Hybrid organizational forms such as franchise systems join two or more independent parties under a contract. The ability of each party to achieve its goals depend upon the relative bargaining power in the relationship established by the contract. Using transaction cost economics and Porter's (1980)
Whither franchising? The case of Avis Europe PLC
β Scribed by Lowell R. Jacobsen
- Publisher
- John Wiley and Sons
- Year
- 2004
- Tongue
- English
- Weight
- 128 KB
- Volume
- 25
- Category
- Article
- ISSN
- 0143-6570
- DOI
- 10.1002/mde.1183
No coin nor oath required. For personal study only.
β¦ Synopsis
Abstract
This case study of Avis Europe PLC examines the diminished role of franchising in the vehicle leasing firm's achievement of market dominance in Europe. Market maturity, industry consolidation, adoption of centralised, efficiencyβoriented technologies, and strategic alliances are the principal factors in accounting for the decline in the reliance on franchisees for local entrepreneurship and market expansion. Though many theories of franchising find at least some support in this study, the life cycle or ownership redirection explanation proves particularly compelling. Copyright Β© 2004 John Wiley & Sons, Ltd.
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