In 1996, Charles Schwab, Inc (Schwab) first online trading and experienced phenomenal growth, creating a whole new market for their goods and services. In doing so, it significantly changed its business model. The ease with which information can be obtained via the Internet means that investors can bypass traditional brokers (distribution mediation) and trading on its at a much cheaper price. This is not only lured many new traders in the market, but also a lot of new competitors. Price wars ensued, which has shrunk the field. In order to maintain its dominant position and continue to grow, Schwab had to find other ways to expand the market base. Case, special attention is paid to Schwab successfully created a new market of customers, a pioneer in the creation of web-shopping, and how this, in turn, has led to new challenges and opportunities. "Hide
by Ali F. Farhoomand, Peter Lovelock, Mary J. Cascales Source: University of Hong Kong, 16 pages. Publication Date: January 1, 2000. Prod. #: HKU067-PDF-ENG
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