ASSIGNMENT ON: STRATEGIC MANAGEMENT
SUBMITTED TO: MERVYN SOOKUN
SUBMITTED BY: SAUMEN ADHIKARY
STRATEGIC MANAGEMENT Executive Summary:
Paypal is the largest e commerce business allows sending and receiving money through internet with safely. Transferring money with no traditional paper works and the process is quick as well. Actually PayPal is doing their business through the bank. They funded their account by a bank account or credit card at the person’s choice. Since 2010 paypal using bank verification because of security and safety reason. For exceeding the credit limit the payers must need to verify their bank account. Here I describe about their process of working, environmental analysis through swot, company brief and future project, their target and with own recommendation. ITRODUCTION:
PayPal permits to any business or person with a valid email address to securely and cost-effectively receive and send money online. PayPal builds on the already exist economic infrastructure of bank accounts and credit cards to make a worldwide payment solution. They deliver product fit for small trade, online payers, personal and others recent activities by traditional payment value. The size of the network and expending acceptance of reliable service assist paypal to become no 1 leading networks in online payments solution. PAYPAL WORKING PROCESS AND TIMELINE:
After opening in account with paypal must need to verify by bank statement document. They send a few amount of money to the bank statement and we need to submit the amount in payal website. And code verification as well. The funding hierarchy working process: * A PayPal account with balance
* Paypal extra, Paypal credit card, Paypal smart-connections or pay later option * A valid registered bank account
* Different payment options such as non PayPal account
* The receiver can either request a check from PayPal established their own PayPal balance to their account. * Paypal charges a bit to transfer the money they just work as a medium to make the internet paying process securely
Timeline: Confinity was found in last of 1998 by Max Levchin, Peter Thiel, Luke Noesk and Ken Howery at the beginning time it was a palm pilot payments and cryptography organisation. And the X.com was founded by elon musk in March 1999, that time it was internet financial service. Two organisation confinity and x.com lauched their website in 1999. They working together in palm pilot. In 2000 paypal was founded in between confinity and x.com. To block the fraud accessed by automated system, paypal used a system called CAPTCHA by entering number from a picture. That time ebay become more popular and they also need to fix an online payments sysmstem, because the increase of online shopping. After that ebay is announced paypal as their official payment method. In January 2008 paypal connected with new technological company which was situated in israil, starting balance of $168 million, for improving eBay and PayPal security managing system. Paypal use total amount pay volume and the total amount of money was $60billion increase rate is 27% over the last year. As 2011 paypal controls in 195 marketplace and handle nearly 235 million user accounts and above 105 million accounts are active. SWOT ANALYSIS OF PAYPAL:
* Their business is totally cost effective
* The communication system is far better from the past, paypal take the great advantages from it. * Now online shopping is very popular so its online growth is outstanding * They got a big hand of loyal customer
* They leading the market share with high growth rate. At this moment they don’t have any strong competitor as well. * Paypal has a strong brand image and well known to globally * They have the powerful financial stability. Lots of liquid money and capital. * Their price reasonable and...
References: 1) Hitt, Ireland, Hoskisson (dec 2011), strategic management, competitiveness and glovalisation 9th edition.
2) Philip Sadlar, James C. Craig(2003), Strategic Management 2nd edition
3) Gregory G
4) Charles W.L. HILL, Gareth R. Jones( 2007), Strategic Management: An integrated Approach 8th edition.
7) THE ECONOMICS TIMES (APRIL 6. 2012)
8) ONE INDIA NEWS (JAN 6 ,2012)
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