Charles Schwab & Co. inc. in 1999: a case analysis with a focus on adding value to products and services
A very brief summary of the findings of an equally brief examination of the issue of adding value to services is presented in this paper. While the concepts mentioned in the findings summary have wider applications, the examination, the findings, a summary of which are presented in this paper, are specific to Charles Schwab & Co. Inc., an investment brokerage services firm in the United States. Further, the focus of the examination of Charles Schwab & Co. Inc. was limited to the inclusive period 1971-1999, which was the period covered by Sutherland, DuBois, and Burgelmann, (2000) in a case study of Charles Schwab & Co. Inc.
Approach to the Conduct of the Examination
Four questions relative to the Sutherland, DuBois, and Burgelmann, (2000) case study are addressed in the findings summary. The answers to the four questions were developed through the brief examination of the information presented in the case study. The answers to the four questions are the links between the case study and the issue of adding value to services, as these answers show how Charles Schwab & Co, Inc. added value to the services provided to customers by responding appropriately to change in the investment market environment.
Summary of Findings Related to Question 1
This question concerned the major change (disruption) in the investment market environment that created the initial opportunity that was successfully exploited by Charles Schwab & Co. Inc. This question also concerns the innovative action taken by the Company, tactical steps involving technology, and the reasons for differing responses by the major brokerage houses of the day. The summary answers are as follows:
> The major disruption in the investment market environment occurred in 1975. The change was the partial, but highly relevant,
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