In: Operations Management
Here is the context in which you should write. Bronner’s Christmas Store is one of the largest in America. Bronner’s currently has one store located in Frankenmuth, Michigan. Bronner’s has decided to open up a second store in Heidelberg, Germany. Reflecting on each chapter in our textbook, respond to each of the following questions as though you were hired to be a consultant to Bronner’s.
Describe the method of entry (mode) you think would be the best.
A Thumbs Up! Would be really helpful for me. If you have any questions, please leave a comment and I will get back to you as soon as possible.
According to me, the best method of entry for Bronner's Christmas market through franchising or licensing.
Franchising is a type of agreement under which, the franchisor gives the exclusive right of selling the goods under his brand name and reputation, to the franchise, in consideration of fees.
He should use franchising as a way of entering into a new market because it would help him in expansion without the inclusion of such additional capital in return. He just needs to explain the rules, policies and regulations to the franchisee and the franchisee would equip his own capital and other resources in order to perform the business under the brand name of the franchisor.
Moreover, he doesn't know anything about the taste and culture of the foreign market. So, he should use the franchise as an option to expand his business in Germany, then it would be beneficial because franchises would have known about his local market, about tastes and preferences of the local consumers. It would provide him benefits such as improvement of brand image in another country.
Moreover, he would get fixed earnings or revenue from his franchise, and he doesn't need to bother about its operations and working. He would get his fixed amount of fees regardless of whether the business is earning enough profit or not.