Square Ansoff Matrix
Square Ansoff Matrix is a marketing planning model that helps the B2B fintech to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses. These are market penetration, product development, market development and diversification.
Square Ansoff Matrix
Within the scope of Ansoff Matrix, Square uses all four growth strategies in an integrated manner:
1. Market penetration. Market penetration refers to selling existing products to existing markets. Square uses market penetration strategy extensively. Specifically, the payments company relies on viral marketing based on storytelling along with other marketing strategies to sell its financial products and services to small and medium businesses in North America, Canada, Japan, Australia, Republic of Ireland and the United Kingdom. Furthermore, the financial services and digital payments company offers individuals on the same locations listed above the services of storing, sending, receiving, spending and investing their money.
2. Product development. This involves developing new products to sell to existing markets. New product development is the main growth strategy for Square. Having entered the market only with a card reader, nowadays Square offers more than 30 distincg products and services for businesses and increasing numbers of products and services to individuals. .
Each new product developed by Square further strengthens its expanding ecosystem of financial products and services. The financial services and mobile payments company is expected to further engage in product development strategy in an accelerated rate.
3. Market development. Market development strategy is associated with finding new markets for existing products. Square is cautious and overly selective in expanding in new markets. Moreover, there are entry barriers for the financial unicorn such as the level of financial infrastructure, regulatory barriers and the level of technological savvy for consumers.
4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Square engages in diversification business strategy occasionally. Recently, the company has diversified into ‘buy now, pay later’ trend acquiring Afterpay for USD 29,00 billion in all-stock deal. Moreover, the most notable diversification instance for the B2B fintech relates to the acquisition of TIDAL, a global music streaming service for USD 350 million in 2021.
Square Inc. Report contains the above analysis of Square Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Square. Moreover, the report contains analyses of Square leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Square marketing strategy, ecosystem and addresses issues of corporate social responsibility.
 Lee, D., Moise, I., Smyth, J. & Bradshaw, T. (2021) “Square’s USD29bn bet on Afterpay heralds future for ‘buy now, pay later’ trend” Financial Times, Available at: https://www.ft.com/content/ae39054c-4079-4951-88fd-0b8b54653a9a
 Hale, K. (2021) “What Square’s USD302 Million TIDAL Acquisition Means For Its Music Industry Ambitions” Forbes, Available at: https://www.forbes.com/sites/korihale/2021/05/04/what-squares-350-million-tidal-acquisition-means-for-its-music-industry-ambitions/?sh=e4e7803172a7