Value chain analysis is a strategic analytical tool that can be used to identify business activities that create the most value. The framework divides business activities into two categories – primary and support. The figure below illustrates the essence of Square value chain analysis. Square Value Chain Analysis Square Primary Activities Square Inbound logistics Inbound logistics refers to receiving and storing raw materials for their consequent usage in producing products and providing services. Along with a wide range of financial services, Square offers related hardware products such as card readers, stands, terminals, registers, hardware kits and accessories. The majority of hardware products are produced in China. Accordingly, cost-effectiveness of producing hardware products is the main source of value creation in inbound logistics for Square. Square Operations Square operations are divided into the following two segments: 1. Seller ecosystem. An expanding ecosystem of products and services that are designed to assist sellers to start, run and grow their businesses. In 2019 this segment processed USD106.2 billion of Gross Payment Volume (GPV), which was generated by nearly 2.3 billion card payments from 407 million payment cards.[1] 2. Cash ecosystem. This segment centred on Cash App integrates financial products and services that help individuals manage their money. As of December 2019, Cash App had approximately 24 million monthly active customers who had at least one transaction in any given month.[2] The main source of value creation in operations primary activity for Square refers to high level of speed and convenience of products and services enabled by technology. The finance sector disruptor spotted demand in both segments and developed products and services to satisfy demand with the use of the latest technology. Square Outbound Logistics Outbound logistics involve warehousing and distribution of products. Square uses the following distribution channels to distribute…Square Value Chain Analysis
Wednesday, September 29, 2021
Research Methodology
Value chain analysis is a strategic analytical tool that can be used to identify business activities that create the most value. The framework divides business activities into two categories – primary and support. The figure below illustrates the essence of Square value chain analysis. Square Value Chain Analysis Square Primary Activities Square Inbound logistics Inbound logistics refers to receiving and storing raw materials for their consequent usage in producing products and providing services. Along with a wide range of financial services, Square offers related hardware products such as card readers, stands, terminals, registers, hardware kits and accessories. The majority of hardware products are produced in China. Accordingly, cost-effectiveness of producing hardware products is the main source of value creation in inbound logistics for Square. Square Operations Square operations are divided into the following two segments: 1. Seller ecosystem. An expanding ecosystem of products and services that are designed to assist sellers to start, run and grow their businesses. In 2019 this segment processed USD106.2 billion of Gross Payment Volume (GPV), which was generated by nearly 2.3 billion card payments from 407 million payment cards.[1] 2. Cash ecosystem. This segment centred on Cash App integrates financial products and services that help individuals manage their money. As of December 2019, Cash App had approximately 24 million monthly active customers who had at least one transaction in any given month.[2] The main source of value creation in operations primary activity for Square refers to high level of speed and convenience of products and services enabled by technology. The finance sector disruptor spotted demand in both segments and developed products and services to satisfy demand with the use of the latest technology. Square Outbound Logistics Outbound logistics involve warehousing and distribution of products. Square uses the following distribution channels to distribute…
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