Case Study Charles Schwab Corporation

Yes, I do agree with Dan Leeman’s Statement. Charles Schwab Corporation was established as early as 1963, where Chuck (Charles) Schwab and his two partners created a news letter- Investment Indicator. They had a subscriber base of 3000 subscribers, where they paid $84 a year. As Schwab and his partners became more recognized, the brand transformed into a financial giant in the brokerage and banking industry. Charles Schwab and his partners found a gap in the market; introducing a discount brokerage brokerage firm. As Schwab quickly grew in revenue, innovation became a key to attracting new customers. Opening their first branch in Sacramento California in 1975 played an important role in determining whether the business will sink or swim. In …show more content…
Schwab had vast in-house IT experience and decisions could be made easily from a management level without the risk of misinterpretation. This brought about e.Schwab, where customers could trade as they would through a regular Schwab account, while offering a commission of $39.95 for any stock trade up to 1000 shares. Customers also received free email service when joining e.Schwab, and exceeded expectations when reaching 25,000 customers in two weeks. By the end of March in 1996, Schwab included Internet trading as a part of e.Schwab, and then to all Schwab customers at a 10% discount. Soon after, in 1998 Schwab acquired two Canadian brokerages; and by 2000 merge with U.S. Corp and also acquire CyBer Traders to strengthen their online trade. After the new millennium commenced, Schwab expands, looking at independent advisors and company plan sponsors, while opening up Charles Schwab Bank in 2003. The extension of their services continues while being supported with up-to-date …show more content…
The risks came with the rewards, as so too did the customers and profits. Charles Schwab Corporation used technology to catapult them to succeed and help set the bar on many occasions for other brokerage firms to follow. With the strategic move of managing their IT in-house, they were able to make strategic decisions when it came to IT management and software released. Schwab also offered services to assist customers that purchased the software, and later on provided other services such as banking; and later on in 2014 released a mobile application, giving an on-the-go experience to its customers. Schwab Corporations took advantage of a bad situation in the brokerage