Swift Stocks
Faced with rapidly growing business, Swift Stocks, Inc., a global brokerage company with the largest market share, recently announced that it has established an online 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 online commission rates.
-According to the BCG matrix, the SS.com subsidiary for Swift Stocks can be classified as a:
A) cash cow.
B) dog.
C) star.
D) question mark.
E) weakness.

Question

Quizplus · Accepted Answer

The SS.com subsidiary is a new venture with a high growth rate but low market share, indicating that it is a question mark or a "problem child" in the BCG matrix. It has the potential to become a star if it can capture more market share and become a dominant player in the online brokerage industry.

Swift Stocks Faced with Rapidly Growing Business, Swift Stocks, Inc., a Global