| dc.description.abstract | Chain business model has become an important mean for companies to improve market competitiveness and sustain survival. It allows businesses to expand market scopes and achieve, economies of scale. Expanded businesses can in terms, reduce fixed costs, strengthen brand image, and boost popularity. The key for a chain business to enter a new market depends on whether the company can effectively develop and evaluate strategic assessments.
The KTV industry was pioneered in Taiwan and has since served as the exemplar of Taiwanese entertainment industry. After years of industry transformation, the industry now operates based on a regional chain business model : be it countrywide, regional, or local. As a result, Taiwan has the highest KTV density in the world. KTV was once voted as the best phenomenon to represent Taiwanese culture and the industry has been regarded as the brand image of Taiwanese leisure businesses for many years.
Expansion assessment is tightly connected with the chain store in many aspects. By analyzing literatures on ＂KTV＂ and ＂Expansion Chain Stores＂, it was found that the former concentrates on themes such as service quality, consumption motivation, information technology, fire-fighting security, and management…etc, while the latter mainly focuses on retail, distributor, food and beverage industries (convenience stores, coffee stores, fast food stores, apparel shops, Hypermarkets, department stores or logistics industries). However, application to the KTV industry is frugal and researches related to expansion assessment is still lacking.
This research is based on the location assessment study. It aims to study leaders of the KTV industry using qualitative research methods, case studies, expert interviews, and secondary data to pinpoint essential factors needed to be assess for franchise expansions.
This research claims that assessment of expansion generally can be divided to four evaluation factors: ＂entertainment market size＂, ＂regulatory measures on expansion＂, ＂investment and development benefit＂, and finally ＂conditions of the expansion stores＂. The first two evaluation factors are often influenced by external considerations such as governmental laws and general market size/conditions. The latter two factors are more closely related to the company specific investment criteria such as property conditions and return on investments.
Based on the above-mentioned four evaluation factors, this study conducted in depth case studies and discussions. After careful analysis and re-organization of information, this research provided recommendations for individual case companies as well as governmental rules. Finally, the research pointed out further research opportunities and summarized reflection in conclusion.
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