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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:

  1. (a) According to the BCG matrix, identify and briefly describe the four categories used to classify Strategic Business Units (SBU).

  2. (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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