Executive insight: evaluating the market size for service franchising in emerging markets
Abstract
Purpose
The purpose of this article is to propose a framework for analyzing the comparative economic market size for service franchisors in emerging markets using current and available data from the World Bank.
Design/methodology/approach
Data is transformed through simple manipulations to derive information‐filled rankings of 20 popular emerging markets. Emerging markets constitute the largest and most dynamic markets for international franchisors.
Findings
The findings show that Brazil, Russia, and Mexico outranked China and India as the markets with the largest economies for service franchising. Future research should enhance the economic analysis and measures developed in the article and use them in conjunction with other environmental, industry, and company variables to estimate the market potential and select the appropriate markets for entry.
Practical implications
Attempting to estimate the market size of emerging markets is often only the first step in international market selection.
Originality/value
This paper encourages managers to think beyond simple measures of market size when considering the attractiveness of franchising opportunities which hitherto has been under‐emphasized in the extant literature.
Keywords
Citation
Alon, I. (2006), "Executive insight: evaluating the market size for service franchising in emerging markets", International Journal of Emerging Markets, Vol. 1 No. 1, pp. 9-20. https://doi.org/10.1108/17468800610644979
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited