Charles Schwab: A Category of One

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Charles Schwab: A Category of One

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Publication Date:
December 23, 1999

Industry:
Financial Services

Source:
Harvard Business School

Examines Charles Schwab’s on-line discount brokerage firm and questions whether or not Schwab has effectively balanced the old and new world of stock trading, and has remained a leader between giants like Merrill Lynch and Internet pure plays like E-Trade. Also looks at how Schwab has remained a competitive player with 363 brick and mortar branches while continuing to boost 81% of its trades over the Internet. While major bank mergers began to emerge as dominant online players, Schwab’s unique status as a discount brokerage began to wane. In the wake of powerful full-service firms gaining online presence and discount brokerages offering $4.95 trades, how could Schwab sustain its competitive advantage?

Copyright © 2020 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

Charles Schwab: A Category of One

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