Since early 1997, Vanguard assets under management more than 60% from $ 240 billion to nearly $ 400 billion, making it second in market share only Fidelity. Vanguard sees this success as a further justification of its low-cost strategy of no-load funds, small expense ratios, open client communication, high-quality service and reliable performance. But the organization is also mindful of the unprecedented changes in the financial services industry. Financ … Read more »

Since early 1997, Vanguard assets under management more than 60% from $ 240 billion to nearly $ 400 billion, making it second in market share only Fidelity. Vanguard sees this success as a further justification of its low-cost strategy of no-load funds, small expense ratios, open client communication, high-quality service and reliable performance. But the organization is also mindful of the unprecedented changes in the financial services industry. Financial institutions were rapidly consolidating, with companies such as Citigroup, UBS and Merrill Lynch now holds every customer and other assets of more than a trillion dollars. And technology, especially the Internet dramatically change the production, pricing and supply of financial services. Vanguard has to carefully consider its future, and look back on important decisions such as expanding its product range and provides asset management services in other countries.
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Andre F. Perold
Source: Harvard Business School
24 pages.
Publication Date: Sep 10, 1998. Prod #: 299002-PDF-ENG
Vanguard Group, Inc. – 1998 HBR case solution