Strategic Management

Strategic Management

Strategic Management
Short Essay
[Name: Ang Zhi Qi Eleanor]
[Due Date: 6th June, 2016]

1. Introduction – Inside PayPal
PayPal was founded in December 1998 and its’ headquarter is located in San Jose California. PayPal runs as a technology platform company that provides people with better ways to manage and move their money, offering them choice and flexibility in how they are able to send money, pay or get paid (PayPal, 2015).

PayPal earns its success through serving the eBay community after six months realising that its original idea of developing and designing an electronic wallet does not work out. PayPal was opened to the public in 2002, allowing Max Levchin, the founder of PayPal an easy way to turn his 2.3 percent stake into cash (Cohan, 2012, pp.42-43).

2. Value Chain Analysis
2.1 Technology Development
PayPal has been constantly focused on technological development that it is making up a technology regime. PayPal makes use of existing technology components and systems. PayPal expands and begins to adopt their offerings to different platforms, from eBay, to the e-commerce sites to mobile ecosystems such as iOS and Android. This is how PayPal grow organically and slowly begun to attack the payment ecosystem.

PayPal collaborates and partners with different actors in the payment market. For example, they collaborate with all the major payment cards companies like VISA, MasterCard. PayPal also collaborates with e-commerce firms, by having an API to enable integration between PayPal and e-commerce sites (Linawati et al., 2014).

2.2 Operations
One of the operation that PayPal provides is the PayPal Application Program Interface (API). There are many different kinds of API PayPal provides and there is the life cycle of an API call. This API call goes through the same steps, or life cycle and it runs...

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