Charles Schwab Case
Charles Schwab Case
Problem
The major issue involving Charles Schwab Corporation was a decline in profitability and market share in 2003-2004. This was due to other stock brokerage companies such as TD Waterhouse, Ameritrade and E*Trade had lower equity trading prices then Schwab. This was a problem because Schwab was known for there good value and they were not providing good value. Their relative prices had increased instead of decreased and Schwab’s brand image started to decline. By 2004, the company was looking more like a full service broker then a leading edge discount broker. This no longer gave Schwab differentiation for their competitors and lost trust that some investors once had in the company.
Analysis of the Situation
Charles Schwab Corporation was once known as the first discount self-service brokerage firm. This differentiated them from other stock brokerage companies. When other companies started offering lower equity trading prices, Charles Schwab Corporation no longer had differentiation in the marketplace and had lost there positioning as the low cost industry provider. From this issue, Charles Schwab Corporation had offended and let down their customers. Their customers looked at Schwab as the leading discount broker but that image was lost and investors no longer have trust in Schwab.
Schwab’s marketing techniques that were used before this problem began were lacking organization and were not being used to full potential. Schwab’s marketing priority was direct marketing campaigns that sold specific products. These were collecting large amounts of data, but the data was not being used strategically. These campaigns did not allow Schwab to reach out to his customers on a personal level. The campaigns should have been marketing how Schwab differentiates themselves from competitors and how investors can have trust in the company.
This changed when Chuck introduced a new cost-cutting program. With this also came a new marketing campaign
Problem
The major issue involving Charles Schwab Corporation was a decline in profitability and market share in 2003-2004. This was due to other stock brokerage companies such as TD Waterhouse, Ameritrade and E*Trade had lower equity trading prices then Schwab. This was a problem because Schwab was known for there good value and they were not providing good value. Their relative prices had increased instead of decreased and Schwab’s brand image started to decline. By 2004, the company was looking more like a full service broker then a leading edge discount broker. This no longer gave Schwab differentiation for their competitors and lost trust that some investors once had in the company.
Analysis of the Situation
Charles Schwab Corporation was once known as the first discount self-service brokerage firm. This differentiated them from other stock brokerage companies. When other companies started offering lower equity trading prices, Charles Schwab Corporation no longer had differentiation in the marketplace and had lost there positioning as the low cost industry provider. From this issue, Charles Schwab Corporation had offended and let down their customers. Their customers looked at Schwab as the leading discount broker but that image was lost and investors no longer have trust in Schwab.
Schwab’s marketing techniques that were used before this problem began were lacking organization and were not being used to full potential. Schwab’s marketing priority was direct marketing campaigns that sold specific products. These were collecting large amounts of data, but the data was not being used strategically. These campaigns did not allow Schwab to reach out to his customers on a personal level. The campaigns should have been marketing how Schwab differentiates themselves from competitors and how investors can have trust in the company.
This changed when Chuck introduced a new cost-cutting program. With this also came a new marketing campaign