Organizational Changes at PayPal Essay Example | Topics and Well Written Essays - 2000 words

Organizational Changes at PayPal - Essay Example The rapid growth enjoyed by this company has been as a result of changing its strategy to suit the needs of the customers and at the same time ensure maximum safety for online transactions. Being a leader in online payments, PayPal was finding it challenging to address all the needs of the millions of customers they served. There were a number of challenges the company was facing that drove it to change its business model. These challenges were as a result of the growing customer numbers, stiff competition, regulatory issues and safety concerns. First, PayPal operates in a highly sensitive and competitive market segment. The threat from other companies offering more or less similar services has been a major concern for the company. Since its inception, PayPal has had to deal with the threat of competitors. For example, two years after its establishment, PayPal faced competition from Citibank, who introduced the c2it service. Citibank partnered with Microsoft and AOL, and the c2it presented a significant threat to the growth of PayPal. In another example, Google introduced the Google’s Checkout system, which allowed customers to retrieve their financial information and give it to merchants whenever it needed. With such a system, PayPal was facing the risk of being thrown out of the online payment market. An even bigger threat came from mobile service providers. For example, companies like Verizon and ATT were facilitating P2P payments, services that allow customers to send and receive money using their mobile phones.