In which type of business environment are price cutting strategies and franchising strategies most appropriate?
In which type of business environment are price cutting strategies and franchising strategies most appropriate?
In a mature, fragmented business environment, price-cutting strategies and franchising strategies are most appropriate. In a mature market, the growth rate tends to slow down, and companies often seek ways to differentiate themselves, control costs, and capture market share. Fragmentation implies that there are many competitors, none of which dominate the market, leading companies to adopt aggressive pricing strategies and expand through franchising to maintain or grow their market presence.
Question-related to the previous version of the CIA exam I think. Correct me please if I'm wrong.
this is old