Activity

Activity objective

To consider a franchise system as a viable strategy for a Mexican business trying to reach another national market in the Americas.

Instructions

A vital element for a successful international market entry strategy is an appropriate fit of skills and capabilities between business partners, especially when adopting a franchise system.

  1. Now, go to Entrepreneur magazine website and find the latest ranking of the top 200 global franchisers available, and then provide a list of the top 20 companies that pursue franchising as a mode of international expansion. From an international business perspective, what are the most common features shared by these 20 companies?
  2. There is a big Mexican company that has been planning to enter the US market for a long time, however the company had doubts and chose to deploy first a franchising program in other parts of the world. We are talking about KidZania. Have you heard about it? Either way, do some research about Kidzania's case and take notes.
  3. Once you are done with your research, please provide a detailed description of its business model, its international expansion strategy, a list of desirable qualifications in potential franchises, and the institutional support and training programs typically provided by KidZania (the franchiser).
  4. According to what we have learned so far, answer these questions:
    1. What would you tell to KidZania CEO about the current business environment in the United States?
    2. Would you recommend KidZania to enter the US market today? Why or why not? And where exactly?
    3. Are there any special improvements to be implemented before landing in the US or should the company just follow a regular franchising strategy? If so, what is there to improve?

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