Executive Summary

This memorandum addresses some of the key issues with Edward Jones, which includes the lack of an online presence, possible cannibalization from larger firms, and the inability to manage funds from institutional investors. I conclude that the most effective of all of the theorized strategies would be a combination of Edward Jones’ original business model with an online platform. This plan would allow Edward Jones to stay true to its fundamentals, as well as attract new clientele and provide better service to its existing clients.
Introduction
Edward Jones has become the fourth largest brokerage firm in the United States. By holding on to a fundamental business strategy based on the core concepts of close client relationship and long-term investment focus, Edward Jones was able to offer excellent service and performance. However, with the industry rapidly changing, Edward Jones must evaluate its core values to sustain its competitive advantage but in a manner that will allow them to expand its services, and continue to compete with the top players in the industry.
Key Issues and Problems
When observing Edward Jones Financial, I found three critical issues and problems with the firm. Edward Jones built its business model around creating an environment that would allow entrepreneurs to thrive and run their own businesses to a certain extent. This is what originally led to Edward Jones’ success when the company first started; however, it is also the catalyst for the issues of the firm that were present in 2006. Edward Jones’ three main issues were the cannibalization of its business by bigger firms such as Merrill Lynch, customers leaving Edward Jones to manage their own money via online platforms such as E-Trade (MITR, 2014), and the lack of ability to manage high net worth funds that are typically present with institutional funds such as