Proposing new variables for the identification of strategic groups in franchising

Abstract

The identification of strategic groups in the Spanish franchising area is the main aim of this study. The authors have added some new strategic variables (not used before) to the study and have classified franchisors between sectors and distribution strategy. The results reveal the existence of four perfectly differentiated strategic groups (types of franchisors). One of the major implications of this study is that the variables that build a strategic group vary depending on the respective sector the network operates in and its distribution strategy. This fact indicates that including sector and distribution strategy is absolutely necessary to achieve good classifications of franchisor types.

Choosing a Travel Agency Franchise by Mean of a Global Composite Indicator: An Application in Spain

“…In order to define the proposed system of indicators, previous studies relating to the identification of strategic groups within the franchise system have been taken as reference (Carney, Gedajlovic 1991;Castrogiovanni et al 1995;López, Ventura 2002;Rondán et al 2007). In this context, the strategic group is understood to be the set of companies within a sector which follow the same or similar strategy based on the analysis of a series of strategic dimensions (Porter 1979).…”

“…Following toRondán et al (2007), royalties and entry fees with a fixed amount have been changed to percentages. To make this change, we have calculated the percentage of them regarding the invoicing of the first year operating.…”

“…To make this change, we have calculated the percentage of them regarding the invoicing of the first year operating. In other case, we have calculated the percentage regarding the total investment.2 Also following toRondán et al (2007), we have considered 25 years for an agreement with unlimited or indefinite duration versus other studies considering 100 years.Source: own elaboration.F. J. Blancas-Peral et al Choosing a travel agency franchise by mean of a global composite...…”

Agrupación de franquiciadores basados en sus preferencias sobre los franquiciados.

“…Es decir, la literatura analizada previamente ha tratado escasamente el tema de si los franquiciadores pueden ser agrupados en clusters o segmentos, en función de sus preferencias sobre el perfil deseado en los franquiciados. La segmentación de franquiciadores se ha llevado a cabo tradicionalmente utilizando una serie de variables cuantitativas que hacen referencia a los establecimientos que dispone el franquiciador, al número de franquiciados, a costes económicos, a la duración del contrato y a los años franquiciando (Blancas-Peral et al, 2012;Carney y Gedajlovic, 1991;Castrogiovanni et al, 1995;Ketchen et al, 2006;López Fernández et al, 2013;López y Ventura, 2001;Rondán-Cataluña et al, 2007). Sin embargo, ninguna variable hace referencia a las preferencias sobre el perfil del franquiciado.…”