Investment Technology Group Harvard Case Solution & Analysis

ITG CEO Robert Gasser thought that the financial crisis has permanently affected the business model of the company. As a leader in trade analytics and execution for institutional equity investors, ITG has grown since its inception in 1987 up to the sharp increase in the sale of shares. In 2009, however, investors curb their shares trade, depressing ITG is much fee income and revenue fell by 63%, resulting in the first unprofitable quarter ITG since 1988. Gasser was convinced that the problems of ITG was not simply a function of reducing the volume of trade in 2009 recession showed the limits of customer willingness to pay for the cost of ITG delivered and infrastructure ITG was built to support clients with custom software tools and technical support also rose beyond the acceptable level . With its management team, Gasser developed two of the answer to the challenge: reducing the number of staff and a focus on the customer, that the most valuable thing ITG offers. While significant savings targets will be implemented partly through layoffs, he wondered about the ability of ITG to deal with these changes. Adjusting their clients portfolio means that ITG will waste products from some clients with neighbor in new ways, and he was not sure how customers will react. "Hide
by Clayton Rose, David Lane Source: Harvard Business School 22 pages. Publish date: May 21 2010. Prod. #: 310064-PDF-ENG

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