Question

Franchising is a particularly attractive strategy in _____ industries where a large number of small and medium-sized firms compete as rivals.

a fast -cycle
b slow -cycle
c.moderate-cycle
d.fragmented

Answer 1

Franchising is a particularly attractive strategy in fragmented industries where a large number of small and medium-sized firms compete as rivals. In a fragmented industry, there is no dominant player and market share is distributed among multiple competitors. Franchising allows these firms to leverage the reputation, brand name, and established business model of a larger franchisor to gain a competitive edge.

Step-by-step explanation:

Franchising is a particularly attractive strategy in fragmented industries where a large number of small and medium-sized firms compete as rivals. In a fragmented industry, there is no dominant player and market share is distributed among multiple competitors.

Franchising allows these small and medium-sized firms to leverage the reputation, brand name, and established business model of a larger franchisor to gain a competitive edge.