Stock Trading with ZERO commission? SWOT Analysis of Robinhood App

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What is the RobinHood?
Robinhood is a stock brokerage that allows customers to buy and sell U.S. listed stocks and ETFs with zero commission. They believe that everyone should have access to the financial markets and are on a mission to inspire a new generation of investors.

What are RobinHood’s strengths?
• They are young and fast. Investing in the stock market is “old school.” RobinHood is directly focusing “Millennials.” Independent Millennials’ tend to adopt new technologies and innovative things.
• Investing in the stock market seems expensive and hard for many people. RobinHood’s mission is to break it up. They don’t charge anything for any trade, so a lot of no-experience people want to use their app. In this way, they are growing fast and opening a new way to “old school” investing mindset.
• Their competitors are timeworn and powerful, but they don’t do anything generally for millennial but this and next four decades’ owner is millennials.

What are RobinHood’s weaknesses?
• RobinHood is a startup company. They raised around 66 million dollars from venture capital firms. But their scope needs more money to survive and grow. They have to clarify their revenue models.
• They want to change investing mindset. They focus independent millennials investors on increasing but real investors, who are investment million dollars daily, are still on Wall Street. They have to suffer some ‘’old school real investors” for their B plan to survive.

What are RobinHood’s opportunities and threats?
• We are living tech age, and everything becomes “mobile first.” RobinHood provides zero commission investing by using their modern and minimal mobile app. It is critical for “mobile first” new world.
• Many people want to become investors; they have money, but they can’t be an investor because of old mindset. RobinHood tries to change old school mindset to the new one. If they survive during the changing mindset, they can start to a new age of investing behaviors.
• RobinHood is using its investment for growing. But if their investors stop to believe their business model and invest in a company, they can fail. They have to clarify their revenue models.
• Their competitors are old and slow, but they have a lot of money for the competition. RobinHood’s opponent can try to focus RobinHood’s potential customer with the same strategy. RobinHood should be fast, and they should be innovative every time.

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