The purpose of this study is to examine business strategies established by local franchise to achieve a global competitive advantage. Since the franchise become the easiest way to start a business, it is necessary to formulate strategies in running business processes according to the vision, mission and organizational culture of the franchisor company. This research is descriptive research that describes the theory of strategy then analyze with the existing conditions of the example company. An example of company is chosen by judgmental sampling technique, and that is Es Teler 77 – the local franchise that has developed 180 outlets across Indonesia and abroad. This research uses SWOT analysis. This research found that: (1) Es Teler 77 retains the initial fee and the management fee which are supported by Good Corporate Governace procedures to reduce activities that require government bureaucracy, (2) to overcome the competition, Es Teler 77
establishes both of distribution and kitchen centre, and (3) to overcome the low position of the substitution services, Es Teler 77 takes advantage of advances in technology to establish beneficial cooperation with suppliers, for example: to build business networks through coordination based business partnership that aims to increase the added value of products. This research concludes that business strategy which becomes the key success of Es Teler 77 franchise is a strategy that maximizes the internal strength possessed to counter threats from the environment. These technical strategies could be learned and implemented by developing Small and Medium Entreprises
(SMEs) to achieve global competitiveness.
© 2014 The Authors. Published by Telkom Pub. Ltd.
Selection and peer-review under responsibility of The ISCLO, Department of Communication, University of Telkom,
20342 Bandung, Indonesia.
Keywords: Business strategy, local franchise, global competitiveness.