Evaluation of Franchising as a mode of entry by analyzing Subway's expansion strategy

Dossier / Travail , 2015 , 16 Pages , Note: 2,0

Gestion d'entreprise - Direction d'entreprise, Management, Organisation

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.

Inhaltsverzeichnis (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

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This term paper aims to analyze the expansion strategy of Subway by evaluating its market entry mode in China. It examines the concept of franchising as a mode of entry and explores how it has influenced Subway's global expansion, particularly in the Chinese market.

• Market entry modes and their impact on internationalization
• Franchising as a mode of entry and its advantages and disadvantages
• Subway's profile and its use of franchising as an expansion strategy
• Challenges and opportunities of entering the Chinese market
• Evaluation of Subway's market entry strategy in China

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction provides an overview of the importance of internationalization and the role of market entry modes in company expansion. It also introduces the focus of the term paper, which is to evaluate franchising as a mode of entry through the example of Subway.

The chapter on market entry modes provides a theoretical foundation by explaining the basics of market entry modes and offering an overview of different modes. It then focuses on franchising as a mode of entry, explaining its characteristics and advantages.

The chapter on Subway presents a profile of the company and examines how it utilizes franchising as its primary expansion strategy. It also explores the challenges and opportunities of Subway's market entry into China.

Schlüsselwörter (Keywords)

The key focus of this paper is on internationalization, market entry modes, franchising, Subway, expansion strategy, and the Chinese market. It explores the theoretical framework of market entry modes, specifically focusing on franchising, and examines how this strategy has influenced Subway's global expansion, particularly in China. The paper considers the challenges and opportunities of entering the Chinese market and evaluates the effectiveness of Subway's market entry strategy in this context.

• Université: University of Applied Sciences Essen
• Note: 2,0
• Auteur: Tim Borneck (Auteur)
• Année de publication: 2015
• Pages: 16
• N° de catalogue: V320276
• ISBN (ebook): 9783668198081
• ISBN (Livre): 9783668198098
• Langue: anglais
• mots-clé: evaluation, franchising, subway