(Appendices not included) eBay should continue to focus on growth and continue to fight off competition from rival companies. eBay has dominated the U.S. online auction market since its inception in 1996. Current market conditions are changing, and eBay must position itself for continued growth. eBay has met most of the key success factors outlined in Appendix 1, but must continue to focus on them to sustain current growth. eBay's two key challenges include continued growth and evolving business model. GrowtheBay's growth so far has been exceptional, but as market conditions slow, eBay needs to attract new customers to continue its current growth. eBay has gained a competitive advantage in the online auction market, but must now transfer this success to further expansion into international markets. One of eBay's weaknesses as a SWOT analysis (Appendix 2) is that eBay did not prepare for the slowdown in the US market. Yahoo's exit from some international markets leaves a larger market segment available for eBay to absorb. LeBay is expected to gain a competitive advantage over other online retail companies by continuing to expand into international markets. The emergence of the Asian and European markets (due to increased Internet access) creates a good opportunity for eBay to establish itself as a global leader in online retailing. By taking advantage of opportunities to capture the market early, it will be easier for eBay to introduce new products for continued growth. Y/eBay should also consider expanding some of its key categories to capture a larger market share in that sector. Some of eBay's top categories capture only 1-5% of the total market for that good. For example, eBay's largest auction category (eBay Motors) has less than 1% market share in the $7.5 billion auto industry. This represents a significant growth opportunity that eBay can take advantage of. eBay would also take the next two largest categories (consumer electronics and computers) and combine them to create eBay Electronics, which would be a separate site through eBay, similar to eBay Motors. By creating eBayElectronics, eBay can focus more on its most popular categories to offer a greater selection of products and information about the electronic items it sells. Evolving Business Model Another weakness that eBay has shown in the attached SWOT analysis (Appendix 2) is that the company has little experience with fixed-price sales. To sustain its success, eBay must possibly offer more fixed-price sales to better compete with Amazon.com and Yahoo. eBay must transfer its competitive advantage in the online auction sector to the area of