Benefits Of Franchising System In Turkey

Benefits Of Franchising System In Turkey

Length: 1527 words (4.4 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Benefits Of Franchising System In Turkey


Franchising system has lots of adventages for economic growth of Turkey such as it creates job opportunity , competition improves the domestic campanies and global campanies brings many adventages.

FRANCHISING IN TURKEY

Franchising is one of the most important ways for global campanies and Turkey is seen as a profitablemarket for international franchisors.In Turkey , there are many franchisors in different sectors.Especially, Turkey's geographic position between Europe and Asia is a important adventage for foreign investors.Moreover , Turkey's population that has reached to 70 million people creates a vaste number of customers.To illustrate , Zorlu in his dissertation cited from F.Bilge (2000) that '' the franchising market in Turkey is going to enjoy a substantioal growth in near future because many traditional dealer networks are being transformed into franchises by large campamies''.That shows , Turkish franchising market will continue to grow.Franchising system has lots of adventages for economic growth of Turkey such as it creates job opportunity , competition improves the domestic campanies and global campanies brings many adventages.

The franchising system is one of the most successful and profitable business method in the world.This system entired Turkish market 15 years ago and it continues to grow.This system has also led to increasing working people rate in Turkey.According to National Franchise Associotion's report (1999) ''there were nearly 200 franchisors and more than 4000 franchisees in 1998 and it will continue to increase'' (p22)

How to Cite this Page

MLA Citation:
"Benefits Of Franchising System In Turkey." 123HelpMe.com. 07 Apr 2020
    <https://www.123helpme.com/view.asp?id=163809>.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Pros And Cons Of Franchising Essay

- In modern days,business models are expanding through out the world and one of the most known business model is franchising. Franchising has shown a dramatic growth since it offers many significant advantages when compared to other distribution methods. When a new entrepreneur starts investing into business,it is necessary for one to consider the pros and cons of all option. The best method to achieve success is to venture into a franchise. This is because franchise system is able to gain more capital without encountering a significant number a bills for rents,staff and credit intrigue which tend to deplete away the profits of conventional business (Stanworth et.al,2004,p.554)....   [tags: Franchising, Marketing, Franchise, Business model]

Research Papers
857 words (2.4 pages)

Franchising And Marketing Management : Toyota Essay

- US 6412 Franchising and marketing management harpreet brar Student ID 15101 Task 1 Toyota is a big car company in world Toyota have a franchises all over the world normally Toyota is famous for good cars day by day this company going is growing and nowadays Toyota also start design electrical goods and other so ,any things .this company stablish in 1867 . and now this company is in all over the world and mostly Toyota have franchises in every country and individuals also have good experience with this company ....   [tags: Marketing, Franchising, Franchise, Sales]

Research Papers
3847 words (11 pages)

What Makes Franchising More Attractive Than Starting Up A New Business From Scratch

- Initial-and-ongoing-support Initial and ongoing-support is one of the most important aspects in developing a franchise system. What makes franchising more attractive than starting up a new business from scratch is that they do not need to have any background knowledge in the industry as franchisors will have the system and provide the support to get them started. All successful franchises have excellent support for their franchisors, and this is also one of the aspects of attracting franchisees....   [tags: Franchising, Franchise, Marketing]

Research Papers
1129 words (3.2 pages)

Subway 's Current Franchising Process Essay

- Subway Report Executive Summary This report has examined the current franchising process in which Subway adhere to, while also indicating to subway that they could improve their franchising method by monitoring and controlling franchisees operations, while providing assistance and support throughout. Moreover, this report highlights the cultural challenges, such as; legal systems, laws and regulations, language barriers and the cultural differences with regard to Subways menu. Lastly, the recommended alternative approach Subway can use in conjunction with franchising, in order to gain a competitive advantage, is to export their products into supermarkets overseas....   [tags: Franchising, Business model, Marketing]

Research Papers
3072 words (8.8 pages)

Franchising Essay

- As firms continue to expand their operations, they have often relied on franchising to create a more prominent presence nationwide. While franchising may seem to be a natural business practices, it is not without its share of benefits and hindrances. In the case of benefits, franchised firms have their brand’s pre-attached reputation which facilitates attracting customers as they already know the brand compared to an independent establishment. This assists in reducing advertising costs as they are spread nationwide and does not require introducing customers to the brand....   [tags: Business, Marketing, Management, Franchising]

Research Papers
753 words (2.2 pages)

Franchising Subway Essay

- Franchising Subway Franchising has attracted some 34,000 people in the UK to invest in their future in self employment. Here are 15 reasons why franchises offer an attractive business opportunity. 1. Established brand value. Prior to launching a franchise, the franchisor has developed and established attractive and meaningful branding for the operation, and as the network of franchisees expands the national recognition of this brand grows. When a franchisee enters into a mature franchisee network, they will benefit from the national name recognition the brand has built when it comes to their own marketing initiatives, while even new launch franchises have invested in professionally designed...   [tags: Subway Business Franchising]

Research Papers
1608 words (4.6 pages)

Essay Exploration of Franchising

- Exploration of Franchising Definition Franchising offers an excellent opportunity for you to be in business for yourself. When you hear the word " Franchise" you probably think of fast food restaurants such as Burger King, McDonald's or Subway. But the truth is Franchising is so much wider than that. In simplistic terms, franchising is where a successful business format is replicated. This will involve the setting down into an operations manual all the systems and procedures that the business owner has found gives them the best chance of success....   [tags: Papers]

Research Papers
1025 words (2.9 pages)

Citizenship Identity in Turkey Essay

- The Politics of Citizenship by Drawing Borders: Foreign Policy and the Construction of National Citizenship Identity in Turkey As far as the transitional period from the Ottoman Empire to the Turkish Republic is concerned, one of the crucial areas in which the impact of foreign policy has been observed is the building of national citizenship identity in Turkey. This is in terms of its relation not only to Turkish modernity but also to the process of nation-building that has considerable potential for producing political change because of the disruption it introduces into the established patterns of international relations....   [tags: Politics History Turkey]

Free Essays
1252 words (3.6 pages)

Turkey and the European Union Essay examples

- Turkey and the European Union Let us begin this by looking at what the EU wants from Turkey. The criteria for EU membership adopted by the Copenhagen European Council in June 1993 require that a candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights, and respect for and protection of minorities; has a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union; and has the ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary union....   [tags: Turkey Foreign Affairs Europe Essays]

Free Essays
612 words (1.7 pages)

Essay about Franchising

- Franchising A franchise, by definition is a legal agreement that allows one organization with a product, idea, name or trademark to grant certain rights and information about operating a business to an independent business owner. In return, the business owner (franchisee) pays a fee and royalties to the owner. This one-time fee paid by the franchisee to the franchisor is referred to as a franchise fee. The fee pays for the business concept, rights to use trademarks, management assistance and other services from the franchisor....   [tags: GCSE Business Marketing Coursework]

Research Papers
1407 words (4 pages)

NUMBER OF FRANCHISORS IN TURKEY

YEARS NUMBER

1993 36
1995 44
1996 73
1999 200
2000 300

Source:National Franchise Association

According to the table above , the number of fanchisors increased from 36 in 1993 to 200 in 1999 and then it reached 300 in 2000.That shows every year , number of franchisors increase significantly.

NUMBER OF FRANCİSEES IN TURKEY

YEARS NUMBER

1993 663
1994 1011
1997 2500
1999 6000
2000 10,000

Source:National Franchise Association

According to the table above , number of franchisees rose dramatically to 6000 in 1999 from 663 in 1993 and that table shows , franchising system provides job every year to much more people in Turkey.

The franchising system also improves the working women rate in Turkey.In that system , there are so many working women and so many women owner working because the system is providing them better job condition. Women can work or manage their job easily.Most of francisees more than 4000 in Turkey are owned by women and young entrepreneurs.According to National Franchise Association's report (2000)(UFRAD) the owners of nearly 1000 franchisees are women and they aged between 30 and 40 (p.28) Us Department of Commerce (1999) stated that ''educated women who wish to break the traditional subordinate roles in business are increasingly turning to franchise operations to prove their independence and business ability'' (p.28).It is also stated that most franchisees in the apparel sector are young women with university degrees.This system increses working working women rate and provide them good jobs and that is important for Turkey.

The other adventage of Franchising system in Turkey is that competition between foreign franchisors and domestic campanies improves their goods and services.For example Arçelik is one of the most successful Turkish campany in foreign markets because this campany provides better products , services , advertising and business strategies to compite foreign franchisors so , Arçelik developed itself and opened to work market easily.Zorlu in his dissertation cited from F.Bilge (2000) that ''Arçelik is a major household elecrical products manufacturer , is recently converting its 1000 dealers into franchisees'' (p.26) .That shows , Arçelik is a successful company toward foreign franchisors and it has continued to grow.Therefore that shows , Arçelik used the right business plans to continue to grow.Against the foreign franchisors Turkish campanies doveloped themselves to compete them so , they try to improves thier products and services.

Another important adventage of competition between foreign franchisors and domestic campanies is that competition causes prices go down.These campanies also try to decrease their costs because the campanies want to sell their products or services cheaper to have more customer and to have more profit.Although prices of local campanies are cheaper and they try to use better business methods , many consumers buy foreign franchisors products but foreign franchisors also decrease their prices.According to UFRAD (2000) ''local campanies are genarelly successful in the market.However , it is also expressed that local campanies can not compete with foreign franchisors easily but that competition led to decrease the prices and it is aslo believed foreign franchisors are more preferred because they have latest technology , management and well-known brand names''(p.34).That shows ,although Turkish campanies can not compete foreign franchisors easily they continue struggle against the foreign franchisors.Competition helps Turkish market because many people can buy products which have good quality.

The other adventage of franchising system in Turkey is benefits of being a global campany.This is very important for a campany because being a global campany brings that campany an international nationaly known brand name.There are some Turkish campanies which are known in every country in the world.For example Beko , Vestel , Mavi Jeans , Zeki , Sarar ,Turkcell and Arçelik...Mavi jeans is one of the widely known Turkish campany and that campany sells its brand name to every country. Mavi jeans started to compete with international campanies in 2000 and Mavi developed suddenly although it does not accept all offers for franchising

NUMBER OF MAVİ JEANS STORES IN THE WORLD

YEARS NUMBER

2000 120
2003 196
2004 308
2005 500

Source:Mavi Jeans

According to table above , number of Mavi Jeans stores in outside the Turkey entired to international markets in 2000 opened 120 stores and these stores continued to grow every year and then two years age these stores reached 500 stores.that shows Mavi Jeans have internationally known brand name and it will continue to grow.

Arçelik is another international Turkish company and although it had some important economical problems it entired to international market in 2001.That helped it so , Arçelik could achieve their economical problems and it continued to grow.According to Milliyet Gazetesi (2001/08/29) ''ever year more franchisors want to sell Arçelik's products (%10-%15) so Arçelik have internationally-known brand name and last years, there are big demand for the products in the market (%20)''.That is very important for Turkish campanies to be global campany because being global campany brings it internationally brand name and provides it bigger market in the world.

Other adventage of being global campany is that Turkish campanies which sell their products abroad helps the reduce balance of trade deficit in Turkey.This is very important for Turkey because Turkey has balance deficit namely Turkey can not exporting enough according to its imports.According to Prof. Dr. Selahattin Tuncer (2003) claim that '' in 2003 Turkey's trade deficit increased %47.1 and it reached to 21.8 billion dolars and it is known that in 2001 , Turkey's trade deficit was 27.3 billion dolars and although

Turkey earned 13.2 billion dolars from tourism this is not enough to reduce balance of trade deficit in 2003''That shows , although Turkey earns money from tourism this in not enough.There are some Turkish campanies which sell their products and services in international markets so , they help to reduce balance of trade deficit like Arçelik , Mavi Jeans , Vestel and Zeki but that table shows Turkey needs more campanies to reduce that.International Turkish campanies help the decrease of trade deficit and they provide foreign currency for Turkey.
In conclution , Franchising system is a profitable and useful business activity for Turkey.This systemprovides some economic adventages for Turkey such as it creates job opportunity , competition benefits and being a global campany .That system led to increasing of working people rate and working women rate.Therefore , competition between foreign and domestic campanies improve the quality of goods ,services and decrease the prices of goods.Turkish global campanies also help decreasing of trade deficit and these campanies brings Turkey many foreign currency.Thus , Franchisors and the system will continue to grow so, more and more people can find job and the market will continue developing.For Turkish economy this is necessary and that system brings many adventages.
Bibliography

Zorlu ,D. (2000). Fast food franchising marketing in Turkey and the potential conflicts between franchisors

and franchisees.Unpublished master thesis.

University of Hertfordshire , London , England

Dış Ticaret Açığı.(Balance of trade deficit) (n.d). Retrieved April 24 , 2007 , from

www.anadolubil.edu.tr/default.asp?Sayfa=557

Girişimci Bayilik. (Entrepreneur vendor) (n.d). Retrieved April 20 , 2007 from

www.capitol.com.tr/haber.aspx?HBR_KOD=875

http://www.franchising-tr.com (15 June 2001)
Return to 123HelpMe.com