There Are Four Types of Growth Opportunities for Franchise Systems

question 7

Multiple Choice

There are four types of growth opportunities for franchise systems to increase sales and share-of-market within their customer base.Which one below is not one of these tried-and-true approaches for growth?

• A)Retain existing customers.
• B)Stimulate more purchase within your existing customer base.
• C)Offer new products/services in new territories to new customers
• D)Cross-sell complementary products/services that meet new or a different combination of existing customer needs.

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Definitions:

DuPont Cellophane Case

The antitrust case brought against DuPont in which the U.S. Supreme Court ruled (in 1956) that while DuPont had a monopoly in the narrowly defined market for cellophane, it did not monopolize the more broadly defined market for flexible packaging materials. It was thus not guilty of violating the Sherman Act.

Microsoft Case

A 2002 antitrust case in which Microsoft was found guilty of violating the Sherman Act by engaging in a series of unlawful activities designed to maintain its monopoly in operating systems for personal computers; as a remedy the company was prohibited from engaging in a set of specific anticompetitive business practices.

DuPont Cellophane Case

A landmark antitrust case in which DuPont was accused of monopolistic practices in the cellophane market, highlighting issues of market dominance and competition.

Relevant Market

A market segment within which a particular product is sold, characterized by its competitiveness and substitutability.