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The Linkage Between Competitive and Operational Advantage and Entrepreneurship within Australian Real Estate Franchises

Author/s: Linda Chartres

Date Published: 1/01/2014

Published in: Volume 20 - 2014 Issue 2 (pages 171 - 185)

Abstract

Out of 37,000 enterprises operating within the Australian real estate industry, well over 50% of those are franchised outlets suggesting franchising popularity. The study collectively extends the franchising literature through semi-structured interviews with six leading real estate stakeholders, specifically focussing on three distinct yet interdependent areas of interest. Bound together in a contractual agreement, the franchisor and the franchisee form a strategic alliance which benefits both parties and enables each to be entrepreneurial. The study highlights the relevance of ownership potential as a key motivational force behind entrepreneurs choosing to franchise and stresses the importance of development of culture as a key consideration in brand strength for franchisors and nurturing good managerial talent to provide strong leadership for franchisees. For the franchise to be successful, the research points to linkage between competitive advantage and efficiency arising out of correct implementation of business systems, training systems, recruitment of good operators and adoption of innovative strategies. The use of technology and specifically internet has revolutionised the real estate industry however, in acknowledging this, the study concludes that its scope of use and correct application are the keys to reaping greatest benefits. There is evidence to suggest that divergence in formation of franchise models to adopt a less formal approach to franchising is on the rise in some areas of Australian states. It is envisaged that this research will enhance an understanding of the rationale behind the insurgence of hybrid franchise models and thus bear great significance to the industry.

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Keywords

Competitive Advantage - Efficiency - Motivation - Operational Advantage - Real Estate Franchising

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