Strategic alliances for competitive advantage: Evidence from Israel's hospitality and tourism industry

The paper portrays the role of franchising in the hospitality and restaurant industries in Israel. Franchising constitutes an alliance between atleast two organizations, where each side benefits from the skill and resources held by other. Independent hotels benefit from the global brand name of the international hotel chain and its reservations system. The franchising firm (foreign) gains a quick, often smooth, access to a new market without the risk involved in ownership. Moreover, this strategies enables a quick entry to other Middle East or Mediterranean countries, with Israel serving as a platform for entry. The article focuses on several cases to illustrate the diffusion of franchising in the hospitality and fast-food segments of the Israeli economy.