EXPLORING FACTORS INFLUENCING THE INTERNATIONALISATION OF RETAILING: A CASE-STUDY APPROACH TO THE CHINESE EXPERIENCE

Anthony Hao, Fiona Wang

Abstract


This research was aimed at investigating the factors the influences the choice of franchising as an international market entry strategy in the retail sector. The objectives of this study  were to  examine differences and similarities in factors that influences the choice of franchising as an international market entry strategy between different organisation, examine the factors which are more emphasised by the respective organisations and the reason for the emphasis,  examine the measures adopted to monitor and control franchisee in order not to compromise the rights conferred on them and  make suggestions as to areas where international franchisors can also emphasis in order to achieve the objectives of franchising.  Two respondents from McDonalds and Starsbuck were selected as a case study. They were reached by undertaking and interview on skype. The study concludes that the decision of the companies to extend their operations to China is motivated by the prospect of an increase market share and revenue, promotion of brand image and popularity as well as spreading their risk. In the case of Starsbuck and McDonalds the respondents have agreed franchising as a market entry strategy is cheaper to get the above objectives even though it comes with some challenges. Between Starsbuck and McDonalds, there is no significant difference on the reason, the factors which determines their choice of franchising strategy the advantages and the disadvantages of franchising and the way by which they can control the effect of these challenges.


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