Internationalization of economy is one of the most important topics of recent times. It is characterized by globalization of the business world which means that more and more companies compete with foreign ones by entering new markets or introducing new products that are available everywhere through disappearing barriers and boundaries. As a consequence the question arises how companies follow their expansion strategies. A central issue linked to this question is the entry mode decision, because it is essential for the success of the globalization activities of a company.
One possible entry mode is called franchising which is used by a lot of well-known companies worldwide. The focus of this term paper is to evaluate this type of entry mode based on the example of Subway, an international operating fast food chain.
To accomplish this purpose, the theory of market entry modes is explained in the beginning. Further an overview of the different entry modes is given in order to highlight the differences between them. After that franchising as a mode of entry is explained in detail. As a result of presenting the theory a profile of Subway follows. Furthermore the market entry strategy of Subway is analyzed regarding the fact how franchising influenced the expansion of the company in general. After that the market entry into the Chinese market and its challenges is explained. To conclude the term paper, the theory and the practical example is summarized in order to outline whether Subway enters new markets efficiently and how franchising as a market entry mode influences the expansion of the company against the backdrop of the example.
Table of Contents
- Introduction
- Market entry modes
- Basics
- Overview
- Franchising as a mode of entry
- Subway
- Profile of the company
- Franchising as an expansion strategy
- Market entry in China as an example
- Conclusion
Objectives and Key Themes
This paper aims to evaluate the market entry mode of franchising used by Subway, a global fast-food chain, focusing on its expansion strategy. It analyzes how franchising has contributed to Subway's overall growth and examines the challenges and successes of this strategy, specifically using Subway's entry into the Chinese market as a case study.
- Market entry modes and strategies
- Franchising as a market entry mode
- Subway's expansion strategy
- Subway's market entry into China
- Analysis of franchising's impact on Subway's global growth
Chapter Summaries
Introduction: This introductory chapter sets the stage by discussing the increasing internationalization of business and the importance of choosing the right market entry mode for successful globalization. It highlights franchising as a prevalent entry mode and introduces Subway as the case study for this paper, outlining the paper's structure and objectives. The chapter emphasizes the significance of understanding market entry decisions for successful global expansion.
Market entry modes: This section delves into the theory of market entry modes, providing a comprehensive overview of various strategies companies employ to enter new markets. It differentiates between these various modes, highlighting the specific characteristics and implications of each approach. The detailed examination of different market entry modes lays the groundwork for a focused analysis of Subway's choice of franchising.
Subway: This chapter presents a detailed profile of Subway, the fast-food chain, examining its business model and overall strategic approach to global expansion. It specifically analyzes Subway's use of franchising as a core element of its expansion strategy, illustrating how this approach has shaped its growth trajectory and global presence. The chapter bridges the gap between the theoretical framework and the practical case study.
Keywords
Market entry modes, franchising, Subway, international expansion, globalization, China, strategic management, case study.
Subway's Market Entry Strategy: A Case Study in Franchising
What is the main topic of this paper?
This paper analyzes Subway's market entry strategy, focusing on its use of franchising as a primary mode of international expansion. It examines the success and challenges of this strategy, using Subway's entry into the Chinese market as a key case study.
What are the key themes explored in the paper?
The paper explores various market entry modes, with a specific focus on franchising. It delves into Subway's business model, its global expansion strategy using franchising, and a detailed analysis of its market entry into China. The impact of franchising on Subway's overall global growth is also a central theme.
What are the objectives of this research?
The main objective is to evaluate Subway's use of franchising as a market entry mode and assess its contribution to the company's overall success. The research aims to understand the challenges and benefits of this strategy and provide insights into its effectiveness in different markets, particularly the Chinese market.
What market entry modes are discussed?
The paper provides an overview of various market entry modes, comparing and contrasting their characteristics. While it focuses on franchising, it also lays the groundwork by presenting a broader understanding of other market entry strategies.
What is the significance of Subway's case study?
Subway's entry into the Chinese market serves as a significant case study because it illustrates the practical application of a franchising strategy in a large and complex market. The analysis of this case allows for a concrete examination of the strengths and weaknesses of franchising as a market entry mode.
What are the key chapters and their content?
The paper includes an introduction setting the context and objectives; a section detailing various market entry modes; a chapter focusing on Subway's profile, business model, and franchising strategy; and finally, a conclusion summarizing the findings. Each chapter builds upon the previous one, creating a comprehensive analysis.
What are the key takeaways from the chapter summaries?
The introduction highlights the importance of strategic market entry; the market entry modes chapter provides a theoretical framework; the Subway chapter applies this framework to a real-world example; and the conclusion synthesizes the findings and implications of the study.
What keywords are associated with this research?
Key words include: Market entry modes, franchising, Subway, international expansion, globalization, China, strategic management, case study.
- Quote paper
- Tim Borneck (Author), 2015, Evaluation of Franchising as a mode of entry by analyzing Subway's expansion strategy, Munich, GRIN Verlag, https://www.grin.com/document/320276
