Contributions to Management Science, 2008, II, Part 1, 127-145, DOI: 10.1007/978-3-7908-2058-4_8

New Challenges for Store Location in a Plural Form Network: An Exploratory Study

Gérard Cliquet

View Related Documents

Abstract

The development of retail and service networks implies new location models that explicitly include store ownership issues. The implementation of plural form networks has changed the dimensions of the store location problem. Traditional store location models do not take into account the ownership form choice as it emerges in a plural form network, considering either a strictly franchised or a strictly company-owned chain. Only one model has dealt with the problem of plurality or dual ownership in earlier research, nearly 20 years ago when knowledge of plural form networks was very limited. In a modeling process of store location involving the ownership choice, two main research questions should be solved, which indeed do constitute real challenges: (1) Is this modeling process identical for any kind of network? (2) How can ownership issues be integrated in a location model, and in what kind of model? This paper is an attempt to answer the first question by means of an exploratory survey of eighteen network development managers. Moreover, I investigate the store location decision process and emphasize the variables believed to influence it. I propose a typology of the location processes and make some suggestions relating to the choice of a location model, depending on the location decision process and the strategy of the chain.

Keywords  Company-owned systems - Franchising - Location model - Plural form - Retail and service network

Fulltext Preview

Image of the first page of the fulltext document