Square Business Strategy: a brief overview
Square business strategy is based on the following two principles:
1. Simplifying financial transactions. Square Inc. was founded when Jim McKelvey, friend of current CEO Jack Dorsey could not sell his glass faucets and fittings because he could not accept credit card. The two co-founders saw a business opportunity in this problem and developed the first card reader, which allowed small businesses and individuals to accept credit cards.
The finance sector disruptor simplified a range of other financial transactions. For example, instant payment feature on Seller account allows businesses to pay their employees the next business day. Thanks for this capability, employees do not have to wait for the paycheck for several days or even weeks, which has been the case.
Furthermore, Square has also simplified the practice of investing in stocks and bitcoin commission-free for people with no prior investing experience. Customers simply open up the Cash app, decide how much they want to invest in a single stock and click purchase. Challenging the status quo in finance and simplifying financial transactions is the core business strategy for Square.
2. Developing and expanding an ecosystem of financial products and services. In its course to simplify financial products and services as discussed above, Square business strategy relies on the development and strengthening of ecosystem. Currently, the payments company is developing two ecosystems simultaneously – seller and cash.
Square seller ecosystem is a cohesive commerce ecosystem that helps its sellers start, run, and grow their businesses. Cash ecosystem, on the other hand, consists of a line of products and services that help individuals to manage their money.
Although the link between the two ecosystems is rather weak at this stage, the company will attempt to increase the linkage through developing financial products and services that will intersect both.
Square Inc. Report contains the above analysis of Square business strategy. 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, Ansoff Matrix and McKinsey 7S Model on Square. Moreover, the report contains analyses of Square leadership, organizational structure and organizational culture. The report also comprises discussions of Square marketing strategy, ecosystem and addresses issues of corporate social responsibility.
