Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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The Methods of Market Structure Analysis in the Franchise Industry

프랜차이즈 산업의 시장구조 분석 방법

  • Hyung Chul Park (Department of Management Consulting, Hanyang University) ;
  • Jungwoo Lee (Center for Global R&D Analysis, Korea Institute of Science and Technology Information) ;
  • Chang Hee Han (School of Business Administration, Hanyang University)
  • 박형철 (한양대학교 일반대학원 경영컨설팅학과) ;
  • 이정우 (한국과학기술정보연구원 글로벌R&D분석센터) ;
  • 한창희 (한양대학교 경상대학 경영학부)
  • Received : 2024.07.16
  • Accepted : 2024.08.07
  • Published : 2024.09.30
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Abstract

Although concerns about overheating of the franchise industry's market structure continue to be raised, there are few studies that analyze the market structure of the franchise industry and suggest practical use. Most existing studies mainly analyze the market structure of other industries using industrial concentration(HHI) as an indicator of market competition intensity from the perspective of industrial organization theory. This study seeks to present a market structure analysis method that is different from existing methods. Considering practical application, this study presented a method to analyze the market structure that combines industry concentration(HHI) analysis and matrix analysis of the franchise industry. First, the industry concentration(HHI) and operating profit ratio(SMR) of 15 major industries in the franchise industry were analyzed in a time series manner (2014-2019). Second, using industrial concentration and operating profit ratio(SMR) as two variables on the x-axis and y-axis, a two-stage matrix analysis was used to understand the market structure characteristics of 15 industries at a glance. Third, a method of utilizing the matrix analysis results for practical decision-making was presented.

Keywords

Acknowledgement

This work was supported by the research fund of Hanyang University-ERICA (HY-2022-1610).

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