Plumbing Industry: Roto-Rooter's Foreign Expansion

1975 Words8 Pages
Expanding operations into a foreign market can be difficult, even for the largest plumbing company on the planet. Roto-Rooter expanded their operations worldwide by licensing master franchises Canada, Australia, Japan, China, the Philippines and Indonesia to add to their well established North American locations. To understand the challenges faced by Roto-Rooter, a plumbing industry analysis must be done for North America, Indonesia and the Philippines. The cultural differences between the three areas must be examined to determine how challenging it will be for Roto-Rooter to thrive in these global markets. A complete breakdown of the entry strategy is needed to understand the planning process for Roto-Rooter. Since it has been twenty Years since Roto-Rooter has entered these markets, a retroactive study must be made to determine if they were successful. After a look back, it can be determined if there is anything they could have done better. Industry Overview Plumbing is a service based industry that is divided into two segments, installation and repair. Installation consists of the installation, design and maintenance of commercial and residential potable and waste water systems. Repair is anything dealing with retrofitting or maintaining those systems, whether it is on a planned or emergency basis. Plumbing was found to be critical in the late 1800s when it was found that microorganisms were making the population sickly. Moving waste water out and clean water into homes provided the sanitation necessary to mitigate these sicknesses. Various new materials and technologies have revolutionized the plumbing industry, in functionality, speed of installation and speed of use. The integration of computers with plumbing has made the ... ... middle of paper ... ..._print.php?CID=1&AID=362 Gray, D. (n.d.). EXPANDING YOUR FRANCHISE SYSTEM INTO CANADA.Expanding your Franchise System into Canada. Retrieved May 13, 2014, from http://www.franchise-chat.com/resources/franchising_in_canada.htm Top 10 challenges of doing business in Indonesia. (2013, July 22). Top 10 challenges of doing business in Indonesia. Retrieved May 16, 2014, from http://www.tmf-group.com/en/media-centre/resources/top-challenges/apac/indonesia Top 10 challenges of doing business in The Philippines. (2013, July 23). Top 10 challenges of doing business in The Philippines. Retrieved May 16, 2014, from http://www.tmf-group.com/en/media-centre/resources/top-challenges/apac/philippines Plumbing in the US: Market Research Report. (2013, December). Plumbing in the US Market Research. Retrieved May 17, 2014, from http://www.ibisworld.com/industry/default.aspx?indid=1946

    More about Plumbing Industry: Roto-Rooter's Foreign Expansion

      Open Document