The discussion of the existing situation in the company should include a complex assessment of its internal environment. It mainly includes the assessment of the products and services provided by the organization and the analysis of the revenue profile of the business. Thus, in this paper, the performance of the PayPal Company would be analyzed.
Products and Services
PayPal is an international payment system that provides opportunities for the delivery of payments to different locations without banking fees and losses for the parties. Currently, PayPal is one of the most popular payment systems, which provides a wide range of products and services. The basic list of services includes the following elements, namely PayPal Smart Connect, PayPal Extras MasterCard, eBay Mastercard, PayPal Cashback MasterCard, coupons and gift certificates, PayPal Shipping, mobile, PayPal Pools, PayPal Cash Card, and PayPal Business Debit MasterCard (PayPal, 2018). Each of these products should be discussed more carefully.
PayPal Smart Connect represents a credit line that can be used for purchases in any organization where PayPal is accepted. Such an opportunity is supposed to ease the purchases and funds delivery process for the clients of this payment system. Since the organization is popular among businesses, the opportunities for customers to use this option are significant.
PayPal Extras MasterCard, eBay Mastercard, and PayPal Cashback MasterCard are the payment options provided for the clients of the company to ease their payment processes. Using the issued cards of PayPal, people are capable to perform purchases online, by phone, or by mail. Each of these opportunities is available at any time without any delays or issues. The clients receive a wide range of opportunities for purchases. At the same time, each of the presented products provides its unique benefit.eBay Mastercard is optimal for purchases on eBay. At the same time, PayPal Cashback MasterCard is best for cashback. Altogether, the client-oriented approach can be seen in each of the products. At the same time, the flexibility in a choice of options is guaranteed.
Coupons and gift certificates are offered to clients to be sent as a present to their friends and relatives. The gift coupons provide an opportunity to perform purchases on eBay. Though the number of selling platforms is limited by eBay only, the scale of the platform makes it possible for the clients to find almost any required product there. At the same time, the existence of such an opportunity is a factor in clients’ loyalty formation.
PayPal Shipping is a service that aims to simplify the realization of shipping operations for the clients of the company. In this way, the payments for the shipping operation are managed by PayPal management, and the people can easily monitor and control the shipping operation. In this way, the risks for the counterparties are minimized since PayPal serves as an independent guarantee of the contract.
Mobile opportunities provided by the PayPal Company include the advantages of usage of PayPal services on mobile devices and easy access to all the products and operations from any location via smartphone.
PayPal Pools are created for clients that need to accumulate funds from friends and relatives at the time of need. Thus, they can use the options provided by PayPal to ease this process for themselves and the parties that wish to provide help to them.
PayPal Cash Card is the card connected with the personal account of the client and is affordable only for the personal account holders. The development of this product is supposed to ease the payment procedures for clients in the stores when offline.
PayPal Business Debit MasterCard is the analog to the PayPal Cash Card but adapted to the needs of the business clients. It provides all the similar opportunities for clients but also focused on the needs of business organizations.
The revenue profile of PayPal is presented in Table 1. The information for the analysis had been collected from the Craft official site which provides data about the financial performance of the leading companies in different industries (Craft, 2018). According to the recent information from the income statement of the PayPal Company, the business had managed to increase its revenues from $9.2 billion in 2015 to $13.1 billion in 2017 (Craft, 2018). The growth rate had reached the level of 42.4%. As for the net income which is the main parameter of a company’s profitability, the result changed from $1.2 billion in 2015 to $1.8 billion in 2017 (Craft, 2018). As for the structure of company’s expenses, the biggest rise of expenses had been demonstrated for the general and administrative expenses – from $560 million in 2015 to $1.2 billion in 2017 (Craft, 2018). As a conclusion, the performance of PayPal can be considered financially sustainable. The company did not face serious financial losses and risks in the medium-term perspective. The increase in administrative expenses can become a risk for the company in the future and should be controlled.
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The results of the analysis demonstrate the existence of the diversified structure of products and services provided by PayPal. The company aims to generate maximum flexibility for clients in their payment operations. Specific attention is paid to the provision of benefits for purchases. As for the revenue profile of the company, the sustainable growth of the business can be seen after analyzing all the numbers. In these conditions, the increase in administrative expenses is the only visible risk for the operations of the company in the future.