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Morgan Stanley Dean Witter – Will the new name bring laurels
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As part of their emerging business strategies, existing companies often strive to rebrand their current operations and attract new customers. Morgan Stanley has attempted to reorient its operations and present a new face. Although it has changed its name so many times, in August 1995, it became one of the first financial institutes to offer the online investment option over the web. For new entrants into commodity trading online operations offer significant advantages.

Morgan Stanley Group, Inc, and Dean Witter, Discover & Co. merged in 1977. After this merger in 1997, the total capital assets of the company are $37.9 billion as on 30 November 1998. In 1999, the company announced that it was going to go online as Morgan Stanley Dean Witter and that it will not run trades through the earlier company, Discover Brokerage Direct, which was dissolved later on.

The positive aspects include,

• It has unlimited transaction history
• It has excellent 24/7 phone customer service
• It offers options for wireless trading, research and selection of Initial Public Offers (IPOs)

However, the following drawbacks have been noticed. They are,

• Its commissions are expensive, so hyperactive traders are disillusioned. The commission rate is $ 29.95 up to 1000 shares and then 3 cent per-share for online trading. For Broker-assisted operations commission rate is $39.95 for up to 1000 shares, then 4 cent-per-share.
• Its e-mail customer service is poor
• Its overall site performance is bad
• Options start at $ 35
• $ 2000 account minimum

As of 19 June 2000, the company’s market capitalization stood at $ 96,308.33 million and there is a wild fluctuation to this figure since the advent of the present economic crisis.
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