Charles Schwab & Co. Inc., By Sutherland, M. & Du Bois, K.

IntroductionThe success of the Charles Schwab Corporation (?CSC?) hinged on the de standard of the brokerage outfit by the United States of America Government . No regulation on the chargeable trading commission, created opportunities for all the traders in the retail investment sector. As an entrepreneur, Charles Schwab identified this change as tombstone to enter a new market. CSC differentiated from the competition and chose to address low cost feeler to investors and not advice on trading. victimization technology as a tool, CSC grew to a multi-billion dollar smashed with 6.1 million customers in 1999 . The focus of our compend will drop curtain on how this was achieved ? and if this advantage can be maintained.

Key discontinuities and limits employ to CSC and how these affected their business response.

Since 1977, CSC ventured into new territory by ever-changing the product they offered in comparison to other brokers. Rather than advising their clients on which securities to buy and when to sell, CSC decided to provide clients with low cost and a safe way to door and control their own investments. This strategy was new to the investment industry, since the understanding was that clients were generally un-informed .



The investment businesses, at that time, believed in face-to-face contact with the customers in order to turn out a dependency on the information that was only ready(prenominal) at the investment houses . The use of the internet, and readily available access to data by the public through online banking and trading companies , created a problem for CSC.In this regard, the graph below indicates discontinuity of the business model.

According to our analysis the discontinuities can be explained as follows:The discontinuity on the graph is in the midst of the existing business models of CSC namely low cost access to customers (A) (through different products like OneSource,

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