Amazon:

Division 1 2 US International Total Revenue 254000 345000 599000 % of revenue 42 58 100 Profit 12500 14000 26500 % of profit 47 53 100 IFE score 3.40 3.50 EFE score 3.60 3.50

IFE Total Weighted Score Strong (3.0 to 4.0) High 3.0 to 4.0 EFE Total Weighted Medium 2.0 to 2.99 Score
1

average (2.0 to 2.99) weak (1.0 to 1.99)

(2)

Low 1.0 to 1.99

According to the above matrix Amazon is falling into cell (I). It is internally strong in well growing environment opportunities. Amazon has grown and builds options because it falls in cell (I). Market penetration, market development, product development and backward, horizontal, forward integration. Amazon can peruse Market development strategy in terms of approaching new segments and non-serve areas with its products to gain more market shares and new opportunities.

EBay:
Division 1 2 US International Total Revenue 9616 12502 22118 % of revenue 43 57 100 Profit 5808 7751 13559 % of profit 44 56 100 IFE score 3.30 3.10 EFE score 3.40 3.20

IFE Total Weighted Score Strong (3.0 to 4.0) High 3.0 to 4.0
(2) (1)

average (2.0 to 2.99) weak (1.0 to 1.99)

EFE Total Weighted Medium 2.0 to 2.99 Score

Low 1.0 to 1.99

According to the above matrix EBay is falling into cell (I). It is internally strong in well growing environment opportunities. EBay has grown and builds options because it falls in cell (I). Market penetration, market development, product development and backward, horizontal, forward integration. EBay can peruse product development strategy in terms of providing more flexibility of packages by more customization in its other business segment to gain more market shares.

Comparative analysis on the basis of IE Matrix;

IE Matrix of both organizations have similar set of strategies because both of the organizations are falling in the cell (I), as they are internally strong in the relatively growing industry. The

essence of competition is very high because both have sufficient resources to capitalize new opportunities provided by external environment. For gaining and maintaining the competitive advantage would be critical phenomena among them because of having about same product. Ebay is tending towards more on unrelated diversification by entering into new businesses to gain more market share and AMAZON s major focus on the innovation. According to the matrix results both are the feasible strategies to peruse but the success factor lays in the effective results and outcome of the strategies.

SPACE MATRIX (AMAZON)

Financial Strength (FS) Working capital Net income Revenues Cash flows Total average score: Industry Strength (IS) Barriers to entry Growth potential Technological advancement Resource utilization Total average score: Competitive Advantages (CA) Market share Price competitiveness Customer loyalty Convenience Total average score: Environmental Stability (ES) Rate of inflation Tax & interest rate Competitive pressure Technological change Total average score:

+6 +4 +6 +6 5.5 +3 +5 +5 +5 4.5 -1 -2 -1 -1 -1.25 -3 -4 -3 -3 -3.25

X-axis = IS+CA = (-1.25) + 4.5 = 3.25 Y-axis = FS+ES = (-3.25) + 5.5 = 2.25

SPACE Matrix

Conservative
+6

FS
+5 +4 +3 +2 +1

Aggressive

X-axis = 3.25 Y =axis=2.25

CA
-6 -5 -4 -3 -2 -1

IS
-1
-2

+1

+2

+3

+4

+5

+6

-3 -4

Defensive

-5
-6

Competitive
ES

Therefore, AMAZON lies in the first quadrant as financially they are strong, and a relative growing industry. So, AMAZON has strategies under this quadrant: 1. 2. 3. 4. Backward, forward, horizontal integrations. Market penetration Product development Diversification (related & unrelated)

As the matrix result shows that AMAZON financial position is strong and in the relative growing industry they can go for product development to customize their website providing more products listing, and providing customers value addition like more fulfillment centers for on time delivery.

Space Matrix EBay;

Financial Strength (FS) Net income Revenues Earring per share Total average score: Industry Strength (IS) Barriers to entry Growth potential Technological advancement Total average score: Competitive Advantages (CA) Market share Financial position Customer loyalty Total average score: Environmental Stability (ES) Rate of inflation Tax & interest rate Exchange rate Total average score:
X-axis = IS+CA = 6.00 2.33 = 3.67 Y-axis = FS+ES = 5.00 2.34 = 2.66

+5 +6 +4 5.00 +6 +6 +6 6.00 -1 -3 -3 -2.33 -4 -2 -1 -2.34

SPACE Matrix

Conservative
+6

FS
+5 +4 +3 +2 +1

Aggressive

X-axis = 3.67 Y -axis=2.66

CA
-6 -5 -4 -3 -2 -1

IS
-1
-2

+1

+2

+3

+4

+5

+6

-3 -4

Defensive

-5
-6

Competitive
ES

Therefore, Ebay lies in the first quadrant with sound financial position, and a relative growing industry. So, Ebay has strategies under this quadrant: 1. 2. 3. 4. 5. Backward, forward, horizontal integrations. Market penetration Market development Product development Diversification (related & unrelated)

As the matrix result shows that Ebay s financial position is sound and operating profitably in the relative growing industry. Market development would the considerable strategy to interact the new customers layers by focusing under serve markets.

Comparative analysis on the basis of SPACE Matrix;

According to the results produced by SPACE Matrix of both organizations it can be concluded that, both organizations have very close and similar results in the form of sets of alternative strategies. Both organizations are falling in the same quadrant (aggressive) and both have strong financial position to gain the benefits of opportunities. The point of differentiation would be created between organizations by gaining competitive advantage through adapting the updated and revolving technological changes and there services offerings and by serving new segments and markets. Valuable customizations in packages and through diversifications (related & unrelated). Intensity of competition will be high in the industry because of the substitutable services; they need more effective and innovative market plans and business development strategies to remain in competition.