Abstract

Franchising is considered an integral part of modern business practice. In the food industry, this is considered a relatively new but well-established business model. The agrifood sector in the Republic of Artsakh is in the stage of development, but there is still much to be done in systemic terms. From the point of view of state and private sector cooperation, a way to solve the issue could be to introduce micro and small entrepreneurs with limited opportunities under a universal brand. The use of umbrella branding in the field of agro-processing can be an incentive in terms of additional activation of the given branch in the Republic of Artsakh and the formation of a new business culture. In this situation, it is advisable to use the tools of informal economic diplomacy, and to be guided by the logic of the Switching Costs model in the private sector.

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