An Analysis of E-trade

1621 Words7 Pages
An Analysis of E-trade Provider of online investing services. It has established a popular, branded destination Web site for self-directed investors. It offers automated order placement and execution, along with a suite of products that can be personalized. (Dow Jones Interactive) As of September 30, 1999, Etrade had 1,551,000 active brokerage accounts, up 185% for the year, with assets held in customer brokerage accounts in excess of $28.4 billion, up 154% from last year. We began offering online investing services through the Internet in February 1996, and it has been our most rapidly growing channel, with transactions over the Internet and through online service providers representing more than 90% of our fourth quarter 1999 transaction volume. (10K report) Strategies used to gain new accounts The extremely strong gains in new brokerage accounts, transactions and assets represent the success of our strategy to become the branded, global leader and recognized authority in electronic personal financial services. This strategy involves: . *leveraging the powerful brand of E*TRADE to increase new customer accounts and assets held in customer accounts by offering a unique and compelling online experience; *providing the broadest range of high value-added tools, products and services; *enabling "anytime, anywhere, anyway" access, worldwide, to actionable information; and *integrating a broad-based digital financial media strategy with existing product and service offerings (10 K report) Growth Strategies expanding global coverage by launching new sites in four additional countries (France, Sweden, the UK, and Japan) to complement our existing coverage in Australia, New Zealand and Canada; the acquisition of TIR in August 1999; and in January 2000, the acquisition of Telebanc. TIR is active in equity, fixed income, currency and derivatives markets in over 35 countries, and holds seats on multiple stock exchanges around the world. Telebanc is the parent of Telebank, an Internet-based, federally chartered savings bank, offering a wide range of Federal Deposit Insurance Corporation ("FDIC")-insured and other banking products and services. Strategic Relationships We pursue strategic relationships to increase our access to online consumers, to build brand name recognition and to expand the products and services we can provide to o... ... middle of paper ... ..., our business or ability to grow could be adversely affected. In many instances, we are competing with such organizations for the same customers. In addition, competition among financial services firms exists for experienced technical and other personnel. Compare the company to some competitors. Compare to Ameritrade Inc and Charles Schwab & Co., Inc. and Merrill Lynch Income Sales Net Income Sales $ millions 97 98 99 EGRP 157.6 285 662.3 AMTD 95.6 164.1 315.3 SCH 2845.2 3388.1 4713.2 MER 31731 35853 34879 Revenue Growth Company EGRP 192.84% AMTD 117.59% SCH 39.11% MER -2.72%
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