Question
World Investors Inc. is a large, global brokerage company. The company has been doing exceedingly well of late and has acquired a significant share of
World Investors Inc. is a large, global brokerage company. The company has been doing exceedingly well of late and has acquired a significant share of the market. The company recently announced that it has established an online stock investment and trading subsidiary, called W-Investors.com. This subsidiary has been designed to enable investors to trade stocks at the lowest rates in the industry. The dot-com subsidiary has less than 1 per cent market share but it faces a very high business growth rate. In the brokerage industry, the competition is fierce and all players have reduced their online commission rates.
Please answer the following:
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(a) According to the BCG matrix, identify and briefly describe the four categories used to classify Strategic Business Units (SBU).
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(b) According to the BCG matrix, how would you classify (i) World Investors traditional brokerage business and the (ii) subsidiary W-investors.com?
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