2) For 20 years, you have run a small sandwich shop in a small Ohio town. You ha

Question

2) For 20 years, you have run a small sandwich shop in a small Ohio town. You have done well as there are no competitors near you. In addition to your breakfast and lunch menu, you sell bread, milk, candy and ice cream novelties. Things are about to change. Natural gas has been found on several farms in the area and fracking crews are about to arrive. The population of the town will go up by 25% and twice as many people will be working in town due to the energy boom. The town council has been approached by McDonald's regarding a site location and even Starbucks took an option out on a property 300 yards from your shop. Do you stand and fight and how do you plan to compete against the two giants or do you sell you building and start all over again in another stateQ There is no right or wrong answer.

Explanation / Answer

There should be no fear from these franchisees since the US has around 54 percent independent owners who sell their local brands more cost advantageously then the food giants. Moreover, 20 years of reputation, knowledge of consumer's tastes, popularity for being the local and most trustworthy shop are some of the reasons why a movement to another state will cause troble. Starting over again from zero would be devastating.

Another fact is that in addition to your breakfast and lunch menu, you sell bread, milk, candy and ice cream novelties. So you must not fear and stand and fight and how do you plan to compete against the two giants. It is possible that moving to another town might prove difficult if there are competitors around.

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