TradeRepublic

: a case study on crisis management and internationalization strategies

Abstract

The last decade has been challenging for traditional savers, as interest rates have been meager, making it almost impossible to benefit from compound interest on regular savings accounts. At the same time, poverty among pensioners in Europe has been increasing. Amid the Covid-19 pandemic, so-called neobrokers emerged and disrupted the broker industry by offering the average person simplified and affordable access to capital markets. This case study focuses on TradeRepublic, a German-based neobroker that has recently expanded its business operationsto multiple European countries. This case study intends to broaden knowledge on adaptive strategies in crisis by analyzing the firm's response to challenging situations. It provides a basis for the application of management frameworks from the field of entrepreneurship, organizational behavior, and strategic management. The key events being analyzed are the scandal surrounding the Gamestop short squeeze in 2021 and TradeRepublic’s internationalization strategy, concluding in possible causes for an underwhelming performance in southern European countries, especially Portugal. Julian Collin, the Chief of Staff at TradeRepublic, has kindly provided the information for this case study. The main findings regarding the Games top incident highlight the importance of procedural fairness when communicating difficult news. In terms of international performance, it has been found that cultural dissimilarities might negatively affect TradeRepublic’s performance in Portugal and that economic factors, particularly a lower income level, are likely the primary cause forunderperformance in Portugal.

Date of Award	3 Jul 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Ricardo Reis (Supervisor)