Charles Schwab & Co. Inc. (B): In 2003

This case examines the challenges and opportunities facing Charles Schwab in 2003. The company is a leading brokerage, but the entire industry has been in a severe downturn over the past few years. Schwab made its name as a discount brokerage and grew tremendously in the 1990s, largely as a result of its successful embrace of Internet technologies and efficient customer service and transaction processing. Now competing with the likes of established brokerage houses such as Merrill Lynch, and amidst a severe downturn in trading volume, the company is looking for other avenues of growth. This case focuses on Schwab’s efforts to extend its business model to financial advisors.