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Mo'men Launches Franchises in EUA.

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by

Daniela Guzzi

on 18 March 2014

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Transcript of Mo'men Launches Franchises in EUA.

Background
Mo´men= "believer", faithfull.
Fast food restaurant chain based in Cairo, Egypt.
Founder s: Mo´men brothers.
Opened its first restaurant in 1988.
62 restaurants nowadays internationally.
9 million customers in Egypt 15% market share in fast food market.
Global Market Entry Strategies.
Started expanding internationally after rebranding in 2008
Historical to Trendy
Major Strategy
Licensing: Franchising
Investment: Joint Venture

Definitions....

Case 9-1
Mo'men Launches Franchises in UAE.

Daniela Guzzi.
Timo Ding.
Mo’men Restaraunts
High-quality food and quick service at a competitive price
Specializes in sandwiches
Bread is the most important in Egyptian meals
Islamic identity: Halal and No pork


Franchising
A franchise is a contract between a parent company, the franchiser, and a franshisee that allows the franchisee to operate a business developed by the franchiser in return for a fee and adherence to franchise'wide policies and practices.
....

Joint Venture:
It is an entry strategy for a single target country in which the partners share ownership of a newly created business entity.
Advantages:

Risk sharing
Learn about the new market environment
Combining the strengths.
Significant Disadvantages.
share rewards as well as risks
potential for conflict between partners. (cultural differences)
discussion of licensing (the partner can envolve into a stronger competitor.)
UAE
Entered a long-term $21 million joint venture with Al Islami Group of the UAE to market.
Al Islami Group---Leading halal food producer in the Middle East
First franchised outlet opened in Sharjah
Goal: to open a total of 20 across the UAE
Malaysia.
freedom of religion guaranteed by the constitution while Islam is the state religion.
Adapting:

Rice menu
Delivery Service
Various promotion.
Questions...
Do you think that Mo´men Group´s franchising strategy is the best way to expand internationally?
Is having a rice menu in Mo´men Malaysia restaurants a good decision?
In the long run, who is more likely to garner the most market share in Malaysia -- Local restaurants, or will Mo´men be able to succeed and build a powerful brand?
Full transcript