Charles Schwab & Company - Case Study Example

Charles Schwab & Company Case StudyHistory:Charles Schwab & Corporation, an American banking and brokerage company is based in San Francisco, California. It was initially launched in 1963 by Charles R. Schwab and his two partners as an investment newsletter publisher and later by 1971 it emerged as a Mortar brokerage firm and newsletter publisher. The Company was named Charles Schwab & Company when the former Commander Corporation’s stocks were bought by Charles R. Schwab. The firm soon started offering discount brokerage and became one the leading discount brokerage firms in the world.

Internal Environment:The company provides a diversified product range for instance securities brokerage, banking and custodian services , mutual funds, corporate and retirement services and other financial and advisory services. Moreover the company offers services with low commission charges which results in huge revenues and consumer trust. The recent sale of the “US Trust” has decreased profitability. Since the company operates in only a few countries it has risk of losing business.External Environment:The aging population in countries it operates like Hong Kong , USA and UK is likely to increase demand of insurance and other retirement and corporate services the firm offers.

The positive prospects of the asset management industry are likely to bring benefits to the firm. Despite the opportunities the firm is likely to be affected by the global recession which has reduced demand. The increasing number of new entrants in the market will increase competition for the firm. Volatility in financial markets can cause Charles and Schwab & Company’s profits to decline.SWOT Analysis:The firm should continue to prioritize consumers and quality product in order to retain profitability.

It can start operations in other countries that may have potential demand for the services offered. The company can modify and polish its services by offering new convenient plans for its potential customers in order to combat competition. Market research should be conducted to offer services that are better that competitors in order to retain market share.Corporate Level Strategy:The firm was the first discount brokerage company. Its strategy is to empower individual investors by offering discounts and convenient plans.

It was the first to offer 24 hours a day and 7 days a week services. Moreover it offered automated telephone services(Rimma Kats,2011). It used the strategy to ease the consumer by offering automated online and cell phone facilities to increase market share and profits.Business Level Strategies:The firm has an organized system for smooth running of the company. The firm has maintained different department. Each department handles a particular aspect. The firm has specialists to maintain and develop software for its mobile commerce facility.

The firm well identifies the marketing segment for each service it offers and modifies its packages for different units.Structure and control:The firm took a strategic and proactive approach. It hired market experts to analyze market requirements. Quality assurance and performance measuring programs have been implemented by the firm. The firm promotes innovation and creativity and a sense of trust and community among staff(Ringwood and Tibbo,2011). Communication is effective and teamwork is effective.

Recommendations:Since the firm’s services are mostly information technology based it should develop devices to have backup data in case of any fraud or scam. The firm should expand in new potential markets in other countries. Transparency of the process should further be encouraged since e-commerce business is often risky. Furthermore the firm should continue its innovation and improbvement efforts to increase market share. New techniques like Six Sigma should be used to make the process more efficient.Refences1.Rimma Kat, “Charles Schwab cements mobile banking strategy via remote check deposits.

” May 27,2011. Web. June 16, 2011http://www.mobilecommercedaily.com/2011/05/27/charles-schwab-lets-clients-manage-account-via-mobile-deposit-app2. John Ringwood and Scott Tibbo, “Strategic Sourcing case study Charles Schwab & Co., Inc”. IMFA World workplace San Diago, CA October 2006. Nd. Web. June 16, 2011http://www.expensemanagement.com/ems-articles-folder/IFMA%20Presentation%2010-06.pdf