Alfamart Towards The Largest Retail Distribution Network in Indonesia by 2012 : Reviewing the Franchising Channel Growth Strategy: Attractive, Profitability, and issues for franchisees

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Christanmas, Cosmas and Naibaho, Eduard Ary Binsar and Ellis, Michael and Shiantaraga (2005) Alfamart Towards The Largest Retail Distribution Network in Indonesia by 2012 : Reviewing the Franchising Channel Growth Strategy: Attractive, Profitability, and issues for franchisees. Project Report. UNSPECIFIED, Jakarta. (Unpublished)

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Abstract

The subject of the GFP is an analysis of the feasibility of using the franchising scheme for growing a large local chain of minimarts, ie. Alfamart. It will analyze whether or not the current growth model is achievable given the current market conditions, if the current franchising scheme is adequate and what adjustments or modification are needed to make the scheme successful. The study was conducted through field data collection by interviewing Alfamart franchisees, traditional market owners; and internet surfing to understand how some overseas franchising systems work. The first part of the report will describe the Study Objectives and Scope of this Study: Methodology of the research, Industry where Alfamart is operating and Alfamart profile itself. Next, all field findings are presented in simple table to show it in quantitative manner, followed by a SWOT (Strength, Weakness, Opportunity, and Threat) analysis. With reference to overscas franchising systems, the study concludes that growing Alfamart distribution network is feasible with conditions, among others are the needs to improve its marketing communication, investors selection process, services and support quality, internal readiness, as well as business reputation in retail industry. Alfamart franchising system itself has been successful in most cases, by achieving 9 franchise stores and 82 Independent Operator stores, both giving a total of 16% off the overall outlet network within the first 3 years since the system was launched data up ta August 2005. The target of 5,000 outlets by year 2012 is seemed achievahle, looking at the needs of around 100 outlets in Java island only Franchising system is an effective strategy to expand the business network with minimum capital investment and leveraging Alfamarts's strength as a leader in distribution with relatively low risk to Alfamart itself. The study report alsa proposes a number of recommendations raised by the interviewees in all areas metioned above.

Item Type: Monograph (Project Report)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Library > GFP (Group Field Project)
Depositing User: Dede Faujiah
Date Deposited: 16 Jan 2020 10:46
Last Modified: 22 Jan 2020 02:40
URI: http://repository.ipmi.ac.id/id/eprint/287

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