Zip: In Need of Growth-Oriented Competitive Strategies
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? Arpita Agnihotri is affiliated with Pennsylvania State University - Harrisburg. Saurabh Bhattacharya is affiliated with Newcastle University.