After years of strong growth, Taco Bell is branching out from traditional single-purpose stores. Its uses kiosks, movable carts in malls and at the gas station, products on supermarket shelves, and even in-school lunch programs. In only a few years, it has more than quintupled its points of access. It aims to have 200,000 outlets; most of which will be nontraditional. What is Taco Bell potentially producing among its franchisees and other distributors of Taco Bell products?

Question

Quizplus · Accepted Answer

Taco Bell's strategy of expanding its points of access through various nontraditional outlets could potentially produce horizontal conflict among its franchisees and other distributors. This is because these different outlets could compete with each other for the same customers, leading to conflicts among the various distributors and franchisees who are on the same level of the distribution channel.

After Years of Strong Growth, Taco Bell Is Branching Out