Charles Schwab Corporation Essay
Charles Schwab Corporation: The Challenges Ahead
Julieta Cabiling-Hugo
Julio C. Canas
Boston University
MET AD 741 The Innovation Process – Developing New Products and Services
April 21, 2014
Abstract
The Financial Services Industry is evolving due to several factors: changes in the industry’s basis of competition, demographic changes that imply a wealth transfer process to younger generations, and new trends that are re-shaping the traditional social order. All those elements bring complex challenges to Charles Schwab Corporation (CSC), a company that has consistently managed to stay on top of the competition. In order to succeed, innovation plays an important role in the process. However, given the market’s saturation in terms of products and services, the innovation must be focused on transforming the business model …show more content…
A business that takes the extra step of anticipating and providing for an obvious need can typically generate loyal, repeat customers. Its fee structures shall be reviewed and validated to determine a better mix and identify opportunities, which may imply lowering fees, or changing the fee structure for services. In order to achieve that goal, the company could rely on tools such as “Ethnographic Research” to gather relevant information from its customers. Nonetheless, considering the nature of the services provided, the traditional approach of this process might be costly and inefficient, given the different client segments and the geographical barriers. Hallet and Barber (2013, p. 2) argue that ethnographic researchers must perform their investigations on multiple levels, based on the fact that technology has created online spaces (i.e. “online habitat”) that are integrated into individual’s daily lives. Thus, taking into account the new digital social order, CSC could leverage those channels to implement the aforesaid method in a cost-efficient
Julieta Cabiling-Hugo
Julio C. Canas
Boston University
MET AD 741 The Innovation Process – Developing New Products and Services
April 21, 2014
Abstract
The Financial Services Industry is evolving due to several factors: changes in the industry’s basis of competition, demographic changes that imply a wealth transfer process to younger generations, and new trends that are re-shaping the traditional social order. All those elements bring complex challenges to Charles Schwab Corporation (CSC), a company that has consistently managed to stay on top of the competition. In order to succeed, innovation plays an important role in the process. However, given the market’s saturation in terms of products and services, the innovation must be focused on transforming the business model …show more content…
A business that takes the extra step of anticipating and providing for an obvious need can typically generate loyal, repeat customers. Its fee structures shall be reviewed and validated to determine a better mix and identify opportunities, which may imply lowering fees, or changing the fee structure for services. In order to achieve that goal, the company could rely on tools such as “Ethnographic Research” to gather relevant information from its customers. Nonetheless, considering the nature of the services provided, the traditional approach of this process might be costly and inefficient, given the different client segments and the geographical barriers. Hallet and Barber (2013, p. 2) argue that ethnographic researchers must perform their investigations on multiple levels, based on the fact that technology has created online spaces (i.e. “online habitat”) that are integrated into individual’s daily lives. Thus, taking into account the new digital social order, CSC could leverage those channels to implement the aforesaid method in a cost-efficient