Charles Schwab Case Analysis
Memorandum
Date: 21 May 2013
Subject: Analysis mode and concept of Charles Schwab & Company, Inc.
This is a typical story that is written for a specific pedagogical objective, about a real organization, a management situation, a decision situation and contentious issues.
The main decision that needs to be made is that the manager identifies areas of opportunity within the industry and grasped the absolute cost advantage. We have learned through the article that Charles Schwab took advantage of the U.S. Securities and Exchange Commission to lift restrictions on fixed commissions, so as to seize the opportunity to change his own corporate design, from the traditional agent into a discount broker. He took a kind of new mode of operation: a savvy investor can trade pay for themselves, rather than having to pay package, including consulting and trading fees. As a large number of discount stockbroking firms into the market, in addition to a lower price, companies don't have their own characteristics.
If I was taking Charles Schwab’s position, my recommendation is the constant innovation to meet customer demand as the purpose or reason for the organization’s existence. Schwab has established a different pattern that can increase the value of the discount service. Compared with other discount brokerage firms, he charges not only lower than providing full-services of brokerage firms, but also creating more value for customers. For those who are trying to lower costs in market savvy investors, Schwab satisfied their needs. Schwab has created a unique enterprise design in the industry with the most advanced technology, the trading operations of Charles Schwab company is much more convenient than its competitors.
Why does organization need continuous innovation to satisfy customer demand? Why did Schwab have such a strong position in this profession? We all is not hard to find in all walks of life, a kind of innovation opportunities, some enterprises innovate their
Date: 21 May 2013
Subject: Analysis mode and concept of Charles Schwab & Company, Inc.
This is a typical story that is written for a specific pedagogical objective, about a real organization, a management situation, a decision situation and contentious issues.
The main decision that needs to be made is that the manager identifies areas of opportunity within the industry and grasped the absolute cost advantage. We have learned through the article that Charles Schwab took advantage of the U.S. Securities and Exchange Commission to lift restrictions on fixed commissions, so as to seize the opportunity to change his own corporate design, from the traditional agent into a discount broker. He took a kind of new mode of operation: a savvy investor can trade pay for themselves, rather than having to pay package, including consulting and trading fees. As a large number of discount stockbroking firms into the market, in addition to a lower price, companies don't have their own characteristics.
If I was taking Charles Schwab’s position, my recommendation is the constant innovation to meet customer demand as the purpose or reason for the organization’s existence. Schwab has established a different pattern that can increase the value of the discount service. Compared with other discount brokerage firms, he charges not only lower than providing full-services of brokerage firms, but also creating more value for customers. For those who are trying to lower costs in market savvy investors, Schwab satisfied their needs. Schwab has created a unique enterprise design in the industry with the most advanced technology, the trading operations of Charles Schwab company is much more convenient than its competitors.
Why does organization need continuous innovation to satisfy customer demand? Why did Schwab have such a strong position in this profession? We all is not hard to find in all walks of life, a kind of innovation opportunities, some enterprises innovate their