What is DLJdirect's financial situation?

Display 16 from the document confirmed DLJdirect's cash flow statement via 1994-1999 (in millions). Display 17 showed DLJdirect key financial and operating performance. The income increased steadily from year 1994 to 97. The income increase 50 dollars million over 10 years ago which is equal to 43% enhance. In 1999 the revenue improved about $44 million. The income was stable prior to 1997 if the company knowledgeable a reduction and able to recovered another year in 1998. In 1999, the organization reached the highest income due to huge percentage increase in that year. Total, the company is definitely making very good progress over the years with regular increment of commissions, total trades, typical daily trades, total accounts and total customer assets.

Does DLJdirect have the financial capability to addresses new segments, e. g. to do more advertising to attract new sorts of customers? DLJdirect does have the financial power to address new segments available in the market and increase advertising to draw new customers. However when compared to its competitors, they may be spending additional money on consumer acquisition. For example , E*Trade client acquisition budget was forecasted to be $300 million in 1999. That's fifty percent less than DLJdirect's total cost and expenditures in 1999. For the moment, the company ought to build a stable and reliable reputation available in the market before spending more money in advertising by itself. Identify many ways DLJdirect's trading service is definitely differentiated via competitors Tiered services intended for accounts with high asset balances and speed of execution are definitely the two ways DLJdirect differentiates alone from opponents. Customers with asset equilibrium in excess of hundred buck, 000 are provided with entry to DLJ analysis and higher access to DLK-manages IPOs. Can be who have more in $1,000,000 or more possessions, DLJdirect decreased certain costs, provided your own service team, and presented more trading time. Exhibit 14 beneath shows the DLJdirect advantage in...

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