For a hotel company whose competitive advantage is based on high brand name recognition, which of the following ways of serving an overseas market makes the most sense?
A) Exporting
B) Licensing
C) Franchising
D) Entering into a joint venture with a foreign company
E) Setting up a wholly owned subsidiary

Question

Quizplus · Accepted Answer

Franchising allows the hotel company to expand its brand overseas by allowing a local operator to use its brand name, operating procedures, and business model. This method leverages the company's high brand name recognition while also benefiting from the local franchisee's market knowledge.

For a Hotel Company Whose Competitive Advantage Is Based on High