PROPOSED FRANCHISE BUSINESS STRATEGY IN EDELWOSH LAUNDRY THROUGH BENCHMARKING APPROACH (CASE STUDY: SHOES &CARE, KOLEGA BARBERSHOP, AND JOSS LAUNDRY)

• Main Author: Auliya Ramadhan, Faiz
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71657
• Institution: Institut Teknologi Bandung

In recent decades there has been a significant increase in the number of franchised companies around the world. Franchising is one of the forms of business that is growing quickly in the world and is useful for studies in the field of entrepreneurship because it plays a significant role in supporting economic development by generating employment opportunities, fostering the growth of entrepreneurship, and raising living standards. Between the period of 2000 to 2004, Indonesia has significant number of local franchise business growth in around 60% and 27.35% for foreign franchise business which has a negative growth in the year 2003 Even though in the situation of pandemic Covid-19, Franchise industry still have 3% of growth. Currently, there are 93,372 franchise industrial outlets in Indonesia. By these data, the total revenue through franchise industry reached around IDR 54.4 billion. However, by the development of franchise business in Indonesia, the government regulates the franchise system in article 4 chapter (1) of Law no. 42 years 2007 which stipulates that: Franchising is carried out based on the written agreement between the franchisor and the franchisee with due regard to the law in Indonesia. However, the research discusses the develop plan of Edelwosh Laundry as a start-up company through franchise system. The choosing of franchise system as a one of business strategy to develop the company because franchises are expected to offer better financial performance, a more supportive work environment, and/or better survival potential than other forms of organization Lacking knowledge in term of create franchise strategy make the author put several company that have been success using franchise strategy such as Shoes & Care, Kolega Barbershop, and Joss Laundry as a benchmark company. These three benchmark companies are focused on the service business company. So, there will be not really different factors from internal and external that affected to the result. The main objective of the study was to choose suitable franchise strategy for Edelwosh Laundry from benchmark companies. The knowledge base for make the franchise strategy is from the business process. The business process of franchise that used in this final project consist of make a business system, Franchising marketing plan, legality document, supporting franchisee, and manage the system. In term of data collection, researcher using interviews as the qualitative data collection methods. By choosing qualitative the author will be gathering the franchise strategy data of resource company through business process more detail. The interviews are conducted to the board director of the company. The data were subjected to within-case and cross-case comparative analysis. Different business strategy has different effects on the result, as perceived by franchisors and franchisee. The analyse revealed how each company have their own strategy from attracting people to become franchisee, supporting franchisee, until control the system. The analysis resulted a combination of business franchise strategy from 3 benchmark companies that have been adjusted with Edelwosh Laundry’s internal and external factors.