As we know, there are five main ways of entering an oversea market: export, franchising, strategic alliance, joint venture or direct investment. There are lots of factors, which may influence companies’ choices. For example, how many investment budget the company has, what kind of products the company produces and the strategy position of the new market are quite important aspects that companies should pay lots of attention to.

I agree with Yui’s claim about the Papa John’s in China. In my mind, we can analyze Papa John’s strategy in China by the three aspects we mentioned before. First of all, how many investment budget Papa John’s has. Papa John’s is the third largest pizza restaurant chain in the US with 61 million net income in 2012. As the CEO of Papa John’s said, they target China as one of its main market. Based on the cash flow and strategy, Papa John’s should have enough budget for their expansion in China with different methods like franchising and direct investment. The second one is that what Papa John’s sell. As a pizza restaurant, it provides food for eating in store, take-out and delivery. For this kind of business model, location and effective marketing methods are quite important. However, Papa John’s rent out the authorization right of the brand to another company in Shanghai. In this case, Papa John’s lose control of the selection of the store location, the uniform marketing strategy and core brand value. The worse thing is that the company in Shanghai does not check the ability of franchiser in order to make more money. The result is that more and more stores closed because of operating deficit.

I believe that every measure of entering a global market is useful for specific situations of companies. Thus, companies should analyze its own statements before choosing the method.