Identifying strategic groups: an assessment in mexican franchises

Abstract

The formation of strategic groups in the franchising sector has been previously documented in the context of different countries. Our proposal is the franchise industry in Mexico should be formed by groups of differentiated franchisors. The identification and analysis of the different strategic groups formed in the franchise system of the Mexican market is the objective of this research. Our evaluation was performed using the factor analysis technique in a sample of 167 franchises of national origin. Seven strategic dimensions supported by the theory of scarce resources and agency theory make up the existence of differentiated groups of franchisors in the Mexican market. Our research confirmed the identification of five strategic groups called: rapid growth, converters, experienced and international franchisors, high entry fees and expensive conservatives, which use differentiated strategies to compete in the Mexican market.