Can Franchising as a strategy help organization gain market share Essay

Can Franchising as a strategy help organization gain market share globally guinea pig study as Starbucks - Essay ExampleThe Word franchise is sometimes (particularly in the United States) is used in a wide sense much or less synonymous with distributorship. It is not a technical legal expression but in Europe the word generally connotes something along the lines of the setup described below. It is a distribution method described by a manufacturer or supplier who has developed a well known defecate and appearance for its product (usually including intellectual property rights). It may manufacture the goods itself or it may simply select goods produced by a third party. In the last mentioned grapheme the franchise maybe described as the product line format franchise, since it is essentially a business format that is being exploited. In either case it will probably have established an image for its existing sales outlets, connected with the physical appearance of the outlets and the business methods applied. These names trademarks and image, will be known by the public and attract customers who recognize these familiar signs. Service franchises such as photocopy shops and hair dressing salons are also a type of business format franchise2.The story of the Starbucks great deal tells of one of the most successful business endeavors in recent memory. Unfortunately, if you dream of someday opening your very own Starbucks drinking chocolate shop, you should know that the Starbucks Corporation famously does not franchise its business operations. However, there are other ways to pursue a Starbucks franchise opportunity.The Starbucks Corporation is base in Seattle, where the first Starbucks stores were opened in Seattles Pike Place Market in 1971. Howard Schultz, the director of retail and marketing for Starbucks, was inspired by the coffee refining of Southern Europe. Clearly, the Starbucks business model has attracted much success and attention. While many pot ential investors would relish the idea pursuing a Starbucks franchise opportunity, the company does not franchise their stores. There does exist another Starbucks franchise opportunity. The Starbucks Corporation does participate in the sales of license agreements to qualified businesses or individuals. The Starbucks license agreement allows a smaller company to sell Starbucks products and conduct its own operations. However, this smaller operation remains solely owned by the Starbucks Corporation. Another way to pursue a Starbucks franchise opportunity is through the route of a joint venture scheme. A joint venture scheme allows a company to align itself with the Starbucks Corporation in a hopefully mutually beneficial business relationship. The joint venture scheme is akin to the relationship forged between Barnes and Noble and Starbucks3.Advantages & Disadvantages of FranchisingJust exchangeable any other business structure, a franchise is no exception to the rule of having both advantages and disadvantages associated with owning such a business. While our list will actually make the distinction