In a bid to expand its business and gain cost advantages, Omega Inc. has established several merchandising outlets in different locations. All the outlets share a good network and are interconnected by information technology. The entire network of outlets operates in the industry as one large company. Which of the following strategies has Omega Inc. most likely used? a. Franchising b. Divestment strategy c. Horizontal merger d. Chaining e. Niche strategy

Question

Stella Mueller

Business

21 August, 00:12

In a bid to expand its business and gain cost advantages, Omega Inc. has established several merchandising outlets in different locations. All the outlets share a good network and are interconnected by information technology. The entire network of outlets operates in the industry as one large company. Which of the following strategies has Omega Inc. most likely used? a. Franchising b. Divestment strategy c. Horizontal merger d. Chaining e. Niche strategy

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Answers (1)

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Adam Doyle · Answer 1

d. Chaining

Explanation:

When a business use chain strategy one parent company owns a chain of businesses. It is a strategy to increase the coverage of the business.

Omega Inc. established several merchandising outlets in different locations with the aim of increasing its business and to gain cost advantage.

All of the outlets all operate as one company. This is called chain strategy.

On the other hand franchise is when independent parties buy rights to use of a company's brand for business operations.