Paypal Ms Case in Harvard Business Review

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PayPal Merchant Services: Harvard Case

Services Marketing

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• Founded in December 1998, PayPal is a leading global online payment company.

• Purchased by eBay in October 2002.

• Over 100 million registered accounts globally and available in 55 markets.

• PayPal has a local presence in 13 countries outside the US, including UK, Canada, Australia, Austria, Belgium,France, Germany, Italy, Spain, Ireland, Netherlands,Switzerland and China.

• Supports payments in U.S. Dollars, Canadian Dollars,Australian Dollars, Euros, Pounds Sterling,Chinese Yuan

• Regulated by the FSA.

• Passported License to 25 EU countries.

• Becoming a major player in the Merchant (off-eBay) space.

• Our cross border product is
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So seeing the above points Pay Pal should rather go for SME rather than big customers as the number of SME in cyber space is huge.It includes small consulting firms,Bloggers,Service based websites,Ad earnings,free lancers etc.

So PayPal should concenterate on them now and many of SME would become large organizations tomorrow thereby increasing the revenue of PayPal.

Q5: Finally, should PayPal forge strategic partnerships to check Google Strategy?

We can understand it on the basis of two scenarios

Scenario 1 :

Paypal ties up with Yahoo !,MSN

If PP ties up with google competitor it can give good head on competition to Google in the ‘Pay per purchase’ segment.It can offer its existing customers this option similar to google and earn more revenue and increase customer loyalty at the same time.

As per the case,most of the sales are initiated through Web Searches.So if some partnership comes through,it can give a lot of edge to PayPal as it is a trusted brand in the domain

Scenario2 :

Paypal ties up with Yahoo !,MSN

If PayPal ties up with some Google competitor,it can dilute PayPal’s brand.PayPal’s core