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.
-If Swift Stocks' traditional brokerage business were to face a declining business growth, it may need to be reclassified as a __________ on the BCG matrix.
A) cash cow
B) dog
C) star
D) question mark
E) dead business

Question

Quizplus · Accepted Answer

A "cash cow" in the BCG matrix refers to a business unit with a large market share in a mature, slow-growing industry. If Swift Stocks' traditional brokerage business faces declining growth but still maintains a large market share, it would be classified as a cash cow.

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