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Charles schwab   AMP
 

Charles schwab AMP

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PBS, AMP, E-commerce Management

PBS, AMP, E-commerce Management

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  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential
  • Monitor Company ©1999 — Confidential

Charles schwab   AMP Charles schwab AMP Presentation Transcript

  • Exhibit 2-1: Framework for Diagnosing Market Opportunity Seed Opportunity in Existing or New Value System Uncover Opportunity Nucleus: Identify Unmet and Underserved Needs Identify Target Segments Declare Company’s Resource-Based Opportunity for Advantage Assess Competitive, Technical and Financial Opportunity Attractiveness Make Go / No Go Assessment
  • Supporting Slide 2-A: Requirements of an Effective Segmentation Meaningful Actionable Substantial Measurable
      • Customers must demonstrate needs, aspirations or behavioral patterns that are similar within a segment and different across segments
        • A distinction between a price-sensitive and a quality-seeking segment is meaningful, since the two segments demonstrate distinguishable sets of needs
      • A company must be able to reach customers within each segment through effective and targeted marketing programs
        • A customer segment consisting of customers with blue eyes is not actionable, since it is very hard to identify and reach only customers with blue eyes
      • Segments must be large and profitable enough to make the investment in serving them worthwhile
        • myCFO.com is targeted towards high net worth individuals, helping them manage their portfolios. Even though the number of those individuals is small, the $ amount managed is sizeable, thus constituting a substantial segment
      • Key characteristics of the segments (e.g., size and spending patterns) must be easy to measure
    Source: Philip Kotler, Marketing Management, 1997 (Chapter 9, page 269) In order for a customer segmentation to be effective, it must be meaningful, actionable, measurable and substantial
  • Table 2-1: Segmentation Approaches
  • Supporting Slide 2-B: Geographic Segmentation — Description
      • Geographic segmentation divides the market into distinct geographical units, such as nations, states or regions
      • In the Internet space, geographic barriers are to a large extent lifted
      • However, there still are many industries where local relationships and distribution channels play a key role, maintaining the need for a local focus
        • Webvan is currently operating in Atlanta, Chicago, Sacramento and San Francisco; entry into new geographical markets will require the building of the necessary home- delivery infrastructure
        • Many construction sites have a local or regional focus, since relationships with local or regional contractors and suppliers are of critical importance
      • Country
      • Region
      • Urban vs. Rural
      • Density
      • Climate
    Description Segmentation Examples Source: Philip Kotler, Marketing Management, 1997 (Chapter 9, page 257)
  • Exhibit 2-9: Schwab — Defining Existing or New Value System Release Trapped Value Create New Value
  • Supporting Slide 2-J: Schwab — Needs-Based Segmentation Source: Jeffrey Veen, Hot Wired Style , Monitor Analysis Schwab’s market segments fall into three categories “ Saving for a Goal”
    • Saving for retirement
    • Saving for college
    • Saving for house down payment
    “ Traders”
    • Hobby investors
    • Active traders
    “ Financial Planning”
    • Estate planners
    • Tax planners
    • Trust fund managers
  • Exhibit 2-11: Schwab — Segmentation (1997 Timeframe) Buy and Hold Current Offline Schwab Customer High Net Worth (<$1M) Married Not Schwab Customer Other White Collar Frequent Trades Single Blue Collar Retiree University Student Children > 30 No Children < 30 Mature ( > 55) C I J K D E A G H F M L N O P B High Priority Secondary Priority Tertiary Priority De-emphasize
  • Exhibit 2-12: Schwab — Competitor Map to Segments Medium performance level High performance level Low performance level
  • Exhibit 2-13: Schwab.com Overall Opportunity Assessment
  • Exhibit 3-1: Components of a Business Model Value Cluster Marketspace Offering Resource System Financial Model
  • Supporting Slide 3-B: Consumer Decision Process — Flower Example Flowers
    • Need recognition, potentially triggered by a holiday, anniversary or everyday events
    • Search for ideas and offerings, including:
      • Available on-line and off-line stores
      • Gift ideas and recommendations
      • Advice on selection style and match
    • Evaluation of alternatives along a number of dimensions, such as price, appeal, availability, etc.
    • Purchase decision
    • Message selection (medium and content)
    • Post-sales support
      • Order tracking
      • Customer service
    • Education on flowers and decoration
    • Post sales perks
    Disposal Loyalty Satisfaction Purchase Decision Evaluation of Alternatives Information Search Problem - Recognition Pre-Purchase Purchase Post-Purchase
  • Exhibit 3-8: Schwab Egg Diagram
    • Schwab Learning Center
    • Live Events
    • Principles of Investing
    • Understanding Market Cycles
    • “ Did You Know” Q&A
    • Schwab Signature Services
    • Schwab AdvisorSource
    • Options Service
    • Global Investing Service
    • Online chat with Customer Service Representatives
    • Customer Service via phone
    • Customer Service via email
    • Customer Service at Branch
    • My Watch List
    • Margin Loans
    • Money Transfers
    • Automatic Investing
    • Options Service
    • After Hours Trading
    • Account Protection
    • Bill Payment
    • Overall
    • General Goal Planner
    • Investor Profile
    • Sample Investment Plans
    • Retirement
    • Retirement Planner
    • IRA Analyzer
    Product Offering On-Line Investment Process
    • Get educated about investing
    • Plan investments
    • Decide on Investment
    • Perform Investment
    • Post Investment Support
    • Perform Research
    • Estate
    • Estate Tax and Probate Calculator
    • Alternatives Comparison
    • College
    • College Planner
    • Tax
    • Tax Strategies
    • IRS Withholding Calculator
    • Overall
    • Quotes and Charts
    • Analyst Center
    • Stocks and Options
    • Stock Analyzer
    • Bonds and Treasuries
    • Schwab BondSource Services
    • CDs and Money Markets
    • SchwabOne
    • Annuities
    • Schwab Select Annuity
    • Life Insurance
    • Insurance Needs Calculator
  • Exhibit 3-9: Schwab Resource System Optimize Staff in Branches Lower Prices Train IT Staff 24x7 Access Media General S&P Hoovers Phone Branch Online Charge For Value Added Services Provide Lower Commission for Frequent Traders Innovative Products Center of Knowledge and Innovation Investment in R&D Cutting Edge Technology Investment in IT System Reliability Multiple Points of Access Hire IT Staff Competitive Commission Rates Streamlined Operations Learning Center = Resources = Capabilities = Core Benefits Superior Service Partnerships with Content Providers Invest in CSR Training Align CSR Compensation with Quality of Service Customer Service Onesource
  • Exhibit 3-10: Schwab Resource System = Company needs to outsource or partner = Company can perform in-house Optimize Staff in Branches Lower Prices Train IT Staff Capable IT Staff 24x7 Access Media General S&P Hoovers Phone Branch Online Charge For Value Added Services Provide Lower Commission for Frequent Traders Innovative Products Center of Knowledge and Innovation Investment in R&D Cutting Edge Technology Investment in IT System Reliability Multiple Points of Access Hire IT Staff Competitive Commission Rates Streamlined Operations Learning Center Superior Service Partnerships with Content Providers Invest in CSR Training Align CSR Compensation with Quality of Service Well-Trained CSRs Onesource
  • Downsized branch staff High quality Investment Information Innovative products Low price Large, well trained sales force Technology Leadership Supporting Slide 3-K: Schwab Activity System Superior service Investment in IT 24 x 7 Customer service Exceptional team of engineers In-house technology development Large investment in R&D System able to handle large volume Increase in trade volume Increase in non-trade revenue Multiple points of access On-line Phone Branch Comprehensive information Partnerships with content providers Hoovers Online S&P Comstock Media General
  • Supporting Slide 3-L: Schwab Value Proposition “ Use technology to offer innovative products and superior service at lower prices to investors unwilling to pay for investment advice”
  • Exhibit 6-4: The Delivery System Needs to Support and Reinforce the Resource System Processes Assets Systems People Source:Christensen, Clayton M. 2000. Meeting the Challenge of Disruptive Change. Harvard Business Review 78, no. 2 (March-April). MAPPING THE RESOURCE SYSTEM DELIVERY SYSTEM Supply Chains
  • Exhibit 6-13: Schwab IT Infrastructure Source: Tempest, Nicole and Warren McFarlan. 1999. Charles Schwab Corporation (A). Case no. 9-300-024, 9 September. Boston: Harvard Business School Publishing.
  • Exhibit 6-14: Timeline for Schwab Innovations
    • Entire trade clearing system brought in-house
    • Equalizer : DOS based product enabling PC users to trade stocks on-line
    • Telebroker : 24x7 quote and order placement by telephone
    • SchwabLink : Service for fee-based financial advisors
    • OneSource : Mutual fund program allowing investors to purchase Schwab and non-Schwab funds free of charge
    • Streetsmar t: Windows-based software allowing on-line trading of equities, bonds and mutual funds
    • October 1995
    • eSchwab : Electronics software package dialing into Schwab system
    • June 1995
    • Advisor Source : Referral service for fee-based advisors
    • March 1996
    • Upgraded eSchwab : First major brokerage firm to offer trading via the Internet
    • September 1997
    • Customized asset allocation tool available on-line
    • October 7, 1997
    • SchwabLink available on the web
    • October 1, 1997
    • First speech recognition service for investors
    • January 27, 1998
    • MoneyLink : Electronic funds transfer service
    • May 14, 1998
    • First U.S. website enabling order placement in Chinese
    • January15, 1998
    • Schwab.com launches
    • January 20, 1998
    • IRA Analyzer launches
    • September 21, 1998
    • CD ROM Tool for retirement setup and monitoring
    • November 23, 1998
    • Web tool to track and benchmark investor performance
    • April 16, 1999
    • New site based on user input
    • April 27, 1999
    • Retirement Planner on-line
    • August 14, 1999
    • Velocity software trading system for active investors
    • September 8, 1999
    • New web tools for investment advisor offering
    • May 24, 1999
    • MySchwab launch
    • August 19, 1999
    • Plans for cross-platform wireless trading
    • November 9, 1999
    • Paperless trading with eConfirms
    • October 20, 1999
    • After Hours trading
    • November 23, 1999
    • Velocity 2.0 launch
    • December 1, 1999
    • Enhanced Analyst Center
    • December 22, 1999
    • New on-line mutual fund tools
    • February 3, 2000
    • Learning Center: Interactive education tool for on-line learning
    • March 7, 2000
    • Schwab and Barclays announce internet-based foreign exchange service
    • March 15, 2000
    • Schwab expands advice offering with Portfolio consultation
    • March 31, 2000
    • Schwab and Dow Jones unveil on-line Chinese news and research service
    • May 7, 2000
    • Stock Analyzer launched, offering third party equity analyst recommendations and earnings projections
  • Exhibit 7-10: Charles Schwab -- Customer Acquisition Stage Step 1: Articulate the Business Strategy “ Use technology to offer innovative products and superior service at lower prices to investors unwilling to pay for investment advice” 1. Value Proposition 2. Marketspace Offering High quality Investment Information Innovative products Low price Technology Leadership Superior service 3. Resource System
    • Schwab Learning Center
    • Live Events
    • Principles of Investing
    • Understanding Market Cycles
    • “ Did You Know” Q&A
    • Schwab Signature Services
    • Schwab AdvisorSource
    • Options Service
    • Global Investing Service
    • Online chat with Customer Service Representatives
    • Customer Service via phone
    • Customer Service via email
    • Customer Service at Branch
    • My Watch List
    • Margin Loans
    • Money Transfers
    • Automatic Investing
    • Options Service
    • After Hours Trading
    • Account Protection
    • Bill Payment
    • Overall
    • General Goal Planner
    • Investor Profile
    • Sample Investment Plans
    • Retirement
    • Retirement Planner
    • IRA Analyzer
    Product Offering On-Line Investment Process
    • Get educated about investing
    • Plan investments
    • Decide on Investment
    • Perform Investment
    • Post Investment Support
    • Perform Research
    • Estate
    • Estate Tax and Probate Calculator
    • Alternatives Comparison
    • College
    • College Planner
    • Tax
    • Tax Strategies
    • IRS Withholding Calculator
    • Overall
    • Quotes and Charts
    • Analyst Center
    • Stocks and Options
    • Stock Analyzer
    • Bonds and Treasuries
    • Schwab BondSource Services
    • CDs and Money Markets
    • SchwabOne
    • Annuities
    • Schwab Select Annuity
    • Life Insurance
    • Insurance Needs Calculator
  • Exhibit 7-11: Schwab Desired Outcome Summary Business Model MARKET OPPORTUNITY
    • Significant Opportunity
    • Financially Attractive Segment
    • Competitively Attractive Segment
    BUSINESS MODEL
    • Value Proposition vs. Competition
    • Offer vs. Competition
    • Capabilities vs. Competition
    • Sustainability of Value Proposition
    CUSTOMER INTERFACE & OUTCOMES
    • Lower Customer Acquisition Costs
    • Transition Customer Base
    • Outperform competition on Interface Perceptions
    • Customer Satisfaction & Loyalty
    IMPLEMENTATION & BRANDING
    • Brand Associations vs. Competition
    • Best-in-class IT Infrastructure
    • Ability to Deliver Brand Promise
    FINANCIAL EVALUATION
    • Revenue
    • Profit
    • Cost
    • Balance Sheet
  • Exhibit 7-12: Charles Schwab -- Customer Acquisition Stage Business Model Implementation & Branding Customer Financial Build brand Increase system uptime Train branch staff Improve customer service Increase customer loyalty Increase profit Optimize cost Increase revenue Invest in technology Increase number of IT staff Increase customer satisfaction Increase usage Acquire new customers Market Opportunity Avoid crowded markets Play in attractive market Target attractive segments Leverage capabilities to deliver offering Provide unique VP Provide attractive offering