Dave Pottruck, president and co-CEO of Charles Schwab Corp (CSC), examines news June 1, 1999 edition of Wall Street Journal, he was going to send shock waves through the brokerage community. The newspaper has just announced its decision to launch the Merrill Lynch Internet trading on December 1, 1999. Clients at Merrill Lynch would be able to trade online for $ 29.95/trade, or at least an annual fee of $ 1,500, make as many deals as they wanted. Now that Merrill Lynch joined the online revolution sale, Pottruck wonder how would it affect Charles Schwab & Co, Inc (Schwab), and that the company needs to do in response? Pottruck said that Merrill Lynch, ETrade, WingspanBank, and Schwab, while competing for the same customers, appears to be doing it with a variety of starting points. Pottruck said the competitive dynamics of the brokerage industry and wonders how Schwab maintain its growth trajectory in the face of so many different companies? What other companies can enter the space? As Schwab protect and grow its existing customer base? Schwab was getting "squeezed in the middle," or it can create a "category of one?" "Hide
by Robert A. Burgelman, Margot Sutherland, Kelly Dubois Source: Stanford Graduate School of Business 35 pages. Publication Date: Aug 01, 1997. Prod. #: SM35-PDF-ENG
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