Huifeng Chen HW 15 1. How does Schwab succeed in keeping costs down? What strategic moves does the firm make? What special competencies does Schwab cultivate? They keep their low cost strategy by cut the number of employees and slashed expense. Then commit to charge less to their clients. So they can have more business. And rely on independent financial advisers. 2. What should Merrill Lynch do to better compete against Schwab -- imitate Schwab or not? Why? Yes, he should imitate Schwab. If he doesn’t do so he will keep losing business. Cause Schwab has changed the rule of the game. 3. Do you think that Acorns' business-level strategy is an effective one? Why? Yes, I think so. Because according to the article, “Acorns has grown from around 220,000 accounts to more than five million, though only about half of those customers are actively saving and investing.” Plus we even see many potential on the retirement accounts.