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Business Proposal - Essay Example

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Summary
The new service is in an industry that has other online payment platforms such as western union, MoneyGram, and other conventional payment…
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Business Proposal
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"Business Proposal"

Download file to see previous pages Operating as an acquirer, PayPal processes payment for commercial users at a fee before transferring the money to the other party whom it further charges yet another fee. The receiver of the money gets it in a preferred currency including respective local currencies after converting at the prevailing market rates as determined by the foreign exchange rates.
This report introduces the service into the market. In doing this, the report analyses the potential market and the probability for profitability. The product introduction is the basic marketing procedures that involve market determination. This requires effective consideration of the opportunities and threats presented by the market and the strengths and weaknesses of the product that the marketer must consider before positioning the product.
The market that the service target is an oligopoly implying that it has various firms offering similar services; the new product will therefore face intense competition from the existing companies. However, the various companies have a marginal control of the market thereby creating room enough for the growth of the new player. With effective marketing, the new service will possibly claim a share of the market and even become a monopoly. This will rely on the marketing features employed by the marketers both at introduction and in subsequent marketing operations.
E-commerce is real time and it required a competitive payment system that would match the transactions carried out. In essence, the payment systems needed to be instant. This is a feature, which was yet to be realized. PayPal thus positions itself as the only intermediary capable of processing and availing the money to the appropriate parties within the time that transactions are made. The demand for online payment solutions has increased with the advent of electronic commerce. Most companies currently have websites and support electronic transfer of goods and ...Download file to see next pagesRead More
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