Essay

MARKETING EXPANSION OF ZIP CO LIMITED
Table of Contents
Introduction    3
Zip Pay Overview and Competitive Advantage    3
US Market Analysis for Zip Pay    4
Individual Assessment on Zip Pay expansion in US Market    5
Conclusion    5
References    7
Introduction
There has been an increase in the retail sales with the increase in the demand and the purchasing power of the consumers. However, there are moments when companies have so much to offer to the consumers, they ran out of money at that moment to purchase those. Therefore, in order to enable the continuation of purchase by consumers, many companies try to offer digital credit options to consumers, where they will get an opportunity purchase now and pay it later. Zip Co Ltd is such kind of company offering credit services to customers, which has started its operation in Australia. The company is looking forward for their expansion in different territories after successful operation in Australia. They have targeted to open their operation in US regarding which a detailed discussion is done regarding their competitive advantage, the analysis of US market to successfully operate in the US territory.
Zip Pay Overview and Competitive Advantage
Zip Pay started its operation from Sydney in the year 2013, which offered digital credit service to the customers, which caters the everyday purchase, and also it includes the retail sales and purchases related to healthcare services (Zip, 2021). Zip was also listed on the Australian Securities Exchange, and remained as Zip pay, and considered as one of the most popular financial service in Australia. With the success of their operation in Australia, they are planning to expand their operation. However, as discussed by Kohut (2020) any company planning to expand their operation in different territories must analyse their financial status, the competition they will face in the foreign market, the governmental regulation in that country and the analysis of the competitive advantage of the company over others.
One of the major advantages of Zip pay is that it is recognized by the Australian government and it also receives a lot of debt facility along with funding from the National Australia Bank (Caddy et al., 2020). Zip pay offers flexible payment schedule or option, and also more pay back money borrowed for each of the purchases made. This provides an ease for the consumers with respect to the purchases they make. Customers are provided with a number of options to pay starting from weekly, fortnightly or the monthly repayment schedules, however, there must be a minimum pay of $40 per month. Company also offers an interest free balance, however after 60 days, a fee of $6 is applicable. One of the major advantages that Zip pay has is that the association with a lot of merchants, which makes it easier for the consumers to make a purchase anywhere based on their convenience. This wide range of coverage increases the brand presence, and also the reachability to fulfil the costumers needs. Zip pay also helps the customers in providing better payment plan, and financial services before paying their bills, which none of the competitors do so (Grimmer, 2019). Therefore, these are the notable competitive advantage that Zip pay is having...