Business Format Franchising - The next market entry model for Boots Retail International?

Powell, Andrew (2005) Business Format Franchising - The next market entry model for Boots Retail International? [Dissertation (University of Nottingham only)] (Unpublished)

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This dissertation is based in the field of international retailing and in particular, the value and challenges associated with employing franchising as a vehicle for international retail expansion. Its focus is on The Boots Group (TBG) and specifically its loss-making subsidiary BRI (Boots Retail International).Despite its loss- making label, BRI is currently enjoying a significant upturn in fortune,on the back of very positive profitable growth figures, which have generated an increased enthusiasm for expanding the number of markets BRI is currently actively trading in. This has lead to the challenge of investigating whether BRI should develop a retail business format franchise for application as a relatively risk free method of market entry and if so what market offers the best option for testing this franchise system.

The methodology for the research used to answering this challenge utilises, a literature review and contemporary practitioner interviews, to establish and refine a series of hypotheses for the factors critical to successful franchising. These factors are tested against the Boots retail model to provide an insight into the feasibility, benefits and risks of its use as the basis for a franchise system.

Having established the potential value of developing a franchise system the study looks at the factors which characterise successful franchise markets and, using quantitative data, partially validates an internal belief that the Middle East markets, specifically the GCC present the best opportunity for testing the system. Further data is then gathered utilising inputs from potential franchisees to complete a full strategic market analysis and operating model for a Boots franchise system in the region.

This study concludes that Boots should, through BRI, develop a retail franchise system and that this system should be tested in the GCC markets as a prelude to a full roll out in this market and its application as a model of market entry which compliments the existing implant strategy being used to great effect within BRI.

Item Type: Dissertation (University of Nottingham only)
Keywords: Business Format Franchising
Depositing User: EP, Services
Date Deposited: 17 Feb 2006
Last Modified: 15 Sep 2016 01:39

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