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Dunkin Donuts International Strategy

902 Words4 Pages

Current expansion strategic Dunkin donuts has entered into a long-term master franchise agreement with Golden Cup Pte Ltd, a joint venture between Jasmine Asset Holding Ltd and Jollibee Worldwide Pte Ltd. Dunkin donuts and Golden cup plan to open more than 1400 Dunkin donuts outlets across China over the next 20 year. The joint venture franchising has exclusive rights to expand Dunkin’ Donuts in new territories, including Beijing, Chongqing, Fujian, Guangdong, Guangxi, Hainan, Hebei, Heilongjiang, Hong Kong, Hunan, Jiangxi, Jilin, Macau, Shanxi, Sichuan, Tianjin and Yunnan. (Dunkin Donuts , 2015) Joint venture franchising is mean a franchisor enters into a joint venture agreement with an indigenous business entity or entrepreneur for the purpose of establishing and developing the franchisor's business system. (World Franchise Associates , n.d.) Dunkin Donuts choose the joint venture franchising to enter China market can reduce sensitivity to cultural, political and economic risk. Other than that, the franchisees are more familiar with domestic law system, language, business culture and …show more content…

Therefore, the market size is one of the main reason for Dunkin Donuts expand the business to China market. Besides, china is the second largest economy is the world according to Gross Domestic Product. In 2012, China GDP (current prices, US dollars) was US$8.227 trillion. (Team, 2013)China was one for the fastest economy growing country in the world. In 2013, China per capital income was 18,311 yuan (US$2,993) and in certain economically advances cities such as Beijing, Shanghai and Hong Kong, the average per capita income is more than 26,000yuan (US$3810). In China, people will spend average 37.9 percent of income on household and 43.7 percent on food. Therefore, China is potential market to food and beverage industry like Dunkin donuts. (Lu,

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