Competing in Online Markets: Financial Services as a Case in Point

Online markets have evolved to harbour not only pure online firms, but are increasingly viewed as another trading avenue for traditional companies. Competition in this domain has revolutionized traditional business models. Using financial services as a case in point, this paper proposes five strategic issues and their broad managerial implications. These include the realization of the online market, adopting pricing strategies, expanding and improving services, marketing, and strategic alliances and acquisitions. More importantly, this paper acknowledges that cutting-edge technology might not be the key to success in online markets – managers must recognize that corporate culture, organization adaptation, and product and service innovations are crucial to survival and growth.