Commonwealth Securities Limited: The Leading Australian Online, Discount Stockbroker

This case explores the challenges of launching a new on-line business within an existing business, its unique IT needs, and how these needs change as the business matures. The case describes how Commonwealth Securities Limited (CommSec), a wholly owned subsidiary of the Commonwealth Bank of Australia (‘the Bank’), successfully established itself as the leading discount stockbroker in Australia. It has been able to use its autonomy to get a small company feel within a large organisation. Its success involves a clear business strategy, customer value proposition and an aggressive pricing strategy. This was underpinned by ‘low cost’ technology, which has been used to maintain its price leadership position.