Subway In China Case Study

Register to read the introduction… (Wiki, 2010) As far as I am concerned, China is a potential place to develop the franchising of fast- food industry because of its huge population, high profit and good economic prospects. But at the same time, it also has a lot of threats to the developing of Subway in China. Among of them, I think the intellectual property is the main threat to Subway. China is a developing country, many places still need unceasingly to improve and progress. Compare with the western countries, its legal system is imperfect and is full of loopholes and ambiguities. A lot of critical elements are not covered lead to some criminals have chances to access the loopholes in law to violate the intellectual property of business. Meanwhile in China, most of the people are fuzzy to the concept of the intellectual property, they generally do not understand the meaning of it, especially for the business man. It cause to they are easy to make misunderstanding about intellectual property that making illegal things. The local imitators can quickly dilute or damage a trademark a focal firm has built up through much expense and effort. For the franchising business, the brand is playing an important role, but customers become confused by the copy things. For instance, we can find a fast- food chain call “MFC” in Guangzhou. Besides of one letter different from the KFC, both fitting of the stores and trademarks all are very similar to the KFC, the old man in the logo is almost the point where real ones do. What is worse, it is incredible that its types of products are also likely to KFC. Such as the fried chicken, hamburger and egg whip. (BBS Tiexue, 2009) Although the intellectual property strategy planning is attached great importance by the government, such rampant piracy …show more content…
It is an important problem for the franchising. Subway should take urgent measures to solve it. At first, cooperate with government and remind the government improves the intellectual property legal system, repair legal loopholes, and strengthen law enforcement. As foreign franchisees in China, Subway should do the best from themselves, deepen the understanding of intellectual property rights and promote vigorously. Set out the details about the intellectual property on the contract which should be signed by franchisees, it helps to constraint franchisees to prevent intellectual property losing. At last, strengthen the supervision of the franchisee products and service quality in franchising developing