On-line broking: Surviving the downturn at Merrill Lynch, Charles Schwab and E*Trade

Bakhru, A. and Brown, A. (2005). On-line broking: Surviving the downturn at Merrill Lynch, Charles Schwab and E*Trade. In: Grant, R.M. ed. Cases in contemporary strategy analysis, 5th edition. Oxford, UK: Blackwell.

URL: http://www.blackwellpublishing.com/grant/default.h...

Abstract

The advent of the Internet resulted in established brokerage firms being challenged by a host of online upstarts riding on the back of the late 1990s technology boom. By 2001, the game has changed - declining trading volumes are putting pressure on the whole industry and on the online brokers especially. How should E*Trade (an online broker), Schwab (a discount broker) and Merrill Lynch (a full-service broker) adjust to the new market conditions, and which business model is likely to be most successful in the future?

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