online trading

Topics: Stock market, Stock, Stock broker Pages: 9 (1369 words) Published: September 5, 2014
1.4 SWOT Analysis

A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

1.4.1 STRENGTHS

1. Services

As a product Sharekhan is a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.

1. Distribution Network

Sharekhan with almost 250 branches spread across 123 cities beefed up by comprehensive online research, advice and transaction services. In near future expect to make 200000+ retail customers being serviced through centralized call centre / web solution, 60 branches/semi branches servicing affluent/aggressive traders through highly skilled financial 14 advisors, 250 independent investment managers/franchisees servicing 50000 highly valued clients, strong advisory role through Fundamental & technical research and new initiatives are being made in Portfolio Management Services & Commodities trading. 3. Marketing

Sharekhan is a product of SSKI, a veteran equities solutions company with over decades of experience in the Indian stock markets. Sharekhan does not claim expertise in too many things. Share khan’s expertise lies in stocks and that's what it talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets.

4. Products
Company’s product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the loopholes of all the products offered by the other competitors like low cost, user-friendly online trading services etc.

1.4.2 WEAKNESS

1. Customer Satisfaction
As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking houses catering to heavy investors or small segment of the market can afford to and does provide relationship managers for their customers, who can understand the trading needs of individual customers, and advise accordingly. However, a broking house like Sharekhan, which caters to the mass segment, is in no position to provide relationship managers for individual customers.

2. Branding
Though the company has a efficient products but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one 15 begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders

3. Competition from banks
Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly...
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