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The U.S. fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has:

A) Strong competition
B) Established infrastructure
C) Brand recognition
D) Legal permissions

User Tidbeck
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1 Answer

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Final answer:

Sonic will open new outlets in states adjacent to those where it has brand recognition, leveraging the advantages of a well-known brand as a strategy for expansion.

Step-by-step explanation:

The U.S. fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has brand recognition. This decision is a strategic one that reflects the importance of a well-respected brand name that has been built up over years and the advantages that come with it. Brand recognition acts as a non-government enforced barrier to entry for competitors and positions Sonic in a favorable market situation where it can expand its business with a customer base that is already familiar with its offerings. In contrast, aspects such as strong competition, established infrastructure, and legal permissions are important, but they do not directly explain the strategy behind outlet placement adjacent to states with brand recognition.

User Dwayne King
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