Jereca Pearl T.
Marangga
Jasper Marcojos
Jemar Marquez
I.
Executive Summary
In 1892, Bill Porter initiated the establishment of E*TRADE as a service agency. Online trading and
quoting were conducted with its assistance by firms like as Fidelity and Charles Schwab. It was the first
service of its kind to make it possible for individuals to invest using their own personal computers at
prices that were far lower than those of traditional brokerage fees.
According to the company's vision statement, "to allow self-directed investors to make educated
investment decisions and take charge of their financial destiny by providing anytime, anywhere access to
the world's main investment markets," E Trades' mission is "to allow self-directed investors to take
charge of their financial destiny by providing anytime, anywhere access to the world's main investment
markets." This is the purpose that their product was intended to serve.
"To create long-term shareholder value through superior financial performance driven by the delivery of
a diverse range of innovative, customer-focused financial products and services and supported by an
operating culture based on the highest levels of teamwork, efficiency, and integrity," their mission
statement states. This is how they intend to carry out their mission statement. As a result, they are not
only attempting to give a less expensive alternative to traditional trade, but they are also providing high-
quality customer service and new concepts.
II.
Findings.
E*Trade also offers corporate services to help companies and employees alike manage and understand
their stock options and benefits. But, there are also problems and threats that E*trade should look for.
Some of the most intense competition E*Trade faces is in its main revenue business of discount
brokering is the Deep-Discount Migrators: When the world wide web matured, it became easier for
deep-discount brokerage firms to enter the online world and reach customers directly. Using the
technology to their advantage for cost reduction and communications purposes, these firms were able
to establish their own
homepages. Some of these competitors are National Discount Brokers and Lombard Institutional
Brokerage. These firms offer competition with E*Trade‟s brokerage business, but as the company
continues to enter new markets, it also faces competition from traditiona lbanks and from credit card
companies, such as Discover and Capital One. The company will have to continually re-evaluate how it
will combat these rivals. The firm is presented with several options, which include price leadership and
the diversification of services. The competition will continue to grow and intensify as the market grows
into the future.
Ill.
Alternative Solutions.
The opinions are as varied as the individual experiences of clients.
Some analysts believe the company is doing the right things to get and keep customers. One
characteristic of E trade Company that are seems to unique and they are only the ones to provide in
their customer is the number of services that they've put together in a website that links all accounts
and services together in a format that is easy to navigate. Aside from it, the requirements to open an
account are minimal compare to others. $1,000 for the bank or $0 for the broker account. Schwab
requires a minimum of $5,000 for a broker account. E*Trade is really a good place to conduct financial
business. They also provide a well laid out .Account Services page and provides a variety of research
tools, including a very extensive library of both general news and “how to” documents".
IV.
RECOMMENDATION
E*TRADE provides several services and products to investors and traders, including a fully functional
trading platform for regular clients. Brokerage accounts provided by the firm eliminate the need for
traders to pay commissions on trades, which is especially helpful for novices who are seeking to build a
modest trading portfolio. E*TRADE is profitable because it provides investors and traders with low-cost
brokerage services. The business operates on a paradigm that brings in money from interest on the free
float and compensation for the flow of orders. E*TRADE should combine with another corporation, such
as TD Ameritrade, in my opinion. TD Ameritrade is not as huge as Charles Schwab or Fidelity
Investments, but it is comparable to E*Trade. If the two companies merged, they would increase their
market share and become a greater threat to both Fidelity Investments and Charles Schwab. E TRADE
does not have the management in place to recover from its current position, so a merger with a
company with established leadership is exactly what it requires.It was also mentioned at our alternate
solutions that Etrade also has a very low minimum pay to create an account in comparison to those
other competitors, so we think that signing up for an account as an investor who wants to use Etrade's
service would be beneficial to a large number of investors in terms of saving money on brokers'
fees.Because of its user-friendliness and accessibility, Etrade is a wonderful option for novice investors
looking for low-cost stock or other investment options.
V.
Implementation
Since we are all aware, Etrade businesses are becoming increasingly popular among investors due to the
fact that they require fewer resources in terms of setting up a bank account and do not require any
payment for brokers' fees. As a result, we are working to make Etrade businesses more user friendly and
to increase the number of services that they provide. Also, the minimum amount required to open a
bank account would be lowered in order to provide the other businesses with a greater competitive
edge.
