Stripe SWOT & PESTLE Analysis

Stripe SWOT & PESTLE Analysis

Final assignment for Sophia Learning's Principles of Management.
Course: https://app.sophia.org/spcc/principles-of-management

01. Executive Summary
02. Organizational Background (1/2)
03. Organizational Background (2/2)
04. Internal Strength
05. Internal Weakness
06. External Opportunities
07. External Threats
08. Macro Environment (PESTLE)
09. Micro Environment (Porter’s 5 Forces)
10. Generic Strategy Recommendations
11. Organization Design Recommendations
12. Ethical Considerations
13. References

#Stripe #Fintech #API #Economics

Transcript

1. Touchstone SWOT Analysis Presentation SWOT Analysis of Stripe Miyoko Shimura Principles of Management University of the People (US), Computer Science February 17, 2024 Touchstone 4: SWOT Analysis - Miyoko Shimura
2. Overview Environment Analysis Internal Analysis External Analysis Conclusion Summary 01 02 03 04 05 Touchstone 4: SWOT Analysis - Miyoko Shimura
3. 01 Executive Summary • Develop talent development programs to upskill existing employees and attract top talent globally as fintech is a highly competitive job market • Invest aggressively for acquisitions of AI and cybersecurity startups focused on fraud prevention, underwriting, data analytics to enhance its competitiveness • Incorporate merchants to enable the acceptance of major cryptocurrencies such as Bitcoin and Ethereum for transactions, facilitate fiat currency payouts by partnering with fintech companies to reach more customers Touchstone 4: SWOT Analysis - Miyoko Shimura
4. 02 Organizational Background • History of Stripe: Founded in 2010 by brothers John and Patrick Collison. Headquarters in San Francisco. Initially focused on allowing web developers to easily accept payments on their sites. Raised over $2 billion in funding from investors like Sequoia Capital, General Catalyst, and Andreessen Horowitz. Expanded globally to over 25 countries and supports 135+ currencies. Touchstone 4: SWOT Analysis - Miyoko Shimura Source: Stripe Picture: Wikipedia, Stripe
5. 03 Organizational Background • Major Products and Services: - Payment processing APIs to accept and make payments online and in mobile apps, supporting cards, wallets, bank transfers - Billing and subscription management tools - In-person payments via Stripe Terminal - Issuing virtual and physical corporate cards • Markets Being Served: - Millions of internet businesses and platforms like Shopify, Salesforce, Lyft, Doordash - Small, medium and large enterprises across all industries - Individual developers and content creators Touchstone 4: SWOT Analysis - Miyoko Shimura Source: Stripe Picture: Stripe
6. 04 Internal Strength • Simple and well-designed APIs. Stripe's APIs to integrate payments are straightforward and easy to use. This speeds up development time • Stripe accepts over 135+ currencies and is expanding to more countries, increasing addressable market • Strong brand reputation as a leader in online payment processing. Its partnerships with major platforms like Shopify, Salesforce and Lyft is key driver for further development Touchstone 4: SWOT Analysis - Miyoko Shimura Source: Stripe
7. 05 Internal Weakness • Stripe handles sensitive customer payment information so security issues like vulnerability and hacking remain an ongoing concern • The charges of Stripe per online payment processing are ca.2.9% and 30% higher than Square and PayPal respectively • Dependence on third-party platforms. Much of Stripe's success is tied to partnerships with platforms like Shopify, Lyft, Twitter, etc. If those relationships were disrupted, it could impact Stripe's business Touchstone 4: SWOT Analysis - Miyoko Shimura Source: Marketing Tour
8. 06 • International expansion is a major growth opportunity as Stripe extends its services into more countries and currencies • The growth of cryptocurrencies and central bank digital currencies (CBDCs) presents new opportunities for payment processing • Mobile commerce and peer-to-peer transactions continue growing rapidly, boosting Stripe's API-based strengths in digital payment acceptance External Opportunities Touchstone 4: SWOT Analysis - Miyoko Shimura Source: Chaudhuri, R. et al. McKinsey & Company
9. 07 External Threats • Intense competition from many rivals in the payment processing space, including PayPal, Square • Economic downturns and reduced consumer spending can negatively impact Stripe's transaction volumes. • Trade wars, political conflicts or disasters could disrupt Stripe's ability to operate in certain foreign markets, hampering its international growth Touchstone 4: SWOT Analysis - Miyoko Shimura
10. 08 Touchstone 4: SWOT Analysis - Miyoko Shimura Macro Environment (PESTLE) Political Economic Social Technological Legal Environmental Government regulations around payments and data privacy, such as PSD2, GDPR, CCPA Currency fluctuations and hyperinflation in foreign markets Fraud concerns can deter consumer trust in online payments Innovations like blockchain present new opportunities increasing legal overhead due to the complexity of adapting to different rules across regions. Environmental regulations related to carbon emissions may increase business costs Source: Carr, B. The Payments Association.
11. 09 Touchstone 4: SWOT Analysis - Miyoko Shimura Micro Environment (Porter’s 5 Forces) Supplyer Power Buyer Power Threat of Substition Threat of New Entrants Competitive Rivery Payment processing is a highly competitive industry Merchants can easily switch between payment processors Stripe depends on payment networks like Visa and Mastercard to operate Stripe depends on payment networks like Visa and Mastercard to operate Stripe's brand recognition and scale also make it hard for new entrants to rival
12. 10 • Stripe’s success is closely tied to its ability to innovate in the payments space. Continue innovation by integrating multi currencies and wallets • Maintain a strong emphasis on security and compliance. Proactively address emerging threats, comply with industry standards, and communicate commitment to data protection and privacy • Attract top talents in the fields of technology, finance, and customer service. Building a team with diverse skills to adapt to changing market conditions Touchstone 4: SWOT Analysis - Miyoko Shimura Generic Strategy Recommendations
13. 11 • Prioritize talent development programs to upskill existing employees and attract top talent globally • Allocate resources for dedicated innovation and research & development teams for blockchain technology and cyber security • Dedicated risk management teams and processes in place to identify, assess, and mitigate potential risks of applications Touchstone 4: SWOT Analysis - Miyoko Shimura Organization Design Recommendations
14. 12 • Following tax rules worldwide and paying a fair amount of taxes to build trust with governments and the public • Promoting equal access to Stripe's services, especially for minority-owned businesses by providing resources for underserved entrepreneurs • Avoiding use of data for purposes beyond payment processing without consent to secure customer payment information Touchstone 4: SWOT Analysis - Miyoko Shimura Ethical Considerations
15. 13 • Armstrong, S. (2018). The untold story of Stripe, the secretive $20bn startup driving Apple, Amazon and Facebook. • Carr, B. (2023, December 7). Payments regulation in 2024: A year of evolution. The Payments Association. • Chaudhuri, R. et al. (2022). McKinsey & Company. Retrieved February 17, 2024 • Marketing Tutor. (2020, December 14). SWOT analysis of Stripe. Retrieved from Marketing Tutor • Stripe. (n.d.). Stripe Terminal: Unified commerce platform. Retrieved February 17, 2024, from Stripe website. • Stripe. (n.d.). Supported currencies. Retrieved February 17, 2024, from Stripe website. • Wikipedia. (2024, February 16). John Collison. In Wikipedia, The Free Encyclopedia. Retrieved February 17, 2024, from Wikipedia. • Wikipedia. (2024, February 16). Patrick Collison. In Wikipedia, The Free Encyclopedia. Retrieved February 17, 2024, from Wikipedia. • Wikipedia. (2024, February 16). Stripe (company). In Wikipedia, The Free Encyclopedia. Retrieved February 17, 2024, from Wikipedia. Touchstone 4: SWOT Analysis - Miyoko Shimura References
16. Thank You Miyoko Shimura