Strengths
? Mutual fund industry growth leader
? Growing at 30% per year
? Lowest average expense ratio
? 74% of funds earned above average returns (2001)
? Added 800k shareholders accounts (2001)
? Spent $.20 of every $10,000 invested to drum up new business
? Very low employee turnover
? Effectively utilize dashboards to interrogate and integrate real time metrics into staff meetings
? Ability to retain customers and obtain additional investments
Weaknesses
? $50 billion in assets leave Vanguard every year
? Net cash flow decreased from 46 to 40 billion from 2001 to 2002
? Redemption rates rose 2% (2000)
? Marketing research measures were qualitative and not quantitative
? Most brokerage firms do not recommend Vanguard funds to their clients to do lack of sales commissions
Opportunities
? Appeal to clients by emphasizing "speed, low expense ratio"
? Pick up 1/3 of any increase in mutual fund assets
? Over 40% of customer transactions were conducted on the internet, increasing cost efficiency (2001)
? Top name in mass-marketed industry despite extremely low advertising spending
? Commissioned major client segmentation study to market more effectively to existing customers (2003)
? Increase amount of data collected on customers to market more effectively to existing and new customers
? Increase brand awareness
? International expansion Threats
? Must attract new business every year to compensate $50 billion loss
? Business must continue to change/adapt to the evolving socio-economic cycle to remain competitive
? Short term investors looking for a quick return
? Cross-over, and Roll-over clients withdrawing large sums of money and re-investing with other financial institutes
? Poor Index/Stock market performance
? Aggressive competition
? International expansion into low populated countries
? Institutional and regulatory barriers displayed 300 characters
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Strengths
? Mutual fund industry growth leader
? Growing at 30% per year
? Lowest average expense ratio
? 74% of funds earned above average returns (2001)
? Added 800k shareholders accounts (2001)
? Spent $.20 of every $10,000 invested to drum up new business
? Very low employee turnover
? Effectively utilize dashboards to interrogate and integrate real time metrics into staff meetings
? Ability to retain customers and obtain additional investments
Weaknesses
? $50 billion in assets leave Vanguard every year
? Net cash flow decreased from 46 to 40 billion from 2001 to 2002
? Redemption rates rose 2% (2000)
? Marketing research measures were qualitative and not quantitative
? Most brokerage firms do not recommend Vanguard funds to their clients to do lack of sales commissions
Opportunities
? Appeal to clients by emphasizing "speed, low expense ratio"
? Pick up 1/3 of any increase in mutual fund assets
? Over 40% of customer transactions were conducted on the internet, increasing cost efficiency (2001)
? Top name in mass-marketed industry despite extremely low advertising spending
? Commissioned major client segmentation study to market more effectively to existing customers (2003)
? Increase amount of data collected on customers to market more effectively to existing and new customers
? Increase brand awareness
? International expansion Threats
? Must attract new business every year to compensate $50 billion loss
? Business must continue to change/adapt to the evolving socio-economic cycle to remain competitive
? Short term investors looking for a quick return
? Cross-over, and Roll-over clients withdrawing large sums of money and re-investing with other financial institutes
? Poor Index/Stock market performance
? Aggressive competition
? International expansion into low populated countries
? Institutional and regulatory barriers displayed 300 characters
