Case Packet: “PayPal in 2015: Reshaping the Financial Services Landscape”, Robert Burgelman, Henry Lippincott and Robert Siegel, Stanford Business School, Case E-572, November 25, 2015, 33p.
Video: “PayPal in the Digital Revolution Sweet Spot, CEO, Dan Schulman”, Mad Money (CNBC) September 2015.
It’s July 2015 and PayPal has recently been spun-off from eBay. Dan Schulman, PayPal’s CEO, has a vision for PayPal and has asked you to come to Saturday’s senior staff off-site meeting prepared to talk about what direction you think PayPal should follow now that its separation from eBay and its flotation as a separate stock has been completed.
The digital payments industry continues to evolve and expand in the US and globally. There are so many opportunities that the now independent company needs to decide what products and markets it should focus on.
Specifically, Schulman would like you to address the greatest risks in the next five years, identify any appropriate changes to the company’s business model, and come up with recommendations and a prioritized action plan to start implementation.
How is the digital payments industry influenced by macro-environmental trends and the drivers of competition?
What does the PayPal business model look like after its e-Bay separation?
What distinctive competencies does PayPal have? What gaps should it be most concerned with?
Does the value proposition today fit what customers look for? How will it look for in the future? Who are the firm’s most formidable competitors?
How does PayPal compete without eBay and how should it compete in the future?
How should PayPal grow? What markets should PayPal focus on?
How can PayPal sustain a competitive advantage with rapidly changing technologies?
Additionally, add a Postscript to your Case Analysis which brings the case up to the present day.