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E-Trade Financial Corporation Case Study

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RIGA TECHNICAL UNIVERSITY

STRATEGIC MANAGEMENT COURSE

E-TRADE FINANCIAL CORPARATION CASE STUDY

by

Asli Seven

Nazir Emre Adir

Shamla Tsargand

Lecturer: Andrejs Chirjevskis

Autumn 2011

Question 1.Revise E-Trade Vision and Mission Statement.Develop a SWOT anaylses.

When we have a look at E-Trade’s vision statement, we see that they emphasize on self-directed investors and the world market. For the company being reachable from even sitting at home is important. They say “It’s about bringing it home.”Accessebility in anywhere in the world is the main point about the avaliabilty. But there are some missing points in the vision statement. From our point of view the vision statement could be revised as below:

“To …show more content…

Recommendations for E-Trade for improved performance in the next years given optimistic, moderate and pessimistic scenarios for the future:

Create educational investing streaming website videos.

We think E-Trade should leverage their technological infrastructure and create streaming videos on their website that explain the different aspects of investing. These videos would be broken up by subject like “Short Selling”, “Buying Bonds”, etc. and would be geared toward the entry or intermediate investor. Since E-Trade’s investor is significantly more technologically adept than A.G. Edwards they should cater to this capability by providing on-line training. Streaming videos would allow E-Trade’s customer to educate themselves about aspects of the investing they are not familiar with. it will help bring in a new market of individuals. We think this recommendation would pay dividends and be beneficial regardless of the future scenario.

Lower Company Debt

E-Trade should try to improve their balance sheet by lowering their overall debt load. E-Trade’s debt load has been a burden on their growth in the last couple of years and with the overall stagnation in the investor services market this could help them gain a competitive advantage. Improving the balance sheet is a common tactic for companies to try to continue to grow earnings-per-share in tight economic times. E-Trade’s debt load would not put them at a disadvantage in the optimistic scenario but would

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