Emerging Markets Case Study - Mothercare International Expansion

Its sometimes quite tricky finding well-resourced examples of international expansion - but this is a good one.  Mothercare has quietly adopted a strategy of repositioning its group by focusing on expansion into emerging markets like India, Russia and China using its two “global brands” (Mothercare and Early Learning Centre). It has set itself an objective of opening at least 100 international stores every year, using the franchise model of operation.

This streamed revision presentation provides a collection of stimulus materials which students could use to discuss Mothercare’s strategy.  I have brought together some materials from a variety of sources, including press cuttings, annual reports and analyst presentations.

Launch streamed presentation on Mothercare’s International Expansion Strategy

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McDonalds Tells Iceland - Burger Off

Are the forces of globalisation in retreat? Consumers in Iceland are about to join those in Albania and Bosnia and Herzegovina - they will no longer be able to buy a Big Mac.

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Franchisees - An Example of When Things Go Wrong

Franchises are now a common feature of the business curriculum, and the textbooks generally paint a very positive picture of how they work.  But things can, and do, go wrong.  Here’s a great example....

East Coast Rail Line is Nationalised

The government is taking the East Coast rail line that runs from London to Edinburgh and which has been operated by National Express into public ownership. National Express has struggled with falling revenues and higher costs that have contributed to rising losses on the line. In a press release, National Express said that higher hedged fuel costs added £11 million of cost in the first half of 2009, while increased pension costs cost the business a further £3 million.

Investment appraisal in the rail industry - Branson wants to take the long-term view

A fascinating and useful short video interview with Richard Branson discusses the business/investment case for allowing Virgin Rail to be granted a longer rail franchise…

Q&A - What are the disadvantages to a start-up of setting up as a franchise?

Whilst starting a business as a franchise is traditionally seen as a lower-risk approach, there are some significant disadvantages to consider:

Q&A - What are the advantages to a start-up of being a franchise?

For a start-up entrepreneur, there are several advantages to investing in a franchise:

Q&A - What is franchising?

A business idea for a start-up doesn’t have to be original. Many new businesses are formed with the intention of offering an existing business idea.  The use of franchises is a great example of that.

Domino’s Pizza - a classic growth story with some stunning new numbers

Domino’s Pizza has just released its full-year financial results for 2008.  They look stunning…

Video case study - Tiffinbites and the curry franchise

Can Tiffinbites make a success of their franchised curry restaurant product in a market that is dominated by small family-owned enterprises?

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