Download - Charles Schwab&Co Case Study
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Mumneni Marut Vemuri Weng
Group
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In 2000 0 Merges with U.S. Trust.
Introduces PocketBroker, wireless investing service.
0 Schwab Mutual Fund OneSource tops $100 billion in assets.
Acquires CyBerCorp, Inc. and Chicago Investment Analytics
Diversifies websites and hotlines
0 Schwab introduces pre-market trading for most Nasdaq and listed securities.
49% of revenue came form trading activity and 27% came form asset-based fees
0 Market downturn began
1996 : 40,800 trades > 2000 : 242,00 trades > 2002 : 101,500 trades
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Charles Schwab
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0 CyBerCorp, Inc. changes its name to Cyber Trader Inc. and enhances its
service with improved software, educational tools and tiered pricing.
0 U.S. Trust fined $10 million in a law case
(Fail to Comply the rule to disclose financial reports)
0 37% of revenue came form trading activity and 38% came form asset-
based fees
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In 2001
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0 Schwab launches an alternative for investment research
Schwab Equity Ratings , Schwab Private Client and Schwab Advisor Network
Introduces Schwab Core Equity Fund and Schwab Hedged Equity Fund
0 Schwab Advisor WebCenter launches an advisor-branded website development and
hosting service
0 At year-end, total client assets reach $657 billion (excludes U.S. Trust)
0 Started to squeeze its less wealthy clients by raising fees and transaction charges on
smaller-sized accounts. (caused customers to defect to discount brokerages)
0 31% of revenue came form trading activity and 44% came form asset-based fees
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In 2002
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In 2003
0 In May 2003, Charles Schwab stepped down and gave sole control to David Pottruck as the
CEO.
0 Charles Schwab Bank is launched introducing price and service guarantee
on home mortgage loans.
0 $345 million acquisition of SoundView Technology.
0 Schwab and the Chicago Mercantile Exchange(CME) team up to provide
clients with electronic equities futures.
0 At the end of 2003, total client assets reach $830 Billion.
David S Puttrock
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In 2004
0 David S.Pottruck announces his resignation and Chuck Schwab is reinstated as the CEO of the
company.
0 Schwab and AXA Rosenberg introduce a new group of mutual funds, Laudus Rosenberg Funds.
0 The company did an about-face to compete with stronger competition by cutting trading fees on
average.
0 Schwab introduces the Charles Schwab Bank Visa credit card.
0 At the end of 2004, total client assets reach $942 billion
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In 2005
0 The company gives all clients access to Schwab Equity Ratings, inspiring the launch of
Schwab Premier Equity Fund and Schwab Portfolios.
0 There were 5,100 advisors doing business with Schwab.
0 Launches a new ad campaign: Talk to Chuck.
0 At the end of 2005, total client assets reach $1 Trillion
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Unique Advantages 0 Schwab Institutional services
- Asset custody
- Back office operation
0 The business had grown from around $50 billion is assets under custody in 1995 to $439 billion
by 2006
0 Schwab Institutional represented 50% of Charles Schwab and Company’s growth by late 2006.
0 In Oct.2006,reduce the numbers of RIAs by more than 50%
- To establish deeper relationships with the remaining independent financial advisors in the network.
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Technology Enhancement
0 Technology was clearly a key tool for both Schwab and its competitors , like Fidelity.
- Played a central role in the strategic shift that the firm made over the past few years.
0 The technology organization flattened from seven levels of management to four, reducing
by 50% in 2006.
- Focus on productivity , efficiency
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0 Introduces Real Life Retirement services
0 Charles Schwab Bank launches the Schwab Bank High Yield Investor Savings
account.
0 Charles Schwab Investment management changes its target-date mutual funds to
enhance the portfolios and reduce expenses.
0 Adds a large-cap growth fund to its Laudus funds lineup.
0 Offers first exchange traded funds(ETFs) that trade commission free at Schwab.com
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In 2009
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0 Announces reductions in online equity trade commissions.
0 The Corporation lists are shared on the New York Stock Exchange.
0 Charles Schwab and J.P.Morgan join forces in fixed income.
0 Acquisition of Windward Investment management Inc.
0 Reduces fees on six ETFs and introduces three low-cost bond ETF
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In 2010
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0 The Company launched a new platform for active traders, StreetSmart Edge
0 Announced the mobile deposit capabilities for smartphone users, enabling easy
usage.
0 Launches a new program called Clients Speak which features online ratings and
reviews by Clients on the accounts or their experience with the company
0 Acquisition of optionsXpress Holdings Inc and Compliance11
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In 2011
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0 As of April 2012, the company's market
capital is $.19.48B
0 Ranks #559 in the Forbes Global 2000 list
Competitors
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