Explain how a chain of markets is formed. What purpose does it serve?

Formation of a Chain of Markets:
1. Initial Success: Starts with a single successful market or outlet.

2. Expansion: Replicates the model, establishing multiple outlets in diverse locations.

3. Ownership/Franchising: Managed centrally or through franchising agreements for uniformity.

4. Unified Operations: Maintains consistency in branding, products, and services across all outlets.

Purpose:
1. Wider Market Reach: Increases market presence and visibility across different areas.

2. Cost Efficiencies: Benefits from economies of scale through bulk purchasing and centralized management.

3. Brand Consistency: Builds trust and loyalty by offering consistent experiences to customers.

4. Competitive Edge: Provides a competitive advantage through standardized offerings and wider presence.