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.
-Swift Stocks is following which strategy, according to Porter, through the .com subsidiary?
A) Stability
B) Cost leadership
C) Focus
D) Differentiation
E) Retrenchment

Question

Quizplus · Accepted Answer

Swift Stocks is following a cost leadership strategy through its new online stock investment and trading subsidiary, SS.com. The company is offering the lowest rates in the industry to attract investors and gain market share. This is a common tactic in the brokerage industry where the competition is aggressive and players are constantly cutting their online commission rates.

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