Deniz's Input or PayPal case

Question 1) What explains PayPal’s early success?PayPal which was founded in 1998 allowed its costumers to use their own e mail address, credit card or bank account to send or receive online payments. PayPal expanded its service among US and as well as this , in almost 14 countries , PayPal also highly used among the EBay users too. SO PayPal became an important part of eBay s growth and revenue. For the international growth which offered local services and seven currencies. Besides the costumers they also increased their partnership networks which enriched their both quality and potential revenue. PayPal accounts were also easy to set up “five minutes “ (as mentioned in the case pg 2)which sounds user friendly. After all, they also formed auction market place. This was also attractive for the small businesses or even individuals who can not use credit cards . Moreover than this PayPal offered for the auction sellers a better service for receiving the payments. (a quicker and convenient service by which the sellers do not have to wait before they ship the goods)SO basically the reason for Pay Pal costumer-centered business model, which was developed to focus on any consumer problem or need to make their life easier .
Question 2) Does Google represent a serious threat to PayPal? What strategy for payments would you recommend for Google? For eBay/PayPal in defending against Google’s attack?
It seems Google is not just a threat to web sites like PayPal or e Bay , the aggressive enlargement of Google is going to be a threat for every single business model on internet. Google has strengths for so many reasons: like the brand, service quality, the potential of users, search engine advantage and of course the technical experience and excellence.
What Google doing now is a result of their aggressive enlargement, some how all the web sites in the cyber world is related to Google. SO Google is using this advantage now. Google s way is offering more convenient way for the users that they do not have web sites are also enjoying the Google advantage . Google can offer all these service for free of charge and by the time they can be charged through advertisements. Or maybe they can charge the costumers as soon as they can sell their products through Google. This will be the efficient way for both Google and the online sellers. Because it is clear tat besides earning money and increasing revenue the main competition is for the number of costumers which is an important factor to generate revenue from advertisements.
For PayPal and eBay it is really a big threat which may decrease their revenue by avoiding the web users to buy the products through Google Base while they are searching, which is minimizing the role of Pay Pal or EBay. For both of these web sites, they should be more innovative and maybe they can company with Yahoo or MSN even maybe change the way they are working . Another way is to increase their consumer range . (both sellers and buyers)They can do this by decreasing the per cost for transaction or maybe if this increases the traffic on the web site they can use this data base for some different aims. (like advertising)