TD Waterhouse discount brokerage: a competitive strategy

This paper provides a strategic analysis of TD Waterhouse (TDW), the discount brokerage provider within TD Bank Financial Group (TDBFG). Discount brokerage in Canada is an increasingly lucrative industry and contributes significantly to the bottom lines of every major financial institution in the country. It is also a rapidly changing and intensely price-competitive industry in which an explicit, educated business strategy is of the utmost importance. TDW currently employs a somewhat ambiguous, "mixed" strategy based on focus and low-cost. The company needs to clarify this approach if it hopes to remain competitive and profitable in the future. There are five clear strategic alternatives available to the firm. These fall into three categories: overall cost leadership, differentiation and focus. Industry and organizational analyses clearly demonstrate that the strategy best-suited to TDW with respect to its values and competitive strengths is one of differentiation through customer service.