MicroEconomics of the Charles Schwab Corporation
Final Paper
Tinsley Teague
Tri-County Technical College
Abstract The Charles Schwab Corporation is an American brokerage and banking firm based in San Francisco, California that was founded in 1971 by Charles Schwab as a traditional brokerage firm and investment newsletter publisher. Their mission is to provide customers with the most useful and ethical financial services in the world. Although there aren’t necessarily any production costs in the financial services industry, companies such as Charles Schwab still have expenses to handle. Some of these operating expenses include compensation and benefits for employees, technology and communication expenses, advertising and marketing. Schwab positioned themselves as forward thinkers, evolving with technological advances to offer new products and connection methods to their users. So with the markets in crisis, the company focuses on what it does best – innovating on behalf of clients. Entering the market, Charles Schwab immediately becomes a force to be reckoned with due to their existing name brand and leading position within the overall US financial industry.
Introduction
In the following paper I will describe and illustrate how the Charles Schwab Corporation exists in its …show more content…
There are various kinds of structures including: perfect competition, monopoly, oligopoly, monopolistic competition, and contestable markets. Each of these structures holds different characteristics such as the number of firms, the type of product, any barriers to entry, etc. Charles Schwab could best be categorized as an Oligopoly. An Oligopoly is an industry dominated by a few firms, it has barriers to entry and some of its products or services rather are differentiated from those of its competitors. Firms in Oligopoly are competitive on each other’s pricing, especially if they are seeking to increase their market
Final Paper
Tinsley Teague
Tri-County Technical College
Abstract The Charles Schwab Corporation is an American brokerage and banking firm based in San Francisco, California that was founded in 1971 by Charles Schwab as a traditional brokerage firm and investment newsletter publisher. Their mission is to provide customers with the most useful and ethical financial services in the world. Although there aren’t necessarily any production costs in the financial services industry, companies such as Charles Schwab still have expenses to handle. Some of these operating expenses include compensation and benefits for employees, technology and communication expenses, advertising and marketing. Schwab positioned themselves as forward thinkers, evolving with technological advances to offer new products and connection methods to their users. So with the markets in crisis, the company focuses on what it does best – innovating on behalf of clients. Entering the market, Charles Schwab immediately becomes a force to be reckoned with due to their existing name brand and leading position within the overall US financial industry.
Introduction
In the following paper I will describe and illustrate how the Charles Schwab Corporation exists in its …show more content…
There are various kinds of structures including: perfect competition, monopoly, oligopoly, monopolistic competition, and contestable markets. Each of these structures holds different characteristics such as the number of firms, the type of product, any barriers to entry, etc. Charles Schwab could best be categorized as an Oligopoly. An Oligopoly is an industry dominated by a few firms, it has barriers to entry and some of its products or services rather are differentiated from those of its competitors. Firms in Oligopoly are competitive on each other’s pricing, especially if they are seeking to increase their market