market servicing strategy

Explain the conditions under which franchising is an appropriate mode for market entry in international business. Under what circumstances in the long-term might a firm re-acquire some of its franchisees as part of its market servicing strategy?

Baumol, W.J. (1982), ‘Contestable markets: an uprising in the theory of industry structure’, American Economic Review, vol. 72, no. 1, pp. 1-15, available at: research/ readings/baumol-contestable.pdf. 

Buckley, P.J. & R. Enderwick, ‘The global factory’, mimeo. Dunning & Lundan, chs. 8 & 9. Graham, E.M. 1974, Oligopolistic Reaction & European Direct Investment in the United States, Harvard Business School. 

Graham, E.M (1978), ‘Transatlantic investment by multinational firms: a rivalistic phenomenon’, Journal of Post-Keynesian Economics, vol. 1, no. 1, pp. 82-99. 

Hoenen, A.K. & M.W. Hansen (2009), ‘Oligopolistic competition and foreign direct investment?: re-integrating the strategic management perspective in the theory of multinational corporations’, Copenhagen Business School, Working Paper Series, no. 10.

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