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Whither franchising? The case of Avis Europe PLC
Author(s) -
Jacobsen Lowell R.
Publication year - 2004
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.1183
Subject(s) - consolidation (business) , dominance (genetics) , maturity (psychological) , economics , entrepreneurship , market economy , industrial organization , principal (computer security) , business , economic geography , accounting , finance , political science , biochemistry , chemistry , law , gene , computer science , operating system
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, efficiency‐oriented 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 © 2004 John Wiley & Sons, Ltd.