Edward Jones Case

735 Words3 Pages
1. Where in the value chain does Edward Jones provide value? Prepare a supporting analysis. Edward Jones is a company that brings value to its customers in many different ways. From the time of the inception of the company, Edward Jones has maintained its focus on the relationship with the customer, the markets in which it operates and on the product segments they choose to operate in. Because the company has remained steadfast in its commitment to these segments, they can concentrate their efforts and resources toward these segments in order to maximize the penetration within and the profitability from these segments. Some of the key factors that helps Edward Jones bring value within the value chain are: Their focus on operating in markets with little to no competition. Edward Jones began its operations by opening branches in rural areas. Even when they began to expand more rapidly, they chose to open branches in places that were more urban, but still had little competition. Usually, the new locations would only be in direct competition with only the small local bank branches who were not even offering brokerage services. They also looked to open branches in high traffic areas such as shopping malls. Edward Jones brought value to potential customers by being accessible to the common person. Edward Jones also focused on catering to all customer segments, especially the smaller customers. Edward Jones never deviated from its product strategy or tried to differentiate its offerings to customers based on the amount of money a customer had to invest. Edward Jones brings additional value to its customers by making it well known that they work for the end-customer. Unlike many other brokerage firms that focus on high net-worth clients, Edward Jones faces limited competition in the smaller client segment. This allows them to serve many more customers and

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