{"title":"International Expansion of United States Franchisors: A Status Report and Propositions for Future Research","authors":"Richard C. Hoffman, S. Watson, J. F. Preble","doi":"10.1080/1046669X.2016.1224300","DOIUrl":null,"url":null,"abstract":"Given the growth of franchising globally, now is an important time to consider the international expansion trends of franchisors. This study examines current trends in the international expansion plans of United States franchisors using a unique data set drawn from 438 announcements on the International Franchise Association's website made by 85 franchisors over nine years. The findings describe the scope, duration, markets, entry modes used, and expansion rationale. Contrary to past practices, United States franchisors are more focused on expanding into the emerging markets of Asia rather than the developed markets of the West. It appears that they are attracted by the growth in these markets. Finally, the results are used to summarize the key trends in international franchise expansion and to generate propositions for future research. Some limitations and implications for practice are discussed.","PeriodicalId":45360,"journal":{"name":"Journal of Marketing Channels","volume":"23 1","pages":"180 - 195"},"PeriodicalIF":0.7000,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1080/1046669X.2016.1224300","citationCount":"6","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Marketing Channels","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1080/1046669X.2016.1224300","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 6
Abstract
Given the growth of franchising globally, now is an important time to consider the international expansion trends of franchisors. This study examines current trends in the international expansion plans of United States franchisors using a unique data set drawn from 438 announcements on the International Franchise Association's website made by 85 franchisors over nine years. The findings describe the scope, duration, markets, entry modes used, and expansion rationale. Contrary to past practices, United States franchisors are more focused on expanding into the emerging markets of Asia rather than the developed markets of the West. It appears that they are attracted by the growth in these markets. Finally, the results are used to summarize the key trends in international franchise expansion and to generate propositions for future research. Some limitations and implications for practice are discussed.
期刊介绍:
The Journal of Marketing Channels is the first and only professional marketing journal to focus exclusively on distribution systems, strategy, and management. The journal recognizes the growing importance of distribution as a key strategic variable in marketing management. Indeed, if one looks realistically at the major strategy variables of the marketing mix—product, price, promotion, and distribution—the greatest potential for achieving a competitive advantage now lies in distribution. The reason? Rapid technology transfer has made product advantages increasingly difficult to maintain. International operations seeking lower costs have made price advantages much harder to sustain because everybody seems to be “playing the same game.” Even promotion, which relies so heavily on mass media advertising, has become a battle of who can spend the most money. But distribution still offers a new frontier for competing successfully especially if the emphasis is placed on the design and management of superior marketing channel systems to provide excellent customer service. A competitive advantage gained through better distribution is not easily copied by the competition and hence becomes a long-term sustainable competitive advantage. Yet designing optimal marketing channel systems, formulating innovative distribution strategies, and managing marketing channel systems effectively is no simple task. In fact, professional marketing expertise of a very high order is required to meet these challenges, especially given the growing competitive role and rapid pace of web-based marketing. The Journal of Marketing Channels helps provide the knowledge and tools needed to develop superior distribution systems, strategies, and management. Leading authorities from around the world present the most up-to-date and in-depth thought, analysis, and research on these topics in this refereed international quarterly journal.