Case Notes/Answers
PAYPAL IN 2015 RESHAPING THE FINANCIAL SERVICES
LANDSCAPE by Robert Burgelman Robert Siegel Henry
Lippincott
Discussion Questions:
1. Is PayPal better off independent from eBay? Why or why not?
2. If you were Dan Schulman, what do you see as the greatest risk to your business in the
next five years? Come up with a plan to address the greatest risk you see him and the
company confronting.
3. Should PayPal rebrand Braintree and Paydiant products with the PayPal brand? If so,
why?
4. How should PayPal respond to Apple’s launch of Apple Pay?
5. Who is PayPal’s most formidable competitor? What should Schulman and team do to
compete against this company?
6. What are the four greatest strengths and weaknesses of PayPal’s new vision? Is there
anything PayPal should do differently than what they are currently doing? If so, what?
, CASE: E-572TN
DATE: 11/20/15
TEACHING NOTE FOR
PAYPAL IN 2015: RESHAPING THE FINANCIAL SERVICES
LANDSCAPE
The case follows PayPal, a digital payments platform that found early success processing online
payments for purchases on eBay, which acquired the company in 2002. The case begins by
describing the decision by eBay in 2014 to spin off PayPal and the strategic challenges facing its
new CEO, Dan Schulman, who encountered significant strategic issues leading PayPal as an
independent company. When the separation from eBay finalized in July 2015, PayPal was in the
midst of a multi-year technology reconstruction. Additionally, the digital payments landscape
had changed dramatically, extending beyond eCommerce into mobile payments, global
remittances, peer-to-peer transfers, and offline transactions. The case presents several trials
facing Schulman, including how to innovate quickly in a large organization, whether and how to
recreate PayPal’s vision, and how to both partner and compete successfully with new entrants in
the market.
Position in Course
This case is intended for use in a course for students who at some time may want to undertake an
entrepreneurial career by pursuing opportunities to innovate within either large or small
organizations. The course deals with case situations focused on innovation within companies at
different stages of growth and development.
The teaching objective of the case is to explore the following topics:
• Innovation within a large organization
• Innovation through acquisition
• Implementing a new vision within a large organization
• “Coopetition” among industry players
Assignment Questions
1. Is PayPal better off independent from eBay? Why or why not?
PAYPAL IN 2015 RESHAPING THE FINANCIAL SERVICES
LANDSCAPE by Robert Burgelman Robert Siegel Henry
Lippincott
Discussion Questions:
1. Is PayPal better off independent from eBay? Why or why not?
2. If you were Dan Schulman, what do you see as the greatest risk to your business in the
next five years? Come up with a plan to address the greatest risk you see him and the
company confronting.
3. Should PayPal rebrand Braintree and Paydiant products with the PayPal brand? If so,
why?
4. How should PayPal respond to Apple’s launch of Apple Pay?
5. Who is PayPal’s most formidable competitor? What should Schulman and team do to
compete against this company?
6. What are the four greatest strengths and weaknesses of PayPal’s new vision? Is there
anything PayPal should do differently than what they are currently doing? If so, what?
, CASE: E-572TN
DATE: 11/20/15
TEACHING NOTE FOR
PAYPAL IN 2015: RESHAPING THE FINANCIAL SERVICES
LANDSCAPE
The case follows PayPal, a digital payments platform that found early success processing online
payments for purchases on eBay, which acquired the company in 2002. The case begins by
describing the decision by eBay in 2014 to spin off PayPal and the strategic challenges facing its
new CEO, Dan Schulman, who encountered significant strategic issues leading PayPal as an
independent company. When the separation from eBay finalized in July 2015, PayPal was in the
midst of a multi-year technology reconstruction. Additionally, the digital payments landscape
had changed dramatically, extending beyond eCommerce into mobile payments, global
remittances, peer-to-peer transfers, and offline transactions. The case presents several trials
facing Schulman, including how to innovate quickly in a large organization, whether and how to
recreate PayPal’s vision, and how to both partner and compete successfully with new entrants in
the market.
Position in Course
This case is intended for use in a course for students who at some time may want to undertake an
entrepreneurial career by pursuing opportunities to innovate within either large or small
organizations. The course deals with case situations focused on innovation within companies at
different stages of growth and development.
The teaching objective of the case is to explore the following topics:
• Innovation within a large organization
• Innovation through acquisition
• Implementing a new vision within a large organization
• “Coopetition” among industry players
Assignment Questions
1. Is PayPal better off independent from eBay? Why or why not?
