The Wealthfront Generation   Harvard Case Solution & Analysis

The Wealth front Generation Case Study Solution

What is the opportunity that Wealthfront is trying to seize?

Wealthfront has been seizing many opportunities in order to grow its business. These opportunities include using artificial intelligence and advanced APIs in order to increase its business. Moreover, the company has been targeting millennial which are born from 1985 to 2000 to make investment as they are potential customers and have a complete knowledge of using recent technologies. Moreover, the previous customers were unaware and afraid of investing and company faced two great depressions in their eras. Also, itdoes not have time to come and visit areas and investment managers, rather it is comfortable to work by using technologies.

As company has achieved a lot of growth and prosperity in a very short period of time, company is planning to expand itself. Currently, company is operating by facilitating different customers which include millennial and baby boomers. Now, the company wants to expand its services by facilitating to other businesses and develop its business model to work differently and add new channels to work business to business.

Business to business exploits many opportunities for the company as business to business clients are few and are often more expensive compared to business to clients. On the other hand, the company receives more order and high investment opportunity when operating in business to business. In addition, potential revenue can be generated in less period of time compared to traditional business model. It also contains lesser clients due to limited businesses, but the same amount of revenue is generated as they have bigger investments and high potential orders. Consequently, more focus and attention could be paid on each client.

It has also been analyzed that business operating clients are serious and rational about their investments as they invest a higher amount of money and think for many people rather than themselves. In addition,business to business clients often build long term relationships with suppliers.

Question number 2

Why do millennial need special targeting? Are they different from other retail clients? How?

Millennial are the generation who were born from 1985 to 2000. These are the only people who have faced different technological advances since their birth. Moreover, they have seen ups and downs of technology and experienced the technological growth with the passage of times.

Other retail clients that have been targeted by Wealthfront are baby boomers who were born in 1954 to 1964 and has aged till now. Moreover, the clients faced many experiences in life such as marriage, birth of children, death of parents and close relatives, death of spouses and others. Therefore, it has been assumed by the company that the people have no interest in saving money and to grow as they are mentally prepared to die.

Therefore, company has specially targeted millennial generation as ithas scope to live. Moreover, this generation was afraid of investing in any kind of money market because ithas experienced two great depressions and economic crises in the world. Consequently,company has specially targeted this generation in order to attract them and convince them for making investment as they have higherearnings in the form of cash and are likely to earn more in the future.

Question 3

 What is Wealthfront’s approach to make itself attractive to this generation? Does Wealthfront add value to its clients? How?

It has been observed and analyzed by Nash, CEO of the firm that Millennials are overlooked by investment firms and have never been provided with the facility to invest their cash. Moreover, it has also been analyzed that Millennials control over $1-2 million of assets and it would reach to $7 trillion in 2010. Therefore, company should focus in this generation and grab this opportunity from other competitors who have overlooked this opportunity.

In order to make itself attractive to this generation, the company used their skepticism as their strength. Wealth front allowed them to manage their own assets and make investment as per their wish. Moreover, different advisers were available in order to facilitate customers with their experienced advises to direct customer to take wise step for their investment. In addition, the use of technology and easy access to their assets have also played an important part to attract them. Also, the business model used by the company, same as Dropbox named as Freemium has also played an important part.

By allowing them to manage their won assets as well as providing the clients free access to visit their assets at any time have helped company to attract the customers and create value for them.Moreover, the company also allows them to manage their limited assets, which are priced between$5000 to $25000 and can be managed for free. In addition, if the company would be referred by its client to anyone else, benefit of additional $5000 assets would be managed for free. Also, the person who has been referred would also receive bonus of managing his assets of $5000.These strategies help the company to attract its respective customers......................

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