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Focus Strategy

Strategic plan under which a firm concentrates its resources on entering or expanding in a narrow market or industry segment. It is usually employed where the firm knows its market segment and has products to competitively satisfy its needs. Focus strategy is one of three generic marketing strategies that can be adopted by any firm.

Foreign Direct Investment (FDI)

FDI is the process whereby one company from one country makes a physical investment into building e.g. a factory in another country; in short it is the establishment of an enterprise by a foreigner.

Franchising

Arrangement where one party (the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. The franchisee usually pays a one-time franchise fee plus a percentage of sales revenue as royalty, and gains (1) immediate name recognition, (2) tried and tested products, (3) standard building design and décor, (4) detailed techniques in running and promoting the business, (5) training of employees, and (6) ongoing help in promoting and upgrading of the products. The franchiser gains rapid expansion of business and earnings at minimum capital outlay. (http://www.businessdictionary.com/definition/franchising.html)

 

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