Scenario - SS.com
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-Swift Stock is following which strategy, according to Porter, through the .com subsidiary?
A) Stability
B) Cost leadership
C) Focus
D) Differentiation
E) Retrenchment

Question

Scenario - SS.com
 Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an on-line stock investment and trading subsidiary, SS.com, where investors can trade stocks at the lowest rates in the industry. The .com subsidiary has less than one percent market share but it faces a very high business growth rate. In the brokerage industry the competition is fierce and all players are cutting their on-line commission rates.
-Swift Stock is following which strategy, according to Porter, through the .com subsidiary?
A) Stability
B) Cost leadership
C) Focus
D) Differentiation
E) Retrenchment

Quizplus · Accepted Answer

Swift Stocks, Inc., through the establishment of its online stock investment and trading subsidiary SS.com, is employing a cost leadership strategy. This is evident in the announcement that it offers the lowest rates in the industry, which is a clear indication of a cost-focused approach to attracting and retaining customers.

Scenario - SS.com Faced with Rapidly Growing Business, Swift Stocks, Inc., a Stocks