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Uber rides wave of consumer approval

Alon Lits - Uber MD Sub-Saharan Africa
Alongside Airbnb, Uber has become a byword for disruptive technology. Any potential franchise system wanting to know how to break into and disrupt a mature market, needs look no further than Uber. It has set the template for innovation and thinking big.

Uber has famously responded to an accusation of unfair competition by the taxi industry by explaining that it didn’t see itself as an alternative to taxis, but rather saw itself as an alternative to car ownership.
The disruptive model involves de-constructing the offering to change the game. Disrupters can change consumer behaviour by initially aligning with consumer interest, then changing the expectation and finally delivering the difference. Uber does this by bringing the car to you.

Will your franchise be disrupted?

Disruption light bulbs

By Anita du Toit, Partner, Franchising Plus

The key theme at this year's FNB Franchising Leadership Summit was “Disruption”.  Unless franchise business owners start thinking out of the box and embracing the disruptive forces of innovation, creativity and technology, they risk losing market share and ultimately their existence.

At Franchising Plus, we often see the tension between market realities and conventional business models and the disruptive impact this has on franchises.  Some franchise systems find it difficult to adapt quickly, as they also have to deal with some inherent tension between franchisees and the franchisor.  However, preserving the status quo can lead to obsolescence.  Just think of what happened to franchises in the video rental market.  Disruptive technologies such as Netflix destroyed their market share at a rapid rate.  Conversely, a retailer like Musica adapted to these changes and started to introduce digital entertainment products and gaming and is doing well. 

KykNET Ontbytsake/Morning News interview with franchise expert, Anita du Toit

Anita du Toit - Franchising Plus

Anita du Toit gesels met KykNET oor hoe om klein of medium grootte besigheid uit te brei deur middel van “franchising”.

Anita du Toit talks to KykNET about how small and medium sized businesses can expand through franchising.


What’s new in franchising?

What’s new in franchising?
By Anita du Toit, Franchising Plus

There has been a proliferation of international franchise brands entering South Africa, including brands like Krispy Kreme, Domino’s and most recently, Starbucks.  While some may be cynical of these brands making it in the local market, it does have a pronounced effect on franchising locally.  Firstly, it creates new awareness about a category.  When Starbucks launched, other local coffee brands made headlines with creative promotions, which raised awareness of the coffee category as a whole.  New brands also bring novel concepts to our shores.  Domino’s is famous for its dessert pizzas and other pizza brands are following suit with sweet offerings.  Consumers end up having more choice as the brands on offer expand.  These new brands also create new job opportunities, not only as part of normal operations but also in the supply chain.  Additionally, international brands are focused on convenience.  Again, the consumer wins as 24/7 service becomes available along with innovative delivery models.

Interest rates, the economy and franchising

Interest rates

By Anita du Toit, Partner at Franchising Plus

There is little doubt that 2016 promises to be a difficult trading year.  On a macro level, the world economy is taking strain with events like Brexit adding to uncertainty and financial woes.  We can expect the Rand to devalue further, interest rates to rise, increased taxes and further job cuts.  Additionally, the average consumer has maxed his credit limits and finds himself over extended and in severe debt.