Square Electronic Payment Service Analysis - Essay Example

Square is an electronic payment service that is offered by the Square incorporation in the US. It allows its usersto accept credit cards using their mobile phones. This is applicable through swiping or manual entry of the details on the phone device. The card reader provision company needs to adopt the e business platform to stay relevant in the highly competitive environment Laudon, Kenneth and Carol). Competitors like the Apple are reported to be considering the adoption of the NFC technology which has the impact of making them highly competitive in provision of e business services. When Apple becomes the first to adopt this platform, it means Square will lose a lot of clients most so the technology oriented who are the majority in the current market place where convenience is the key determinant (Glover, Stephen and Douglas). The second need for Square Inc to adopt an e business platform is to enable it to extend into the non-US markets and this has to happen at the fastest rates. If this does not happen then the competitors like pay pal would snap the idea and use it to the disadvantage of Square. Square has therefore to be able to adopt the e business platform to catch up with the competition by being able to provide its customers with a variety of products, at affordable costs and with the convenience desired by most of the firms (Glover, Stephen and Douglas). Square will be able to integrate such operations through EMV in some countries and NFC in other countries. This would ensure that their operations are widened for diverse solutions in the vast financial markets. Businesses face a lot of problems most so those that are involved on the online payment systems such problems range from the problems of uncertainty, the ever expanding global market, and the need for innovation. The largest problem is that which emanates from regulatory requirements. Uncertainty affects many business managers in the manner in which it would affects the operations of such businesses in the credit markets, global economy and how regulations would affect the operations of such businesses. Globalization affects the operations of Square due to the unpredictability of how different cultures would perceive their new products hence their penetration of the new markets (Glover, Stephen and Douglas). Before designing new products on the e business platform, such considerations costs the companies a lot of time in the manner they would conduct the same to get more customers while maintaining the ones they already have. This is because innovation and inventions are paramount most so in the volatile technology market. Square Inc faces a turbulent environment due to the existence of the competitors; this does not make the product design environment sleep because this would cost them from their competitors (Laudon, Kenneth and Carol). The business therefore tries to get the problem of innovation solved while still ensuring the control of the organization is in place. Without ensured control the hands of the law through enacted stiff regulations may also impact on the organization negatively. Regulations on energy, environment and financial policies are the most sensitive and require careful handling. As Square designs their new e business products they must ensure they operate under the regulations to avoid charges which are costly to businesses (Laudon, Kenneth and Carol). According to Harvard business review on business and the environment, the idea of business through the internet has changed how the customers interact with their providers and this has lead to the growth of e business. For companies like Square, e business is important because of several reasons. One is that e business leads to increase in the speed over which transactions are done. For example the time over which clients would do ordering is reduced since it can be done much quickly over such platforms since the internet covers a wide area network. For Square inc, e business would therefore mean better procurement and the supply chain a situation which will make the sales team for its products be effective and efficient while even being in the position of outsourcing some services. Due to e business, the business will be in the position of having a remote access to systems enabling the management teams from various locations to share a platform enhancing the content and the quality of the decisions they make. E business platform will enable the smooth running of businesses by making transactions much cheaper, quicker and easier. This is because such actions will be done on computers as opposed to face to face or over the phone situations which demand for the availability of the individuals concerned for transactions to be executed. E business also offers the chance for a reduction in the cost of doing business since movement is limited as most of the business is conducted online. Business over the internet also offers a business variety of both suppliers and the clients enabling one are in the position of comparing before landing on the better option (Glover, Stephen and Douglas). The square as presented by Square inc is a simple and tiny device a situation which presents its adoption of both the EMV and the ETC which makes it make the payment service be a worldwide product. This device works well with the iphone, ipad touch. Motorola droid. The device operates as a swipe device a situation which propagated reporting is disfunctionality of the device. The model to be adopted by Square Inc just like any other model will comprise of how the system will provide the product they offer. The next part of the component will be the manner in which the system will result into revenue generation. The next component is the most important because it will enhance the survival of the system (Harvard business review on business and the environment). This is the part which shows how the system or platform will create and adapt to new markets and technologies. The components are thus as follows following the description presented; e business concept, the value proposition, the source of revenue and the required activities, resources as well as the capabilities. This e business platform is all inclusive e as it describes the reasons of the business, its goals and vision including the products which it offers. And it shows that the customers are ready for the device in enhancing product provision (Laudon, Kenneth and Carol). Works Cited Glover, Steven M., Stephen W. Liddle, and Douglas F. Prawitt. e business: principles & strategies for accountants. Upper Saddle River, N.J.: Prentice Hall, 2001. Print. Harvard business review on business and the environment. Boston, MA: Harvard Business School Press, 2000. Print. Laudon, Kenneth C., and Carol Guercio Traver. E-commerce: business, technology, society. Boston: Addison Wesley, 2002. Print. Read More