Boosted by deregulation in 1975, the brokerage industry has tremendously changed. Before, the full service brokers used to supply their investors who are mostly rich professionals with brokering services, financial advices and access to privileged information. Information technology has helped the market to grow rapidly to a wider base of customers, and there are more new players such as discount broking, information only firms joining in this market. Because of the Internet, the access to the information is much easier. People prefer to buy directly some shares on Schwab.com rather than to choose a tradition

Charles Schwab Corporation's ability to successfully leverage IT and introduce innovations that have transformed the brokerage industry from the firm's early focus on providing investors low-cost execution services. Furthermore, they offered expanded brokerage services to select customers through multiple channels. Schwab purchased U.S. Trust (a New York-based money management firm that catered to the wealthiest Americans), and participated in the distribution of Initial Public Offerings through its partnership with Credit Suisse First Boston, J.P. Morgan and Hambrecht & Quist in 1997. In this case the authors also describe how Schwab faced the challenge of the Internet, launched a Web-trading service in March 1996 for e.Schwab customers and then extended the service to all customers beginning January 1998. Three aspects of Schwab's IT capability are described: the structure of the IT organization (called the Schwab IT Enterprise, or SITE), the partnership between SITE and Schwab's business units, and the company's IT infrastructure.

Schwab benefits from a good brand image and the company knows that its financial performance makes Schwab the leader of the online broking market which is its first source of revenues and allows it to develop its operations abroad. Its range of products is really important and its technology is a strong competitive advantage. Nevertheless, its market share on the online market is decreasing as new entrant get in the market. This phenomenon is due to the entry barriers are low and the profits¡

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