[Solution] E*Trade Group was a pioneer in the online trading of securities. It had the largest volume of Internet trades in 1996, but it was handicapped


Question: E*Trade Group was a pioneer in the online trading of securities. It had the largest volume of Internet trades in 1996, but it was handicapped by several problems – just at a time when established brokerage firms like Charles Schwab were also entering Internet trading. What competitive strategy is E*Trade following? Does E*Trade have a sustainable competitive advantage? What should E*Trade Group do, if it wants to continue competing successfully as an online securities trader in the future? Please explain and discuss. [30 points]

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