Paypal Case Questions

Please answer the following questions, not exceeding the maximum space noted. Also, please identify each answer keyed by number to the question.

Paypal Case Questions

Please answer the following questions, in the suggested space noted. Also, please identify each answer keyed by number to the question.

1. Describe Paypal, its strengths and weaknesses (not considering the competition). Make sure you answer the following questions (1-2 paragraphs total)
   a. What is PayPal's main product or service?
   b. Why is it desirable?
   c. What are the main barriers preventing every man, woman, and child from opening a Paypal account?
   
2. From the information provided in the case, what are the sources of PayPal's competitive advantage? Is it sustainable? (1-2 paragraphs)
   
3. The case provides a comparison of Paypal with a few competitors. Visit Paypal's site and that of one competitor (see a list at http://www.paypalsucks.com/options.shtml and provide a more complete set of pros and cons (select one from either the "accounts similar to Paypal" or "merchant accounts"). Anchor your facts to actual page addresses (URLs). Billpoint is disappearing soon, so the site is down. For B-to-C accounts, you can choose Moneybookers or e-Gold. (1-2 paragraphs)
   
4. Do some research using an on line news service (hint: NOT a newsgroup, as some have inquired. See a service like news.com or Google's news search). Please set aside their quest for an IPO and focus on their product/service strategies. What are the most important stories and what are the implications for Paypal? (1-2 paragraphs)
   
5. What should Paypal do next? (1 paragraph)