International-Business-Dr-R-Chandran-E-book

FRANCHISEE
FEE
FRANCHISE
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SELECT
FRNCHISEE
20
International Business- Dr. R. Chandran
Sometimes the franchisers initiate the process where the economy is on
boom. In many developing nations, franchisees initiate the process and
they are forced to bear all the expenses.
4. CONTRACT MANUFACTURING
Well-known creator with
brand command can
become strong franchiser
En cashes on the past &
present efforts
Invests on all the
resources
Many companies outsource their products and concentrate mainly on
marketing operations. Contract manufacturing is the strategy of
identifying a manufacturing unit to produce items at a competitive price
in any part of the world. Nike is procuring its athletic footwear in a
number of factories in South East Asia. Mega Toys is sourcing from
China. Hundreds of international companies with their origin in European
countries have selected manufacturing centers in India, China and South
East Asia. Mark and Spencer, J.C. penny, Target and H & M have
contract manufacturing arrangements in many parts of the world.
Contract manufacturing with a dimension in the service sector offer
ample opportunities for Indian companies in the form of BUSINESS
PROCESS OUTSOURCING (BPO) and KNOWLEDGE PROCESS
OUTSOURCING (KPO).
All the developed nations are becoming end user of outsourced products
and services of developing nations.
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