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
What do a talking baby, stock markets, and golf all have in common? Nothing, right? Wrong. E*Trade – a popular public online financial services group – uses all three of these entities to create a commercial that has had people talking for years. When the commercial is over, you are left in shock at what you just saw, a baby in a high-chair talking about the stock market. But will the ad’s weirdness produce sales of the company’s program for years to come as well? Or just make it a highly talked about YouTube video? To the contrary, E*Trade does a professional job in conveying its message of simplicity to “average Joes” who are looking to either become day traders, start a
Unfortunately, E*Trade has had some problems as are noted on their BBB record, which includes an SEC lawsuit that has since been resolved.
Also, 14% of the financial transactions online are equity trades and Edward Jones is missing out on all the volumes through this channels. The case talks about the “self-directed” investors and the “validators” and Edward Jones is losing out on the business from this class of customers by not allowing on line trading.
I am choosing to do my Business Analysis paper on e-commerce. I will explain the importance of it as well as the effects on the global economy. I will discuss the advantages of telecommunications and information technologies in a business versus those businesses without e-commerce. I will also discuss the marketing strategies involved with e-commerce and how it helps businesses. Due to the global nature of internet business, electronic commerce (e-commerce) standards have become a priority on the national and international level. While most traditional businesses are subject to local, state, and national
E TRADE was the first online trading company which makes them a leader in innovative business. The company was founded in 1982 and became an IPO in 1996. The headquarters is in New York City. They are a brokerage and investing company. E TRADE provides tools that help individuals achieve their long-term investing goals by cutting out the middle man and helping people save on fees they would otherwise pay to a brokerage house. However, if you want a person to invest your money on your behalf or advise you on investment options, those services are also provided. They
This memorandum addresses some of the key issues with Edward Jones, which includes the lack of an online presence, possible cannibalization from larger firms, and the inability to manage funds from institutional investors. I conclude that the most effective of all of the theorized strategies would be a combination of Edward Jones’ original business model with an online platform. This plan would allow Edward Jones to stay true to its fundamentals, as well as attract new clientele and provide better service to its existing clients.
Alternatively, Edward Jones could tap into one of the prominent emerging technologies, the internet, to make their services more accessible at the client’s convenience. For instance, when a client needs to check the status of their investments, they can just login onto their computer whenever and wherever they please and reserve personal visits for important decision making or transactions. This way, financial advisors will have more time to seek new clients, while still being able offer personal face-to-face consultations, when necessary, as opposed to menial, less complex, services that clients could and would do themselves.
In this scenario, Christopher’s suggestion to increase the use of its equity financing, instead of the cost of debt, is more advantageous since equity financing would only cost the company 20% instead of 25%. By focusing on the equity financing to supplement and to finance its industry, it would cost less burden for the company, since there is no loan to repay or repayment obligation and this option could allow to channel more money towards its gross profit (Kunigis, 2018). In this regard it will also be beneficial for investors, knowing that they would incur good return in value if the William Industry is able to increase its sales. In that case, it would strengthen the investor’s financial backing due to the increase of its profit. Moreover,
E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the Internet. These business transactions occur either business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerceand e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes around online retail, (SearchCIO, 2015). In other words e-commerce is the buying and selling of goods and services online.
E-commerce is transactions conducted via electronic means such as the internet, email and SMS. It is considered to be one of the most important aspects of the internet to appear. As a result, people are able to exchange goods and services immediately regardless of their geographic location and time. More and more businesses conduct transactions on line, with some trading purely on-line thus reducing overheads and administrative costs.
E-commerce is a product that has been available since the early 90’s. It is something that people are familiar with. A product that is now part and parcel of people’s lives.
The continuous development of Internet leads to the growth of e-commerce. The electronic commerce is growing constantly due to the continuously increasing number of mobile and online users in the market, primarily the emerging markets. Besides that, the development of the Information Technology (IT), such as the advance of paying processes and the improvements of shipping method also the main reason to cause the growth of electronic commerce (John Ingham, 2015). Most consumers accept e-commerce as their feasible alternative in the purchase of goods and
Organizations conduct transaction on a global scale, and they must adapt to the advances in technology to compete and succeed. E-commerce will provide a platform to promote growth and
This is a research project aimed at four different topics within e-commerce and the dynamic landscape of logistics within this emerging field. I will first be focusing on current landscape of e-commerce. Secondly the focus will be shifted to a global perspective and the difference of markets based on region. Thirdly I will cover the future trends of e-commerce, and the differences that we may see. Finally, I will present data on select countries and how they are affected by e-commerce currently and the changes that we can expect to see in the future. While researching this broad and developing topic, I have found that there are a handful of takeaways that can be seen in the entirety of this paper:
revenues via e-commerce in the next two to three years (Richter, 48). The core of e-