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D CSC 13
D CSC 13
SUBJECT ISM II TERM III Prof. Sanjog Ray January 20, 2014 Submitted by, Group 13 Section D VIKRANT KATKE (2013PGP183) DEEPTI KAUSHAL (2013PGP121) SHNEHA (2013PGP379) NILANJAN MOHAN (2013PGP253) SHRINIVAS BHAKER (2013PGP098) SOUMEN MUKHERKEE (2013PGP398)
Problem statement
e.Schwab service curtailed the level of services to customers, for example, they were allowed only one free call per month. Schwabs employees could not service e.Schwab customer due to unavailability of account information Schwabs existing brand name was causing a confusion with e.Schwab amongst customers
IT Implementation considerations
Uniform pricing for a standard online product should be adopted but after certain considerations
Due to its legacy commission charging system, there was no flexibility to charge multiple commission rates across businesses. Until this system was upgraded, the projected earnings shortfall from the new system could not be offset CSC should speed up its process of upgrading the system and only then should uniform pricing be adopted to offset the earnings hit by adjusting commission rates in other businesses The uniform pricing strategy will lead to an immense increase in no. of accounts which will require an increase in IT infrastructure and capabilities. Upgrading the system before such expansion is necessary to avoid
Merrill Lynch the late entrant in the online trading services market? Did they do the right thing?
As a financial services company, Merrill Lynch had a specific business strategy, catering to a different niche customer segment that had mature customers with high net worth who wanted better advisory and allied financial services. Hence, the target audience for online trading business was not the same as the bulk of customers being catered by Merrill Lynch The firm earns high customer loyalty by providing more personalized consulting and financial advisory services Profit margins are low in online service and given its high cost structure, online trading did not seem lucrative Online system/business could cannibalize existing businesses In the 1997-98s, the online trading medium was new and still developing. So, the target customer base was quite small compared to their existing base Given the brand equity and market position enjoyed by Merrill Lynch, there was no immediate need for it to venture into the online trading business. In such a scenario. It made more sense to wait out and prudently weigh all options