Zip: In Need of Growth-Oriented Competitive Strategies
(6 pages of text)
Case (Pub Mat)
Zip Co Limited (Zip) was a market follower in the Australian buy now, pay later (BNPL) sector. In September 2020, PayPal Holdings Inc. entered the growing sector, which was expected to disrupt the credit card industry, with better incentives for retailers and consumers. Although investors were concerned, Zip’s chief executive officer remained confident about the company’s future growth. How could he combat competition against large players like PayPal in the United States? What competitive strategies could he opt for—and could Zip disrupt the credit card industry?
This case is intended for undergraduate- and graduate-level courses in strategic management, creativity and innovation, or business strategy. It elaborates on the innovation challenges faced by firms during increasing competition in a new product category. The case further highlights strategies that firms take to compete against large competitors and disrupt related product categories. After working through the case and assignment questions, students will be able to do the following:
- Critically analyze strategies that firms can take to compete against direct and indirect competitors.
- Identify and describe drivers of growth of the buy now, pay later category.
- Explain growth strategies that can be used to improve profitability.
- Critically analyze the disruptive potential of a new product category.
Finance and Insurance
Australia; United States, Medium, 2020
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