What Is The Charles Schwab Case
Subject: Case Summary: Charles Schwab in 2002
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Situation
Founded in 1975, The Charles Schwab Corporation provides securities brokerage and related financial services to its customers. With its customer centric philosophy and new technology, Schwab was able to lead the investment fever of 90s.However when the bubble busted, Charles Schwab's brand was caught in an increasingly competitive and commoditized category, stuck between deep discount brokers and full service firms. In 2002, the company has decided to expand and restructure its services to three classes of investor: self-directed investors, validators, and delegators. These new services were to meet its all customers whom it evolving with. …show more content…
Problem Statement
1.
Schwab has to catch up with new technology and customers' needs to survive and expand in the highly competitive industry.
2. Even the company succeeds to create a seamless, integrated multi-channel offering, it still need to handle massive organization changes to develop the capabilities and culture required to implement its new business model.
3. Is it possible Schwab to maintain its position in the financial service markets, while global economy declining?
Analysis
Even Schwab was in the difficult situation, it had to compete with its competitors. It had multiple options to reinvent itself quickly and successful.
The Equity Rating
System(ERS)
This system enables individual investors to tap into a sophisticated stock performance analysis model. What is good about Schwab's system- its objectivity- is also a drawback.
World New Standard
The ER system successfully set a new world standard of personalized financial advice.
UniqueCharacteristics
1) Its full range of high quality, easy to use brokerage, 2) emphasis on putting individual customers in control of their investments, 3) the value delivered, and 4) its commitment to provide a trusted, conflict-free place for individuals to trade
Value Position
Schwab's effective integration of multiple service channels, its strategic use of advanced technologies, and its track record for successful innovation were key elements of Schwab's value proposition.
Recommendation
Schwab has a successful breakthrough in its services. It uses the technology to provide innovative service s and the technology is multiple, easy-to-use channels to do business. Schwab is widely recognized as a benchmark in the industry. With the progress of the internet, there are more and more competitors in the world and new investors flood the market. They can grasp the chance to enlarge their market. The new strategy positioned the company to capture market share in a huge, rapidly growing market. It is indeed a smart choice. However, the new technology and services will come up every second, so it has to concentrate on the trend of market constantly to update its technology and services.
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Situation
Founded in 1975, The Charles Schwab Corporation provides securities brokerage and related financial services to its customers. With its customer centric philosophy and new technology, Schwab was able to lead the investment fever of 90s.However when the bubble busted, Charles Schwab's brand was caught in an increasingly competitive and commoditized category, stuck between deep discount brokers and full service firms. In 2002, the company has decided to expand and restructure its services to three classes of investor: self-directed investors, validators, and delegators. These new services were to meet its all customers whom it evolving with. …show more content…
Problem Statement
1.
Schwab has to catch up with new technology and customers' needs to survive and expand in the highly competitive industry.
2. Even the company succeeds to create a seamless, integrated multi-channel offering, it still need to handle massive organization changes to develop the capabilities and culture required to implement its new business model.
3. Is it possible Schwab to maintain its position in the financial service markets, while global economy declining?
Analysis
Even Schwab was in the difficult situation, it had to compete with its competitors. It had multiple options to reinvent itself quickly and successful.
The Equity Rating
System(ERS)
This system enables individual investors to tap into a sophisticated stock performance analysis model. What is good about Schwab's system- its objectivity- is also a drawback.
World New Standard
The ER system successfully set a new world standard of personalized financial advice.
UniqueCharacteristics
1) Its full range of high quality, easy to use brokerage, 2) emphasis on putting individual customers in control of their investments, 3) the value delivered, and 4) its commitment to provide a trusted, conflict-free place for individuals to trade
Value Position
Schwab's effective integration of multiple service channels, its strategic use of advanced technologies, and its track record for successful innovation were key elements of Schwab's value proposition.
Recommendation
Schwab has a successful breakthrough in its services. It uses the technology to provide innovative service s and the technology is multiple, easy-to-use channels to do business. Schwab is widely recognized as a benchmark in the industry. With the progress of the internet, there are more and more competitors in the world and new investors flood the market. They can grasp the chance to enlarge their market. The new strategy positioned the company to capture market share in a huge, rapidly growing market. It is indeed a smart choice. However, the new technology and services will come up every second, so it has to concentrate on the trend of market constantly to update its technology and services.