Edward Jones: Holding a Competitive Advantage in the Broker Industry Essay

Edward Jones: Holding a Competitive Advantage in the Broker Industry Essay

Length: 2616 words (7.5 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

. If enacted, these proposals could significantly and adversely impact Edward Jones’ partnership's operating costs, its structure, its ability to generate revenue and its overall profitability.
Consolidation in discount brokerage industry raising competitive levels
The company faces intense competition for the clients that it serves and the products and services it offers. There has been significant consolidation as financial institutions with which the company competes have been acquired by or merged into or acquired other firms. For instance, in November 2010, The Charles Schwab Corporation acquired Windward Investment Management, Inc. for $150 million in cash and stock. In June 2009, TD Ameritrade completed the acquisition of thinkorswim Group Inc. thinkorswim is among the fastest growing online brokerage firms and has unique trading and investor education capabilities, particularly for the fastest growing segment of the industry-options trading. So, this acquisition underscores TD AMERITRADE's position as a successful industry consolidator. Consolidation in discount brokerage industry is creating larger rivals to compete with.
Porters Five Forces
Risk of new Entry by Potential Competitors
The threat of online competitors is also present to every discount broker that has not switched to online trading or chooses to remain with their current business model and not offer online services. These online trading sites have unique trading capabilities that otherwise are not present at Edward Jones. They offer sound advice on stocks and other investments instantly. Each customer has to call their Edward Jones advisor in order to place a trade. This makes sense to Edward Jones because they want to help prevent the rash decisio...

... middle of paper ...

... 5 Feb.
2007: 17. Business Source Premier. Web. 1 Apr. 2011.

Hill, Charles W. L., and Gareth R. Jones. Strategic Management Cases: an Integrated Approach.
9th ed. Mason, OH: South-Western/Cengage Learning, 2010. Print.

Markides, Constantinos C. "1." All The Right Moves. Boston: Harvard Business School, 2000. 1-
4. Print.

"Our Core Principles - Edward Jones: Making Sense of Investing." Edward Jones. Web. 12 Apr.

Wind, Jerry Y. "Rethinking Marketing: Peter Drucker's Challenge." Journal of the Academy of
Marketing Science 37.1 (2009): 28-34. Business Source Premier. Web. 1 Apr. 2011.

"Who Should Invest With Us - Edward Jones: Making Sense of Investing." Edward Jones. Web.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Competitive Advantage And Competitive Advantages Essay

- In today’s world virtually all businesses are born into competition. There are situations in which multiple organizations offer similar products, a limited number of firms seek the same consumers, and other organizations offer the exact same product just at a different price or in a different variation. So how do firms attempt to outperform their competitors and sustain profits. They create a competitive advantage. A competitive advantage is a business concept that allows firms to outperform their competition by generating greater sales margins/profits or retaining a larger number of consumers....   [tags: Porter generic strategies, Strategic management]

Term Papers
1119 words (3.2 pages)

Crucial Role of Innovation in Competitive Success Essay

- Innovation has become widely recognized as a key to competitive success (Francis & Bessant, 2005). Scholars are mainly concerned with innovation because of the life requirements and the persistent desire for continuous change to be in accordance with individuals' needs and desires (Badawy, 1993). Developments in all aspects of life are attributed to innovation. Peter Ducker, one of the administration scholars, says that innovation is one of the main forces in economic and social development and a basic tool in the growing, resistance and adaptability of the contemporary organizations with the changing environmental conditions as those organizations with no innovation will shortly remove (Dru...   [tags: Business, Sustainable Competitive Advantage]

Term Papers
2601 words (7.4 pages)

Competitive Advantage For The Competitive Market Essay

- Competitive advantage is the advantage for the competitors and gained by the offerings from the consumers that have the greater value either by the low prices of the products and by providing the benefits and services to the consumers that denotes the high price. It is a set of the innovative and different features of the company and the products and services sale to the consumers so that company can achieve the targets what they have decided and it is the betterment for the enterprise in the competitive market (Porter, 2011)....   [tags: Marketing, Business, Economics, Retailing]

Term Papers
1173 words (3.4 pages)

Business Industry : A Competitive Advantage Essay example

- There are a variety of challenges that firms may face when attempting to be the best in their specified industry. Economic and political challenges can make it difficult for companies to maintain a competitive advantage. In addition to maintaining a competitive advantage, some firms also find difficulty in keeping its branding alive and by attracting customers as their strategies, products, and management change over the course of time. Industries such as the automotive industry, healthcare industry, retail industry, and many more experience a variety of challenges based on their competition....   [tags: Porsche, Automotive industry, Audi, Mercedes-Benz]

Term Papers
809 words (2.3 pages)

Competitive Advantage And Its Pursuit Essay

- Introduction Competitive advantage and its pursuit, for firms, is the cornerstone of Strategic Management. Strategy comes from the Greek word Stratos meaning army and its quest for sustainable competitive advantage is almost militaristic in nature (Fahy, 2000). It is steeped in theories of management and economics. In concepts of developing and using core competencies from collective learnings (Prahlad & Hamel, 1990) to earn economic rents (Amit & Schoemaker, 1993) through the sources deployed to achieve superior financial performance or superior marketplace performance (Bhardawaj, Varadarajan & Fahy, 1993)....   [tags: Strategic management, Management]

Term Papers
1658 words (4.7 pages)

Competitive Advantage Applied For Ccma Essay

- 2.2.2. Competitive advantage applied to CCMA According to the concept discussed of competitive advantage, the level of competence of the market and characteristics of competitors, the CCMA cannot develop a sustainable competitive advantage based on cost, since it does not have any resource or process that gives it an advantage toward this orientation. While differentiation strategy would be a proper choice to obtain a suitable performance. CCMA can achieve differentiation based in some of its intangible resources, which are more difficult to imitate (Hollensen, 2015)....   [tags: Customer, Customer service]

Term Papers
913 words (2.6 pages)

Essay on Airline Sustainable Competitive Advantage

- Porter stated; “for an airline to succeed in the marketplace, it must have a sustainable competitive advantage” (Porter M. E., 2008). The airline industry is the highest competitive industry, and I believe a sustainable completive advantage is essential to succeed in the future of the aviation industry. The competitive advantages that an airline embrace, needs to be based on the airlines strategy and differentiation to competitors. Emirates displays how it has a strategy and how the airline gets ahead of its competitors through how unique it is....   [tags: aviation industry, competitors]

Term Papers
1432 words (4.1 pages)

Competitive Advantage and Developing a Competitive Advantage Over Rivals

- Competitive Advantage and Developing a Competitive Advantage Over Rivals Different Market Structures There are 3 types of markets, one is Perfect Competition, another is Monopoly and lastly there is Oligopoly. Perfect Competition A definition of Perfect Competition is 'it exists when there are so many people in the market, and other conditions are such, that noone can influence the price, all other things being equal.' (BPP Business Organisations, Competition and Environment Chapter 4 Page 105) Perfect competition is very rare and it is so competitive that any individual buyer or seller has only a slight impact on the market price....   [tags: Papers]

Free Essays
2603 words (7.4 pages)

Porter's Diamond Of Competitive Advantage Essay

- Introduction Since its publication in 1990, Michael Porter's book The Competitive Advantage of Nations has attracted much consideration. The main analytical tool of the book is the diamond of competitive advantage (figure 1). This model is based on four country specific "determinants" and two external variables. Porter's four determinants and two outside forces interact in a "diamond" of competitive advantage, with the nature of a country's international competitiveness depending upon the type and quality of these interactions....   [tags: Business Economics]

Free Essays
1584 words (4.5 pages)

Competitive Advantage Essay

- Corporate Strategy "Sources of competitive advantage rarely yield added value that can be sustained over time." The following essay is going to attempt to assess the above proposition and try to find if it is possible to add value continually over a period of time. I will first discuss what competitive advantage is and what it means to a firm. Then I will explain the sources of competitive advantage and how the distinctive capabilities of a firm allow it to sustain added value. The discussion is based on a number of viewpoints from different authors who will be clearly indicated and acknowledged....   [tags: essays research papers fc]

Term Papers
2183 words (6.2 pages)