Charles Schwab Customer Focused E-Business Strategy|IT and Systems|Case Study|Case Studies

Charles Schwab Customer Focused E-Business Strategy

            
 
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Case Details:

Case Code : ITSY042
Case Length : 17 Pages
Period : 1997-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Charles Schwab
Industry : Financial Services
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Background Note

Charles Schwab (Charles) wanted to be an entrepreneur from a young age. Being dyslexic, he found traditional learning difficult but was good at numbers. Charles began his entrepreneurial career by setting up a walnuts business in the Sacramento valley in central California in the 1940s. Then came chickens at the age of 12...

The Multi-Channel Strategy

Schwab's corporate philosophy was "to provide customers with the most useful and ethical brokerage services in the US." The company equipped customers with the latest stocks related information and assisted them in making trading decisions...

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BRANCH NETWORK

Branch network was the traditional channel of service delivery for Schwab, introduced at its inception. Customers used this network to open brokerage accounts, deliver and receive checks and securities, obtain market information, place orders and obtain related customer services in person...

TELEPHONE AND AUTOMATED CHANNELS
The branch network was well supported by the company's customer contact centres, which could deal with customer queries and transactions including performing trade, providing account status, receiving requests for prospectus and more. Schwab had five customer contact centres in the US...

The E-Business Strategy

In mid-1990s, when the Internet was gradually becoming popular in the US, Schwab realized that it could be used to enhance customer service and consequently expand its business. There were two vital intangible elements in the financial services industry best suited for web interaction - transaction and information...

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