To compete in the fragmented restaurant industry, Red Lobster Corporation built and operated hundreds of restaurants across the United States and Canada. Red Lobster is using which type of strategy?

Question

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Red Lobster Corporation is using the chaining strategy, which involves building and operating multiple locations in order to create a consistent brand identity and increase market share. This is effective in the fragmented restaurant industry as it allows for greater reach and customer recognition. Acquisitions would involve purchasing other companies, diversification would involve expanding into other industries, and franchising would involve allowing others to use the brand name for a fee. Horizontal mergers involve merging with competitors, which is not applicable in this scenario.

To Compete in the Fragmented Restaurant Industry, Red Lobster Corporation