Marketing Strategy : Chick Fil

1373 WordsOct 27, 20166 Pages
Expansion Strategy Multinational companies opt to franchise as a way of expansion strategy (Siebert, n.d.). Chick-fil-A is dominant only in the US market. The firm has only ventured into the Canadian market in the airport of Calgary. Many United States Corporations have engaged in franchising in the United States as a form of the expansion strategy. Laws concerning franchising are neither strict in Canada. Our form of non-equity mode will be franchising, therefore our form of entry will be a small-scale entry. This will allow our company to get exposure in key locations and learn from Canadian consumers. The benefit to franchising at first is that it is less costly and less risky for the franchisor. The management thinks the best way to enter the said market is through franchise. Due to its already established brand name, there is likelihood of many investors wishing to be associated with its name and reputation. The Christian foundation which Chick-fil-A associates is an added advantage to its quest to franchise in Canada. Franchising will enable the company enter into relationships with distinct franchisees and provide them with license to operate restaurants bearing its name and selling chicken products that the company sell to its consumers in the US. The chicken industry in Canada is profitable. Due to its most working population, they prefer fast food of high quality value. Franchise ownership on the other hand is the most preferred form of investment instead of
Open Document