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20108115337211

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20108115337211

  1. 1. outline• The introduction of franchising• The introduction of 7-eleven• Case Study: 7-eleven Franchising in Shanghai• Advantages and disadvantages of franchising• Conclusion
  2. 2. The introduction of franchising• Brief introduction: The idea of franchising• History & development• Types of franchising
  3. 3. What is franchising?Franchising is the practice ofusing another personsbusiness model.
  4. 4. History & development• came to prominence until the 1930s in theUnited States• the rise of franchise-based food serviceestablishments
  5. 5. Types of franchising• Trade Name Franchisingeg: international hotel chains.• Product Distribution Franchisingeg: the brewery industrys sales of international soft drinks• Business Format Franchising
  6. 6. The introduction of 7-eleven• History and development• 7-eleven franchising in China
  7. 7. introduction• Founded in America in 1927(SouthMainland Ice Company)Milk,eggs,breadOpened 16 hours per dayChanged its brand name to 7-11 in 1946Open the age of convinient stores!cover 18 countries
  8. 8. Franchising in China• In 1992 in Shenzhen• In 1995 in Guangzhou• (restriction of foreign investment onfranchising-----failed to develop rapidly)• Guangdong Saiyi convenient stores Companyltd• Got a passport of setting up 300 stores inGuangdong
  9. 9. 7-eleven Franchising in ChinaIn 2005 in Beijing• Registered fund:35million dollars• Till August over 590 shops• 512 — Guangzhou 75 — BeijingIn 2009 in Shanghai• Franchiser: Uni-president Company( 台湾统一企业 )
  10. 10. 7-eleven Franchising in Shanghai
  11. 11. When: 2009Who: Taiwan President Chain Store台湾统一超商 (right of management )Why: (late) Japan-based strategic consideration
  12. 12. 1 、 mature convenient chain store management( 成熟的便利店业态)2 、 fierce competition
  13. 13. Competitive Differentiation 差异化竞争
  14. 14. 1 、 Kuai can dao/quick meal counter( 快餐岛服务)2 、 hao dun/good stews( 好 炖)3 、 7-Eleven’s City Cafe……
  15. 15. Advantages and disadvantages offranchisingfor the franchiserfor the franchisee
  16. 16. 1.National expansion of the brand2.Reduction of competitors’ abilities3.Attraction of entrepreneurs4.Improvement of market share5.Unique services the customersKey advantages for the franchisor are:
  17. 17. Key advantages for the franchisee are:1.Access to a proven business concept2.An operating blueprint3.Training4. management support5.Exchange ideas and experiences
  18. 18. Key disadvantages for the franchisor1.mistakes of unsatisfactory franchisees.2.difficult to control franchisees.3.have to share profits with franchisees,.
  19. 19. Key disadvantages for the franchisee1.Less freedom and creativity2.many costs, restrictions and obligations3.no guarantee
  20. 20. outline• The introduction of franchising• The introduction of 7-eleven• Case Study: 7-eleven Franchising in Shanghai• Advantages and disadvantages of franchising• Conclusion

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