Scenarios

Marketing Melee 45%
The hoopla surrounding the launch of Merrill's Web trading forces Schwab and other leading technobrokerages to dial up the intensity of their marketing campaigns. While past TV ads from E*Trade and Discover Brokerage have been more memorable than Schwab's, Schwab remains better positioned to win a protracted air war. Merrill's effective marketing allows the old bull to retain longtime customers, but its move online serves only to grow the entire sector. Schwab's growth continues apace. Early in 2000, the company is adding nearly 175,000 new customer accounts a month.