MODES OF ENTRY

Cryos Case Study- Modes of Entry

Cryos Case Study- Modes of Entry

Quesiton 1)

Franchising as a mode of entry for Cryos

The best known type of franchise is the business format franchise. The franchisee buys a licence to trade under the existing business name from the franchisor. (Kotler, 2006, pp74) Under the Franchise Agreement one Entity (the franchisor) grants to another Entity (the franchisee) the right to deliver goods and services to the marketplace under the franchisor's trademark or trade name in exchange for a license fee. In this case Cryos provides the franchisee with a proven business system covering the supply of products, equipment and training thereby keeping a degree of control over the way in which goods and services are marketed.

Advantages of a Franchise for Cryos

Franchises offer Cryos the chance to go into business yourself even if you are lacking in capital or business experience.

Franchises provide a head start to the Cryos by providing support on an as-needed basis

Franchises have interest in Cryos Success. Many offer extended training and assistance with business set-up, personal training, collective buying power, and advertising.

Disadvantages of a Franchise for Cryos

* The cost of buying the contract for the business can be very expensive for Cryos.

* Profits which are made have a certain percentage that are given to the franchisor. (Kotler, 2006, pp74)

Question 2)

Culture & its characteristics

Culture can influence the business in different ways. The company must be able to handle these difficulties in a way that is satisfying also for the other part. Mistakes can be difficult to correct and disrespect for the foreign culture can destroy the entire operation. (Cateora, 2009, pp45) The number of companies operating internationally is growing constantly. Because of high competition, the companies operating abroad are faced with a much larger task than before.

5 ways that Cryos ...