Securities Brokerages
Competitive Landscape
Demand is driven by the returns of securities markets relative to alternative investments. The profitability of individual companies depends on efficient operations and good marketing. Large companies have economies of scale in operations and high name recognition. Small companies can compete effectively by offering better customer service. The industry is capital-intensive; average annual revenue per employee is more than $500,000.
Opportunities
Retail Internet Trading - Many brokers have developed elaborate Internet sites that allow their retail customers to trade stocks, mutual funds, and other securities directly. Brokers like E*TRADE and...
Business Challenges
Exposure to Economic Conditions - Industry profitability depends on transaction volume and the size of customer accounts, both of which can rapidly change. In recent years, a high proportion of...