Korean food-service franchises have struggled to achieve their full international potential despite a decade of expansion efforts. This study goes beyond competitor analysis to identify optimal overseas expansion strategies for Korean franchise compan...
Korean food-service franchises have struggled to achieve their full international potential despite a decade of expansion efforts. This study goes beyond competitor analysis to identify optimal overseas expansion strategies for Korean franchise companies. Our goal is to equip domestic franchises with a framework for stable operation and successful international growth.
This paper proposes a novel approach leveraging three strategic entry methods: first-mover, platform, and conversion strategies. Traditionally, Korean companies have focused solely on franchising methods, neglecting strategic considerations. This study analyzes the suitability of each entry method based on specific market characteristics.
Within this strategic framework, the study recommends appropriate franchise entry methods (direct franchising, regional development franchising, etc.) aligned with a company's capabilities to maximize growth. Franchise companies can adopt one of three entry strategies based on their goals and market potential.
This combined approach, considering market accessibility, potential, strategic importance, and development level, is expected to lead to superior market performance. Finally, the study proposes future research involving an empirical analysis of successful franchise headquarters to develop a comprehensive framework suggesting the most suitable overseas market access strategies and entry methods for each unique franchise company.