Monday, January 14, 2008

The Franchise Route and Technology Products

There is a huge technology market in the world ready to be tapped by the right brains. One way is to create gadgets which are so user friendly that people are able to use it even if they are not educated. Take for example if a computer is invented which does comon tasks such as playing music and running customised programmes then a vast swathe of Rural folks of the Emerging economy and third world become your Customers automatically. This could be done through creating simpler interfaces like local language voice input and cheaper computers, if brain signals could be tapped it would lead to certainly more benefits.

Hense taking into account that there is a large legion of untapped customers if only we had the right product whcih would meet their needs. So you dont have that much capital to spend as there is a market even wih current product portfolio. So what do you do?

Easy way out, take the franchisee route. Sort of renting your brand to people who can invest with profit sharing. But it does has its own problems. You need to agree to SLA's on both the sides at the Contract stage itself.

ie how often and how much help you will provide to franchisee and how franchisee should maintain the standard of product or service so as to not to dilute the value of the Brand.

This is easier done with products as the quality can be delivered consistently.

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