Abstract This paper discusses the retail brokerage industry and how it has changed over the past few decades due to technological advancement and the eruption of online e-trading. This paper examines and compares the traditional brokerage firm to the discount firm to e-trading. The writer discusses how traditional investment firms will compete. Porter's Five Forces model is used in this article to critically assess the investment industry.
From the Paper "With increased globalization, companies need to conduct continuous analysis in order to develop strategies to address the contemporary condition of competitive markets. Industry analysis is necessary to determine the forces of competition. The retail brokerage industry has experienced a number of changes in recent times, particularly due to the shift in consumer behavior from using traditional full service brokerages to discount firms to online investing through e-trading. For this industry, analysis will be conducted in an effort to determine who has the power, the customers or the suppliers? Competitive forces provide buyers or suppliers with an advantage in terms of who holds the bargaining power."
Abstract This paper discusses how e-commerce has contributed to the retail brokerage industry by becoming more global and more contestable. It also looks at how actual and potential competition has been significantly increased by the spread of e-commerce at all stages of the industry.
From the Paper "With the spread of globalization and increased competition among firms, E-commerce has contributed to the shift in the paradigm of the retail brokerage industry due to changes in consumer behaviour as a result from utilizing traditional full service firms, to discount brokerages to investing online."
Abstract This paper discusses the retail brokerage industry and how the Internet and e-Commerce has impacted the investment market. Porter's five forces analysis is used to determine industry rivalry, bargaining power of suppliers and buyers, threat of substitute, etc.. The paper includes a strategic map of the industry in terms of where the market players are positioned.
From the Paper "The dynamic nature of the retail brokerage industry is constantly changing due to fluctuations in the economy, globalization, and advanced technology (i.e. Internet). In the 21^st century, the retail brokerage industry has experienced dramatic changes in order to meet and exceed the demands of consumers by developing online accessibility to corporate and trade information. In recent times, this industry has been hit hard due to investment scandals publicized by the media."
Abstract It is the Internet that has spurred the enormous growth of discount brokerage in the post 1995 period. The Internet is the lifeblood of the discount brokerage and its existence is almost wholly dependent on the ability of the Internet to reach and effectively serve, the armchair global investor. Accordingly, the future shape of the Internet will determine the success or failure of the discount brokerage. To a lesser degree, the discount brokerage will determine the future shape of the Internet, at least in terms of its application to financial services.
Abstract This paper will look at the full service brokerages and the increased competition that it faces. Some of the topics discussed in the paper are, comparing full-service and discount brokerages, trends in the brokerage industry, and prospects for the industry.
Abstract This paper evaluates the discount brokerage in terms of Porter's 'Five Forces Analysis. This author reviews job attitudes and job equity for both the manager and broker at a typical discount brokerage firm.
Abstract Analysis of the retail financial securities brokerage industry in the U.S. Major transition of the retail segment of the investment banking business. Impact of Information Technology (IT) and other sources of change. How sweeping change will affect the industry. History of the industry; trading; business challenges; competition. Consumer demand. Financial concern. Financial regulatory system. Risk. Ethical concerns.
From the Paper "RETAIL BROKERAGE INDUSTRY: AN ANALYSIS
Introduction
This research develops an analysis of the retail financial securities brokerage industry in the United States. As is true for many industries in the contemporary period, the retail segment of the investment banking business finds itself in the midst of a major transition in the way in which the industry conducts its business. Many of the changes that are occurring in the industry derive from the ways in which advances in information technology (IT) are affecting the industry. There are, however, other important sources of change that are affecting the industry. Foremost among these other sources of change is government. To be more specific, this source of change involves the elimination of laws and regulations that, in the past ..."
Abstract This paper asks if the retail financial securities brokerage will survive past 2010 and answers "yes" but with the qualification that the industry will become segmented. The author believes that the full-service brokers will serve primarily wealthy customers and the online brokers will serve the cost-conscious lower income investors. The author recommendations that on-line brokers be trained to service adequately personnel accounts and to adopt meaningful ethics policies and that full-service brokers redefine their target markets and realign their strategy to address these markets.
Table of Contents
Introduction
Description and History of the Industry
Business Challenges
Competition
Marketing and Customer Demand
Financial
Human Resources
Technology
Legal/Regulatory/Political
Ethical
Other
Industry Responses, Strategies, and Solutions
Recommendations and Conclusions
From the Paper "Informal trading in the shares of limited liability companies began in Britain's American Colonies around 1725, five years after the South Sea Bubble. This trading grew out of an auction market that had developed at the foot of Wall Street in New York City. The auction market dealt extensively in commodities, particularly wheat and tobacco. The trading of financial securities was slowly introduced into the auction market."
This paper examines the professional career and leadership style of Wall Street revolutionary Charles Merrill, co-founder of the Merrill-Lynch brokerage firm.
Abstract The writer of this paper details the numerous accomplishments of Charles Merrill, co-founder of the Wall Street brokerage firm Merrill-Lynch. This paper analyzes Merrill's leadership style and vision as the first stockbroker who made it possible for average, individual investors to enter the U.S. stock market, a venue previously available to only rich investors and corporations. The writer contends and explains how Merrill reached out beyond the typical investor, to those not familiar with Wall Street, which resulted in not only attracting new investors, but retaining them as well. This paper also delves into the reasons Merrill is still a leader on Wall Street.
From the Paper "Charles Merrill was a revolutionary, who changed the way an entire industry did business. Charles Merrill has an overall vision, a revolutionary one at that, of democratizing Wall Street for the average American investor. This, however, was not just a vague, overall vision, but instead a logical, detailed, and methodical plan to actually make it happen. Perhaps from his own humble origins, and perhaps from having "been there" himself, and risen to the investor class from nowhere, Charles Merrill was thus able to enter into the mindset of the average, American would-be Wall Street investor. From that perspective, then, Merrill was able to sell such a person on the idea of stock market investing."
Abstract The IT changes in the discount brokerage industry have been enormous over the 1995-1999 period. In response to this rapid technological advancement, the number of discount brokerages has multiplied with several hundred now active in the market. Investors are becoming increasingly price conscious and there is great pressure on technology to reduce transactions costs and the time it takes for investor's bids to reach the trading floor. Those with the most advanced technology will dominate the market. Information technology, therefore, is perhaps the most critical success factor and, more than this, it is guiding the development of the entire brokerage industry. This study takes a Work Centered Analysis (WCA) approach to the key IT changes made over the 1995-1999 period.
Abstract This paper is an in-depth analysis of online company "E*Trade", covering topics such as: recent strategic acquisitions / alliances, average customer characteristics, 1998 market share for retail brokerage accounts, market share of online equity trades, cost structure of brokers, comparison of products and services offered by the leading online brokerages, SWOT Analysis Matrix.
From the Paper "Founded as a service bureau in 1982 by Bill Porter, a physicist and E*Trade provided online quote and trading services to Fidelity, Charles Schwab, and Quick and Reilly. This led Bill Porter to wonder why individual investors had to pay a broker hundreds of dollars for stock transactions. With incredible foresight, he saw the solution at hand. He envisioned that someday everyone would own computers and invest through them with unprecedented efficiency and control. It would take years for the investment world to catch up with Bill's vision. In 1992, E*Trade Securities, Inc., one of the original all-electronic brokerages, was born and began offering online investing services through America Online and CompuServe. With the launch of the Palo Alto, California based www.etrade.com company in 1996, demand for E*Trade services exploded."
Abstract While the overall effects of the Internet are still unfolding, making it impossible to draw any definitive conclusions, clear trends have, nevertheless, emerged in certain industries. Banks and brokerage firms are two areas where especially strong changes have already taken place. This brief study will take a close look at the major consequences the Internet has had in these two industries.
Abstract From the perspective of a registered principal at a leading brokerage firm, this paper explains what is required in order to effectively take charge of the firm's customers and oversee operations processes. Some of the requirements discussed are implementation strategies, awareness of the tasks and activities performed in the organization, supplying proper service to customers, and an awareness of the needs of the employees. In discussing these aspects, the paper promotes a more participative style of leadership over a dictatorial style as a key to successful management..
From the Paper "The first step in managing any organization is to know how to implement the strategies that the management wishes to implement. If these are implemented according to plan then the management knows exactly which direction the organization is going in. For this to take place there has to be an unlimited amount of coordination that helps to bring in news of advantages and disadvantages that the organization may be at."
Tags: functioning, managing, operations, overseer, supervise, organized, service
Abstract This paper attempts to illustrate the effectiveness and importance of participative management in a brokerage firm. The paper begins with an overview of participative management. Next, on the basis of this overview, a discussion is offered as to how management can utilize skills based on participative management in order to maximize the efficiency of the team. The discussion also covers strategies that can be implemented to incorporate participative management into management's daily routine. Finally, a discussion is provided as to why participative management is so important for the success of the team and the larger organization.
From the Paper "A number of factors have been identified as influential in helping to insure that positive outcomes occur when participative management is used. Hermel (1990) emphasized that characteristics associated with the organization may either operate to help facilitate or restrain efforts to use participative management. First, the organizational environment must be one that is supportive of efforts to implement the model. Secondly, the culture of the organization must be such that participative management can be blended with strategy to bring about desired outcomes."
Abstract This paper presents a detailed marketing plan for a new financial service company called On-Line Analyst, Inc. The paper explains that the company is a combination database management company that also specializes in the financial services markets. The paper claims that the company will offer a plethora of information, data and financial based market services such as on-line real time market segment analysis, brokerage services and information 'black box' management for the data industries clients. The paper assesses that this plan therefore serves as an evaluation and summary of the organization's marketing and business processing options. The paper contends that On-Line Analyst, Inc. will utilize this foundation document to design, implement and integrate the company's new series of business products and services into a viable consumer and sales blueprint.
Table of Content
Executive Summary
Introduction
Mission and Business Objective
Products and Services
Keys to Success
Macro Environment
SWOT
Economic Value Added
Cash Value Added
Cash Flow Return on Investment
Conclusion
References
Appendix A
From the Paper "On-Line Analyst, Inc. is an organization that takes advantage of existing market analysis and brokerage industry shortcomings. These market segments are currently in a precarious position where they are offering products and services in a climate that has historically been pretty successful but may be at a tuning point. Technology and various legal and regulatory aspects of the industry have changed. The future of the industry will be with companies that can take advantage of the new 24/7 "McDonald's Drive-Up Window" attitude to financial services and data management. The new economic, cultural and business global spectrum entail that it is always time to bank, invest or gather data somewhere in the world. On-Line Analyst, Inc. and the internet will make this new line of reasoning pay off."
