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Case #2: Financial Services Firm

Assignment: Branding and Distribution Strategy

Type: Market Step Change

Situation

• Client’s business had begun to plateau as they achieved market leadership in the discount brokerage market segment and were beginning to lose customers to deep discount brokers and the full service wirehouses.

NECG Insight

• The emerging proliferation of office and home computers and the Internet channel of distribution would dramatically change the way investors transacted business with securities brokerage firms and create a major opportunity for first movers.

Recommended Strategy

• Become an early mover in electronic brokerage on the Internet and position the firm as the financial partner to independent investors rather than a cheap broker for cost conscious investors.

Results/Outcome

• Client was the fastest growing securities brokerage firm in both transactions, assets under management and profits throughout the 1990’s and was named the company of the decade by Forbes magazine.