Value Chain Analysis of PayPal

PayPal is an American payment transfer service providing American multinational companies. The financial technology brand started its business in 1998. Today, we’ll discuss the value chain analysis of PayPal supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Supplies for the Online Transaction & Payment Transfer of PayPal

• Internet 
• Technology 
• Infrastructure 
• Tech devices 
• Encryption 
• Programming 
• Data storage facility 
• Security firewall 
• server
• Software specialists 
• Programmers 

The Value chain analysis of PayPal supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of PayPal value chain analysis company example as follows;

Value Chain Analysis of PayPal

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of PayPal supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of PayPal

The primary activities are directly involved in the production of products and goods and adding value to the online payment transfer company. Some of the five main primary activities in the value chain analysis of PayPal supply chain analysis are as follows;

Inbound Logistics of PayPal

I-Suppliers Network

Tech infrastructure, digital devices, internet services, servers, programming, encryption, data storage facilities, firewalls, software development, and algorithms are some of the basic supplies for performing online transactions. PayPal procures these supplies from various tech companies, software developers, consumer electronics manufacturing firms, and tech professionals. However, the large and diverse supplier network helps the tech financial company to ensure the smooth availability of various supplies to perform various financial operations without any disruptions. 

II-Suppliers Selection 

PayPal deals with highly private and sensitive financial data of millions of users and customers. In order to ensure the data privacy and protection of the company and the users; PayPal carefully selects its suppliers, tech professionals, and digital service providers to avoid any types of mishaps. 

Outbound Logistics of PayPal

I-Partnerships with Other Financial Firms 

PayPal partners up and builds an alliance with various other financial service-providing firms and banks all over the world. It allows the tech financial brand to smoothly perform online transactions, and digitally send and receive payment to other banks and financial service-providing firms. 

Operations of PayPal

I-Intermediary Role 

PayPal plays the role of intermediary between the bank and the individual customers. While making any online payment; the user and the bank decide which account to debit and credit to the system of the PayPal. If the command is correct and meets are regulatory requirements and standards; then it would precede the payment. 

However, all the received payments sit and remain in the account of PayPal. Customers could use their payment in the PayPal account for various purposes; some of which are as follows; 

• E-commerce payment 
• Further bank transfer
• Withdrawal from the PayPal card
• Transfer to any other account 
• Cash-out

It is significant to mention here that PayPal charges a particular amount of fee from the customers per transaction. In order to retain customers and users on its platforms; PayPal offers a wide range of competitive services to make its platform attractive to the users. 

• PayPal Loans 
• Working capital 
• Invoicing 
• PayPal shipping 

Marketing & Sales of PayPal

PayPal runs various types of marketing and advertisement campaigns for the promotion of its online financial services and brand. The company employs various channels to approach end consumers like display ads, social media marketing, billboards, outdoor ads, and TV. However, the financial service-providing firm also runs various types of promotional offers to attract the attention of customers. They’re as follows; 

• Cash backs 
• Free tracking 
• Free analytical service

Services of PayPal

PayPal offers a wide range of online financial services to customers and users to facilitate online and digital transactions and money transfers. It allows the company to improve the overall customer shopping experience and brand loyalty. However, some of the main services of the company are as follows; 

• Online money transfer
• Shop-in-store online
• Flexible payment method 
• Discounts 
• Debit and credit card

Supporting Activities of PayPal

Supporting activities are indirectly involved in the production of products and goods and adding value to the online transaction company. Some of the main supporting activities in the value chain analysis of PayPal supply chain analysis are as follows;

Infrastructure of PayPal

PayPal has established a very large infrastructure of subsidiaries, tech infrastructure, database of customers, alliance with various financial institutions and banks, and tech expertise. Well-developed and organized tech infrastructure helps the company to smoothly perform its various financial and online payment transfer operations without any disruption. 

HRM of PayPal

PayPal has employed approximately 28000 employees to manage its global operations. The human resource management department of the company plays a key role in building an innovative working environment; recruiting and selecting tech professionals, and providing equal opportunities to all regardless of any differences. 

Technological Development of PayPal

PayPal invests a significant amount of capital resources in research and technological development. It allows the company to improve and simplify the online payment transfer, better user experience, secure and safe digital transactions, and add new features and functions. However, all of these features help the tech financial company to improve overall the digital payment process. 

Procurement of PayPal

PayPal is highly careful and cautious about the procurement of tech and digital services, tools, and equipment. The company thoroughly performs the background checks on suppliers to ensure their authenticity and compliance with the law. 

Conclusion: PayPal Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of PayPal; we have realized that PayPal is the world’s leading online financial transaction service providing platform. If you are learning about the PayPal value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.