charles schwab&co case study
Post on 02-Dec-2014
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Mumneni Marut Vemuri Weng
Group
1
In 2000 0 Merges with U.S. Trust.
Introduces PocketBroker, wireless investing service.
0 Schwab Mutual Fund OneSource tops $100 billion in assets.
Acquires CyBerCorp, Inc. and Chicago Investment Analytics
Diversifies websites and hotlines
0 Schwab introduces pre-market trading for most Nasdaq and listed securities.
49% of revenue came form trading activity and 27% came form asset-based fees
0 Market downturn began
1996 : 40,800 trades > 2000 : 242,00 trades > 2002 : 101,500 trades
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
Charles Schwab
0 CyBerCorp, Inc. changes its name to Cyber Trader Inc. and enhances its
service with improved software, educational tools and tiered pricing.
0 U.S. Trust fined $10 million in a law case
(Fail to Comply the rule to disclose financial reports)
0 37% of revenue came form trading activity and 38% came form asset-
based fees
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2001
0 Schwab launches an alternative for investment research
Schwab Equity Ratings , Schwab Private Client and Schwab Advisor Network
Introduces Schwab Core Equity Fund and Schwab Hedged Equity Fund
0 Schwab Advisor WebCenter launches an advisor-branded website development and
hosting service
0 At year-end, total client assets reach $657 billion (excludes U.S. Trust)
0 Started to squeeze its less wealthy clients by raising fees and transaction charges on
smaller-sized accounts. (caused customers to defect to discount brokerages)
0 31% of revenue came form trading activity and 44% came form asset-based fees
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2002
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2003
0 In May 2003, Charles Schwab stepped down and gave sole control to David Pottruck as the
CEO.
0 Charles Schwab Bank is launched introducing price and service guarantee
on home mortgage loans.
0 $345 million acquisition of SoundView Technology.
0 Schwab and the Chicago Mercantile Exchange(CME) team up to provide
clients with electronic equities futures.
0 At the end of 2003, total client assets reach $830 Billion.
David S Puttrock
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2004
0 David S.Pottruck announces his resignation and Chuck Schwab is reinstated as the CEO of the
company.
0 Schwab and AXA Rosenberg introduce a new group of mutual funds, Laudus Rosenberg Funds.
0 The company did an about-face to compete with stronger competition by cutting trading fees on
average.
0 Schwab introduces the Charles Schwab Bank Visa credit card.
0 At the end of 2004, total client assets reach $942 billion
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2005
0 The company gives all clients access to Schwab Equity Ratings, inspiring the launch of
Schwab Premier Equity Fund and Schwab Portfolios.
0 There were 5,100 advisors doing business with Schwab.
0 Launches a new ad campaign: Talk to Chuck.
0 At the end of 2005, total client assets reach $1 Trillion
Unique Advantages 0 Schwab Institutional services
- Asset custody
- Back office operation
0 The business had grown from around $50 billion is assets under custody in 1995 to $439 billion
by 2006
0 Schwab Institutional represented 50% of Charles Schwab and Company’s growth by late 2006.
0 In Oct.2006,reduce the numbers of RIAs by more than 50%
- To establish deeper relationships with the remaining independent financial advisors in the network.
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
Technology Enhancement
0 Technology was clearly a key tool for both Schwab and its competitors , like Fidelity.
- Played a central role in the strategic shift that the firm made over the past few years.
0 The technology organization flattened from seven levels of management to four, reducing
by 50% in 2006.
- Focus on productivity , efficiency
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
0 Introduces Real Life Retirement services
0 Charles Schwab Bank launches the Schwab Bank High Yield Investor Savings
account.
0 Charles Schwab Investment management changes its target-date mutual funds to
enhance the portfolios and reduce expenses.
0 Adds a large-cap growth fund to its Laudus funds lineup.
0 Offers first exchange traded funds(ETFs) that trade commission free at Schwab.com
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2009
0 Announces reductions in online equity trade commissions.
0 The Corporation lists are shared on the New York Stock Exchange.
0 Charles Schwab and J.P.Morgan join forces in fixed income.
0 Acquisition of Windward Investment management Inc.
0 Reduces fees on six ETFs and introduces three low-cost bond ETF
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2010
0 The Company launched a new platform for active traders, StreetSmart Edge
0 Announced the mobile deposit capabilities for smartphone users, enabling easy
usage.
0 Launches a new program called Clients Speak which features online ratings and
reviews by Clients on the accounts or their experience with the company
0 Acquisition of optionsXpress Holdings Inc and Compliance11
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Now
In 2011
0 As of April 2012, the company's market
capital is $.19.48B
0 Ranks #559 in the Forbes Global 2000 list
Competitors
Today
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