The company has to adopt a great marketing strategy to enter new markets. There are many options available to enter into India, but it needs strategic issues when entering into new markets of foreign countries. The company has to arrange its products, technology, human resources, capital, marketing, and other resources when intending to enter new markets. The modes of entry into the new markets help the organizations to set their goals, resources, and maintain policies so that the company can work smoothly in the international new markets. When an organization decides to enter a new market, the best choice of entry mode is included in the expansion strategy of the company. There are different entry modes like exporting, turnkey projects, licensing, franchising, joint venture with the host country organizations, and establishing a subsidiary in the country.
So, to make the right decision when entering the market of India, there is need of careful planning and the consideration of all different modes of entry.
Franchising is the best option for Fast Food Business to enter in India
A franchisee does not involve too much risk and this may the best option for India. A franchisor “licenses its trademark, products and services, and operating principles to the franchisee for an initial fee and ongoing royalties” (Deresky, 2011, p. 218). Most fast-food businesses run on this model and it is so far the best method for fast-food restaurants in the world.
Product or Service deliverables
This component makes the fast food business unique, like uniqueness in its menu, which helps the fast food company in the competitive atmosphere of the market place.
Benefit Communicators
This component of franchise business let the franchisee gain intangible benefits for the customers like trademarks, clean uniforms in fast food stores, color scheme of the outlet, and of course the management expertise, the brand name and quality control. All these things build confidence in the product or service.
Format Facilitator
These include the policies and procedures in the franchise business, which facilitates smooth functioning of the business. These are the factors which are not seen by the consumers, but the entire system of the franchise is based on all these facilitators.
Benefits of Adopting Franchise as Entry Mode
There are many advantages of the franchising model, like low political risks, low cost, and opportunity to expand rapidly in the market. In addition, a franchise is a good option to bring balance in risk and returns and it is a powerful business model in the world today. A franchise is also the best option for entering the Indian market because it is the ideal approach for medium and small business enterprise especially (Deresky, 2011, p. 218). The option of a franchise is a good one for our medium-size business, but “The challenge...is achieving this expansion in a structured way, on a limited budget and without losing control of the business both at home and in the target market” (Simpkin, 2010). A franchise being successful in one community does not mean it will also be successful in another, so analysis must be done of the culture, demographics, political, legal system, and differences in languages.
So, to make the right decision when entering the market of India, there is need of careful planning and the consideration of all different modes of entry.
Franchising is the best option for Fast Food Business to enter in India
A franchisee does not involve too much risk and this may the best option for India. A franchisor “licenses its trademark, products and services, and operating principles to the franchisee for an initial fee and ongoing royalties” (Deresky, 2011, p. 218). Most fast-food businesses run on this model and it is so far the best method for fast-food restaurants in the world.
Product or Service deliverables
This component makes the fast food business unique, like uniqueness in its menu, which helps the fast food company in the competitive atmosphere of the market place.
Benefit Communicators
This component of franchise business let the franchisee gain intangible benefits for the customers like trademarks, clean uniforms in fast food stores, color scheme of the outlet, and of course the management expertise, the brand name and quality control. All these things build confidence in the product or service.
Format Facilitator
These include the policies and procedures in the franchise business, which facilitates smooth functioning of the business. These are the factors which are not seen by the consumers, but the entire system of the franchise is based on all these facilitators.
Benefits of Adopting Franchise as Entry Mode
There are many advantages of the franchising model, like low political risks, low cost, and opportunity to expand rapidly in the market. In addition, a franchise is a good option to bring balance in risk and returns and it is a powerful business model in the world today. A franchise is also the best option for entering the Indian market because it is the ideal approach for medium and small business enterprise especially (Deresky, 2011, p. 218). The option of a franchise is a good one for our medium-size business, but “The challenge...is achieving this expansion in a structured way, on a limited budget and without losing control of the business both at home and in the target market” (Simpkin, 2010). A franchise being successful in one community does not mean it will also be successful in another, so analysis must be done of the culture, demographics, political, legal system, and differences in languages.