Electronic Business and Commerce

Class 13


Topic:
Online brokerage
Class Plan:

In this class we examine the evolution of Charles Schwab, which views itself as "a technology company in the brokerage business."  As you read the case, you may want to reflect on the way Schwab achieved competitive advantage and how that way has changed over time.
Required Reading:
The Charles Schwab Corporation.
Additional Readings:
Study Questions:
    1. What is/are Schwab's value discipline(s)?
    2. How does Schwab make money?
    3. What are Schwab's key strategic assets?
    4. As of 1995-97, how was the Internet going to affect Schwab? Was the Internet a sustaining technology, supporting the Schwab business model, or was it disruptive, threatening the business model?
    5. What are the key features of Schwab's Internet strategy?  Do they apply to companies in other industries as well? 
    6. Now focus on the future, thinking a few years ahead. What are the key strategic threats facing Schwab in the future? What should Schwab do about them?