Industry Analysis/Overview E*Trade is an online securities broker that specializes in efficient and economical trading Highly competitive industry, Major competitors are Charles Schwab, Ameritrade, TD Waterhouse and DLJ? Direct High paid brokers at Brick and Mortar stores are the thing of the past, internet is the way of the future E-trade offers fast trade execution, good customer service, reasonably priced commissions and rich detailed web site. Objectives Online security broker that solely uses the internet and touch-tone dialing Key SWOT ElementsStrengths 14% of the total market share (2nd)First online company to make moneyDirect international trades to exchanges around the worldRevenues increased 126% in 1999Brand name for online investing (first mover)Aggressive marketing WeaknessesLess Client AssetsLowest revenues in the industry for exclusive online brokers as of year end 1998Lost 54, 438,000 in 1999Its extensive marketing and advertisement has kept E*Trade at an operating lossE*trade is just securities and solely onlineOpportunitiesTrading volumes are at an all-time highIncreased internet usage and accessibility online trading is expected to increaseAverage online trader is younger (39 years old)Market to the retired sector since they are Acquire an online bankThreats Charles Schwab is both a brick and mortar as well as onlineSenior citizens represent 80 percent of investors not online-they may find brick and mortar more friendlyHighly competitive industry, E*Trade must keep up with competition like SchwabNegative publicity of system responsiveness and crashes of the internet AlternativesMarket penetration into the areas with internet access. More money into the marketing and advertisement departmentsForm alliance with another securities business(like Ameritrade)Develop other internet tools to aide their website...
