E-Trade Financial Corporation Case Study

3219 WordsNov 23, 201113 Pages
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 empower self-directed…show more content…
Under the moderate scenario, we predict that performance will remain same, however, under the optimistic scenario, we predict a performance increase. Under the pessimistic scenario, conditions are expected to shift to Power of Entry and Exit, while the industrial structure stays the same. Under these conditions, a more competitive environment will emerge, which may lead to further declines in the company’s over all performance. The declines might be attributed to economic environmental factors, threat of terrorism and high oil prices which drive the market industry. 1) Recommendations for Moderate and Optimistic Scenarios. E-Trade business strategy has been soundly running as achieving significant improvement in ROE over the three time periods. Under the optimistic scenario, we observe the possibility of having benefits the demanding environment conditions; especially, more people will be getting into trading securities as the Internet has opened up the field of investment. Therefore, E-Trade should be upgraded the technology infrastructure as the demand grows. Even though this investment creates a temporary excess capacity, marginal costs will fall when Internet based approach achieves enough economic scale because the cost of adding another customer account or offering a new product in an online would be very low. In addition, as more consumers visit the site and buy its products, E-Trade should offer better deal to its
Open Document