Case | HBS Case Collection | May 2004 (Revised April 2005)

Prudential Securities

by Boris Groysberg, Paul M. Healy and Amanda Cowen

Abstract

Prudential Insurance Co. attempted to diversify into financial services by building an investment banking franchise. Prudential's initial foray into the industry was its acquisition of The Bache Group in 1982. In 2000, the company decided to exit investment banking. The firm adopted various strategic positions and human resource management strategies during the 18 years it struggled to compete successfully against prestigious incumbents. Although Prudential's efforts to establish a top-tier investment bank ultimately failed, other firms did succeed in this endeavor.

Keywords: Investment Banking; Corporate Strategy; Competitive Strategy; Market Entry and Exit; Diversification; Mergers and Acquisitions; Financial Services Industry; Insurance Industry;

Citation:

Groysberg, Boris, Paul M. Healy, and Amanda Cowen. "Prudential Securities." Harvard Business School Case 104-008, May 2004. (Revised April 2005.)