Question

Harris Woodard has purchased a franchise business called Like New Windshields, a company that repairs cracked and pitted vehicle windshields. As a franchisee, he will come to your home or office to repair a damaged windshield. His goal is to make sure that he has enough customers without having more than he can handle efficiently. Which of the following is going to make it difficult for him to accomplish his goal?

1) Lack of advertising
2) High competition
3) Limited availability of repair materials
4) Inefficient repair process

Answer 1

Harris Woodard's ability to attract enough customers for his Like New Windshields franchise is most hindered by high competition, given the market shares of existing companies.

Step-by-step explanation:

Harris Woodard's goal to have enough customers without exceeding his capacity to handle them efficiently would be most challenged by high competition in the market. Given that Smooth as Glass Repair Company holds 16% of the market and Your Car Shield Company, along with several other smaller companies, holds a combined total of 42% of the market, Harris's new franchise Like New Windshields must contend with multiple competitors. This high competition can make it difficult for him to attract and maintain a consistent customer base, especially when the top four firms have a combined market share of 40%, which is less than half the market, indicating room for competition.