Strength and threat strategies take the company’s strengths to avoid or try to reduce the impact made by external threats as much as possible. For ST strategy, I suggest E*Trade to expand or strengthen the relations with other companies. Recently, global economic recession grows as the most threat in the business field. However, it does not mean that all chances are gone. Combining together other companies can create stronger financials and new opportunities. It is not restricted within domestic companies; combining with foreign companies also can be new chance.
Moreover, cooperating with foreign companies may be better chance than domestic, because E*Trade, the company working within the internet and phone, has positive possibilities of quick response toward customers or partners and of relatively wide chance to expand in its field, especially in these days when the strength of the internet is steadily increasing. With weakness opportunity strategies the company should want to aim at improving internal weakness by taking advantage of the external opportunities.
Because of current recession and negative business trend as weaknesses, E*Trade is reducing its staff and workers to secure the budgets. I suggest to allow those secured budget to expand E*Trade’s international business, so E*Trade can concentrate on more possible chance, global trade. Weakness and threat strategies are defense tactics that are directed towards reducing the internal weaknesses that a company may have and to avoid external threats of the economy.
With recent economic recession as the most threat, E*Trade may compensate its weak finances by cutting back on unnecessary expenses and reducing staff and workers. It is good method to strengthen internally and increase possible fund if the company cannot earn enough money externally. Recommendation In last 2 years, E*Trade showed negative business trend due to current worldwide economic recession. However, this recession also can be a chance to investors to invest into financial resources that have good possibilities to develop in the future.
As a financial service company, E*Trade can grab chances out of this hardship. Among the alternative strategies that I aforementioned, I recommend expanding global markets strategy and economizing the expense strategy mostly. In current situation, expanding global market strategy has the biggest possibility to develop E*Trade’s business above all other strategies, upon its strength of growing electronic financial services market and E*Trade’s past positive result in international market.
On the other hand, economizing unnecessary expenses actively will help to maintain the firm though current bad finances. E*Trade’s marks negative business trend due to current recession. Nevertheless, E*Trade still shows its strengths and potentials to develop in the future. It is not difficult to say that E*Trade has solid backbone in its field, and will develop when economy is restored.