Essay on Business Studies - Case Study What a Spectacle

782 WordsDec 21, 20134 Pages
Chapter 2: Generating and Protecting Business Ideas Case Study – What a Spectacle! (p13 - p22) 1. A Franchise is when a franchisor of a business gives the franchisee of another business the right to supply its product or service under the same brand identity. Specsavers is a very successful franchise for example. 2. Apart from franchising, two sources of business ideas are identifying a market niche which involves noticing that something is missing from the market or that can be improved on. Also spotting trends and anticipating their impact which involves creating or develop a product or service to suit patterns or trends in the market. 3. The first benefit of Stephen Halpin taking on a boots franchise business is that they…show more content…
However, opening a Boots franchise is a high risk as the original Boots was obviously not making enough money to survive and Halpin is opening under the same business name so the chances of gaining a reasonably high profit from selling the same products and services is unlikely. Glasses Direct was at a high risk as Murray Wells is only 22 and still at university and so he started the business through his £1000 student loan. This means that he has to earn enough to gain a profit allowing the business to survive as well as paying off his student loan. Finally, Glasses Direct is an online store and so Murray doesn’t have to pay rent or electric bills meaning that overall he had lower outflows than Halpin because Halpin has to pay rent and electricity bills. 6. The web-based, Glasses Direct business may have more potential to grow than a Boots franchise as Halpin can make his own decisions about the business allowing further growth. Also selling online means that he can sell his products globally but the cost of delivery and advertising will increase. Furthermore, Murray has the choice to add new suppliers to sell a different range of products unlike boots because in the franchise agreement all Boots stores have to sell the same products. Also, Glasses Direct sell much
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