The Lewis Group and the Esprit Franchise in New Zealand
John J. Lawrence and Michael McCollough
University of Idaho, USA
Volume 3: 2007, pp. 13-22; ABSTRACT
This case describes the situation faced by the Lewis Group, a family owned New Zealand business, upon notification that their international franchise agreement with Esprit Holdings would not be renewed. Esprit Holdings was taking back the rights to the Esprit franchise in order to consolidate control of its brand and act in a more integrated manner worldwide. The options open to the Lewis group included finding another international franchise, creating a new brand to operate under, or going out of business. The evolution of Esprit Holdings’ international market entry strategies is presented so that students can understand international franchising issues from both the franchisor’s and franchisee’s perspectives. The case is intended for use in international marketing or international business courses and was developed to teach international market entry strategy with a particular emphasis on international franchising. Additional issues covered by the case included international brand management, entrepreneurship, and corporate ethics.
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