to reduce selling costs to maintain a large supplier base and...... middle of paper... eBay due to inventory obligations that must be respected to the customer. As a result, eBay passes on almost all of the value to its customers, while online retailers are responsible for reporting the products on their books which in turn are passed on to their customers. Ultimately, eBay will be able to compete successfully against new and more diverse competitors. like paid search engines if it forms strategic alliances that will bring value to both companies. eBay can offer paid search engine marketing and promotional opportunities and benefit from attracting more customers to its online platform by partnering with search engines to be the top result for online trading. The company will need to continue to monitor emerging paid search engines to ensure it can take advantage of all the opportunities that come with a paid search engine partnership before its rivals can...