MARKET ENTRY STRATEGY:
Mr Bean its recommended to use franchise strategies to Hong Kong Franchising Simpler Management franchisees are themselves responsible for the day-to-day running of their business units and they must do this strictly in accordance with the Franchise Agreement and Operating Manual , faster Expansion The benefit of self-financing business units and a simplified management structure as described above usually means that franchised networks can be expanded more quickly than company-run networks International Potential
Using a system called Master Franchising, you can quickly and simply replicate the whole of the your Singapore franchise model in another country, leaving the Master Franchisee to adapt the model to the local market This mode of market entry can also be seen as safe bait since it involves low political risk, low cost, allows simultaneous expansion into a wide range of markets and if partners are selected judiciously then they lead to outside financial investment from franchising business and other managerial capabilities. However, there are some disadvantages also involved which consist of franchises becoming future competitors or in some case choosing a wrong business partner will lead to the tarnishing of the brand image.
Franchising.
Market entry for Mr bean we choose via Franchising. Our franchisee will be entrepreneur or company
This allows the business to expand by selling the rights to use the Mr Bean branding and business model instead of building new units by using the company’s own funds. A new franchisee entrepreneur can follow the ropes to get started with a successful business blueprint from Mr. Bean. By opening an invitation to follow the Mr Bean business model, the contracted franchisee will follow the franchisor Mr bean business model and pay the franchisor royalties based on a percentage of unit sales. This allows Mr Bean to grow their business in Hong kong without having to spend substantial amounts of their own money to build new units. The risk of possible failure is transferred to the franchise in Hong Kong who is responsible for coming up with the initial capital. As a win-win situation, franchise business owners who have little experience would be provided with the depth of experience from the principal company franchisor who guides them with a successful business model to follow, which can reduce the uncertainty associated with starting a new business venture from scratch. Comparison with other international market entry choices the company has made. They has opened its doors through a franchise model in the heart of Japan near a busy train station Shibuya. Strong media endorsement has been posted with articles praising the top-notch soya bean products from Mr bean of Singapore. We would like to expand further in Hong Kong with the franchise strategy which reduces risk of business expansion if it fails to bring in profits.