Schwab recommendation to sustain its competitive advantage

Running head: CASE STUDY&nbsp&nbsp 1

Schwabrecommendation to sustain its competitive advantage

October8, 2014.

CharlesSchwab: A category of one

To:CharlesSchwab: A category of one

Recommendationfor sustaining competitive advantage in the market

Onlinetrading and brokerage of stock, bonds and mutual transactions will bea dominant force in the coming years. In order to retain itsdominance and sustainability in the market, Schwab Company needs tomaintain its competitiveness through more office branch networks inmajor cities and rich suburbs. Most clients in the financialinvestments want the confidentiality and assurance that the brokeragefirm they rely on for stock and mutual funds investment is reliable.In addition, the firm needs maintain its pricing strategy, fullonline service brokerage and more marketing campaigns.

Mergersand acquisition with other financial institutions is anotherimportant strategy that would help sustain the competitiveness of theSchwab Company as they enlarge the company’s market base. In asimilar way, the competitors are merging and forming acquisitionsSchwab Company needs to reiterate by forming more convergence withother financial service investment firms. The integration of lowcommission, a quasi-full brokerage and superior customer services canenhance the firm sustained competitiveness in the competitivebrokerage market.

Impactfulbranding that is aimed at educating and influencing the public on theneed to attain financial success is important. Clients felt confidentand informed when more information and education on financialinvestment given. Schwab Company needs to spend more fortune inonline and open advertisement that is targeted to young and ambitiousaudience. Furthermore, the firm should maintain and increase itsproducts and services offered to investors. For instance, the breadthof online, face to face and telephone services that inform clientspromptly on changes in stock or mutual prices is an important aspectthat would enhance the firms competitiveness in the market. Clientsare delighted by prompt information and services in the investmentmarket as this helps them make timely decisions on investment.

Amajor challenge for online services is IT infrastructure, however,Schwab needs to invest on efficient and reliable IT infrastructure toincrease and maintain its market competitiveness. Lastly, despiterising competitiveness in online brokerage, Schwab should press onand enhance its value proposition through improved deep discountoffers that rival those of its competitors.


SchwabCharles: A category of one. (2000). Golden Gate University, ReemGohar: Spring Press.