Scenario - QT.com
Faced with rapidly growing business, Quick Trade, Inc., a global brokerage company with the largest market share, recently announced that they have established an on-line stock investment and trading subsidiary, QT.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.
-Quick Trade is following which strategy, according to Porter, through the .com subsidiary?
A) Stability
B) Cost leadership
C) Focus
D) Differentiation
E) Retrenchment
Correct Answer:
Verified
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