1.

0 MARKET ENTRY STRATEGY

Based on the information analyzed in conjunction with Boost’s standard operating procedures

(SoP) as indicated earlier, the chosen market entry strategy for Maldives is via franchising.

Franchising offers mutual benefits. In this context, Boost stands to gain from expanding

operations with comparatively minimum investment, as opposed to subsidiary or green-field

ventures. It is also possible to harness the Maldivian franchisees’ efforts to maximize utility.

Compared to rudimentary permissions to use products and technology via licensing,

franchising is far more comprehensive; with ‘business format franchise’ types, the package

along with products and trademarks come with the franchisors’ marketing plans, SoPs, training,

financial assistance, quality assurances and more (Belu & Cărăgin, 2008; Kotabe & Helsen,

2014). This, along with performance based profit clauses can garner motivation and

commitment from the franchisee. More importantly, the franchisees’ better understanding of

local macro and business environment is greatly advantageous (Kotabe & Helsen, 2014). Boost

can avoid much trial and error risks by accessing this knowledge advantage. This is particularly

significant given that Maldives has had no Boost operations prior, nor is it a country with prior

healthy juice bar markets established. Boost is in a position of first mover, and for this, local

knowledge and expertise is crucial for initial success.

It can be argued that franchising in Maldives poses risks. One argument is that the franchisor

is at risk having lack of control over the franchisee—it depends on them to execute strategies

and operate effectively (Belu & Cărăgin, 2008). This dependency can appear problematic.

Additionally, there is the risk of choosing inexperienced, unsuitable partners (Keegan, 2014).

However, a comprehensive and performance based reward inclusive franchise package can

stimulate positive performance. In short, the main issues here are resolvable if a suitable

franchisee is selected.
For this, Lily International ltd (Lily) is proposed as the recommended master franchisee. Lily

is a highly successful private company primarily engaged in F&B import and distribution

activities in Maldives, and in 2011 branched out to franchise activities (Lily International,

2017). Lily is no stranger to franchisee activities, having successfully introduced Malaysia’s

Marrybrown and Secret Recipe in 2011 and 2016 respectively to Maldives (MVHotels, 2016).

Furthermore, their rapid expansion of franchise operations indicates financial strength and

willingness to engage in franchisee positions, which is assuring for Boost’s market entry into

Maldives.

After careful considerations and due diligence, franchising is chosen as the method of entry for the
Maldivian market. One of the main ways Tutti-Frutti have expanded throughout the globe is through
franchising and this model have be proven a success. A market disruptive business model can be
applied as there is a huge market for healthy snacks in Maldives but the market has been not tapped
into.

 New-Market Disruption— targets customers who have needs that have been unserved by existing
companies. Apple’s iTunes application is one such example