Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills or technological know-how is not much of a concern,and where the firms' valuable asset is their brand name?
A)exporting
B)franchising
C)licensing
D)turnkey projects
E)cross-licensing

Question

Quizplus · Accepted Answer

Franchising is the best mode of entry for service firms that value their brand name, as it allows the firm to expand while maintaining control over the brand and operating procedures. The franchisor provides the brand name and operating systems, while the franchisee invests in the business and operates it under the franchisor's guidance. This allows the franchisor to expand rapidly without bearing the full risk and cost of opening new locations, while also maintaining control over key aspects of the business.

Which of the Following Modes of Entry Is Suitable for Service