Strategic Analysis of Paypal Holdings

Strategic Analysis of PayPal Holdings

PayPal’s Business and Strategy

PayPal Holdings, Inc. operates as a technology company focusing on digital and mobile payments targeting merchants and other direct customers. The company provides online payment solutions serving customers across the world. The company can execute payments across various platforms guided by customer preferences ranging from the PayPal Smart Connect, bank accounts, and credit cards that are processed through secured digital platforms. The digital and mobile solutions offered by PayPal have helped position the company as a leader in its market segment with over 203 million accounts. As an enabler of e-commerce, the company has managed to form strategic partnerships with various companies traversing 202 countries and enabling transactions in 25 currencies (PayPal n.p). PayPal focuses on the differentiation strategy to drive value for its customers while building its competitive advantage.

The company operates as a global technology platform linking merchants and customers in the facilitation of payment transactions. The company earns from sales involving payments undertaken within its platform, which is a primary source of revenue among other value-added services such as gateway services and PayPal credit. PayPal Holdings is guided by its strategic principle that highlights the commitment towards harnessing the power of people, technology, and scale that will facilitate the creation of a global network that will sustain its market share.

PayPal Holdings has sought to create a leading online payment service that incorporates various technologies to adapt to changes in its target market. Besides, the company focus on holding funds and other value-added services helps the organization diversify its revenue sources informed by the opportunity to tap into other investments areas that will facilitate the growth of its market equity. PayPal addresses security issues linked to online transactions especially for PayPal customers where personal information can be subjected to identity theft. Service uniqueness is also defined by the value-added services that include Braintree Gateway and Payflow Gateway that facilitate debit and credit card payments.

The company has sought market growth based on the level, which it leverages technological applications transitioning from the website payments involving merchants to linking up with mobile devices and physical stores (Soper n.p). This defines its resource capabilities taking advantage of e-commerce to position itself as a premier digital payment platform.

Through partnerships, PayPal has managed to sustain its unique value as more financial market players view the company as a collaborator than a disruptor. There is movement into multiple commerce channels taking advantage of the e-commerce space going into emerging markets. There is the opportunity to address emerging market needs through innovation and enhancing consumer value by matching a preferred mode of payment.