eTrade 2001 Annual Report Download - page 80

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Spear Leeds & Kellog (a division of Goldman Sachs Group, Inc.)
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TD Waterhouse Group, Inc.
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Transcentive, Inc.
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Wells Fargo & Company
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Yahoo! Inc.
Many of our competitors have longer operating histories and significantly greater financial, technical, marketing and other resources
than we do. In addition, many of our competitors offer a wider range of investment banking, advisory and other financial services and
products than we do, and thus may be able to respond more quickly to new or changing opportunities, technologies and customer
preferences and requirements. Many of our competitors also have greater name recognition and larger customer bases that could be
leveraged, thereby gaining market share from us. These competitors may conduct more extensive promotional activities and offer
better terms and lower prices to customers than we do, possibly even sparking a price war in the online financial services industry.
Moreover, some of our competitors have established cooperative relationships among themselves or with third parties to enhance their
services and products. It is possible that new competitors, alliances or consolidation (as described below) among existing competitors
may significantly reduce our market share or our ability to compete effectively.
Commercial banks and other financial institutions have become more competitive with our brokerage operations by offering their
customers certain corporate and individual financial services traditionally provided by securities firms and more competitive with our
banking operations by offering products electronically. The current trend toward consolidation in the commercial banking industry
could further increase competition in all aspects of our business. While we cannot predict the type and extent of competitive services
that commercial banks and other financial institutions ultimately may offer, we may be harmed by such competition. To the extent our
competitors are able to attract and retain customers, our business or ability to grow could be harmed.
There can be no assurance that we will be able to compete effectively with current or future competitors or that this competition will
not significantly harm our business.
If we do not act or are unable to take advantage of consolidation opportunities in the online financial services industry, we
could be at a competitive disadvantage, or lose our independence
Over the past several years, there has been significant consolidation in the online financial services industry and the consolidation is
likely to continue and even accelerate in the future. Should we fail to take advantage of viable consolidation opportunities we could be
placed at a disadvantage relative to our competitors who have taken appropriate advantage of these opportunities.
71
2002. EDGAR Online, Inc.