Days Outstanding Jewelry Company Franchising Strategy Study

As a very popular business model, franchise is very important toenterprises' rapid expansion. Having analyzed the environment and itsresource and capability, the paper analyses the existing problems andtheir reasons that Tianjie company have met on the way to expanding itsfranchise system and brings forward countermeasures from the aspect ofbusiness model and profit model.As to franchise business model, there are primary and advancephrases of it. Accordingly, there are "primary profit model" and "advanceprofit model" respectively. The former model's profit depends on productand the latter is "invisible-capital".The operation strategy of Tianjie is based on "primary profit model".That is it just earns primary franchise fee and the criteria of enrollmentdealers is too low. Furthermore it more depends on its product sale.Therefore, its franchise performance is not good enough to meet itsexpectation.In order to solve this problem, Tianjie company should try its best totransform its profit model, namely, change its existing "primary profitmodel" to "advanced profit model". Concretely, it should promote itsbrand and develop proprietary technology. Further, it should strengthcompany management ability and the support ability to its dealers. Inaddition, it should expand other sale ways besides franchise.