Franchising, especially when considering international markets, has a number of

Question

Franchising, especially when considering international markets, has a number of desirable characteristics. Depending on the nature of the business and the vision and goals of the franchisor, it is possible to create partnerships with professionals around the world who more deeply understand their target markets, messaging and cultural-sensitive communication mechanisms, and as well as local laws, rules, and regulations. If such a path is taken, what can be done to remain effectively “connected” to the ultimate customers? Are there any current trends with the Internet, eBusiness, and social media that might be useful?

Research various standard form of franchising, post your assessment of franchising as potential sales and distribution strategy using at least one concrete example, be it positive or negative, to support your conclusion.

Explanation / Answer

The best and most successful example of a franchising as potential sales and distribution strategy, is the example of McDonald's, it opens a new outlet every 14.5 hours and the model it always follows is franchising. The reason for its immense success can be attributed to the customization it does to the product mix according to the local taste and preferences, its assurance of uniformity of taste and quality standards, something which has contributed to the success of the brand.

For example McDonald's has a veg only variant for the Indian markets where it serves the burger along with numerous other sides like coke.

In the Germany which is a predominantly beer drinking market, McDonald's also serves Beer along with its regular burgers. Localisation and franchising have been the key contributors to McDonald's success.

The various forms of franchising include:-

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