Can Franchising as a strategy help organization gain market share Essay

Can Franchising as a system help organization gain market share globally case study as Starbucks - canvass ExampleThe Word license is sometimes (particularly in the United States) is used in a large sense more or less synonymous with distributorship. It is not a technical legal verbal expression but in Europe the word generally connotes something along the lines of the setup described below. It is a dissemination method described by a manufacturer or supplier who has developed a soundly known name 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 latter case the immunity perchance described as the business 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 strong-arm appearance of the outlets and the busi ness methods applied. These names trademarks and image, will be known by the public and attract customers who gain 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 Corporation tells of one of the most successful business endeavors in recent memory. Unfortunately, if you dream of someday opening your very own Starbucks coffee shop, you should know that the Starbucks Corporation splendidly does not franchise its business operations. However, there are other focussings to pursue a Starbucks franchise opportunity.The Starbucks Corporation is based 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 culture of Southern Europe. Clearly, the Starbucks business stick has attracted much success and attention. While many potential 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 give away 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 amongst Barnes and Noble and Starbucks3.Advantages & Disadvantages of FranchisingJust like any other business structure, a franchise is no exception to the get hold of having both advantages an d disadvantages associated with owning such a business. While our list will actually make the distinction