QPractice question
In the Subway example, Subway primarily demonstrates which concept?
- A.Channel Conflict
- B.Direct-to-Consumer (D2C)
- C.Channel Design Decisions
- D.Franchising as a Distribution Strategy ✓
Why this answer:
Subway is the textbook illustration of Franchising as a Distribution Strategy. The detailed walkthrough is in the concept guide. The other options are valid concepts but do not match the specific mechanics in this example.
How to think about questions like this
Application questions test whether you can connect a real-world example to the right framework. The trick is to ignore the surface details (industry, company name) and focus on the underlying mechanic the example illustrates.
For Franchising as a Distribution Strategy specifically, look for the signal: Scales the brand without the franchisor financing every outlet. That signal is what distinguishes the right answer from plausible-sounding alternatives.
Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Franchising as a Distribution Strategy for a worked example you can adapt to your assignment.
Underlying concept
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