Wednesday, March 30, 2011

Blog 2, Juli Digate: The Decline of PayPal?

In the article "Competitor Analysis: Understasnd Your Opponents," we learned that strategy is dependent on a proper analysis of the market. A huge aspect of this is analysis of current and potential competitors, as Porter discussed in the "threat of rivals" and "substitutes" aspects of his industry analysis.

Recently, American Express launched "Serve," an online payment system that will be a new competitor for PayPal. Paypal has recently released expansion plans, and experts are speculating on the impact of a new competitor in their plans. Read more on American Express' new venture and how it rivals PayPal:
What strengths do you think American Express brings to the table that PayPal does not? Do you think PayPal included traditional credit card companies in their competitor analyses (assuming they did these)? If you were assessing the likelihood of Serve's success in the next few years, or the probability that they would be a viable alternative to PayPal customers, what would you say?

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