This case is ideal for discussion on corporate strategy, specifically focusing on growth and expansion through franchising-led business models in an emerging market such as India. By engaging in the case discussion, students will gain insights into the following:
To understand the benefits and challenges of adopting franchising as a corporate growth strategy in an emerging market context.
To analyse the necessity of an accelerated corporate growth strategy in response to evolving industry dynamics.
To evaluate the key risks associated with using franchising as a strategy for accelerated growth and expansion.
To develop strategic solutions to mitigate the risks associated with franchising as a strategy for accelerated growth and expansion.
Naturals Salon, a leading beauty salon brand in India, had grown rapidly through franchising, expanding to over 700 outlets across the country by 2022. The case was set in December 2024, where the co-founders, Veena Kumaravel (Veena) and CK Kumaravel (CKK), faced a crucial strategic decision: how to pursue accelerated expansion and growth. With an ambitious target of 3,000 salons by 2029, the company had to decide on the best path for accelerated expansion and growth. Veena was inclined toward aggressive expansion through franchising, while CKK was concerned about maintaining brand consistency, operational efficiency and franchisee capabilities in an emerging market. The dilemma involved choosing among three strategic options: a rapid expansion through franchising, the existing steady growth through franchising, or a cautious approach with corporate-owned salons. This case was designed for MBA and executive education courses in Corporate Strategy, Strategic Management and Business Model Innovation, particularly in the context of emerging markets. It allowed students to explore franchising as a business model, the risks of accelerated growth and strategic decision-making frameworks such as Resource Scarcity Theory, Agency Theory and Institutional Theory.
This case is well-suited for MBA-level courses, particularly those focusing on growth and expansion strategies within subjects such as Strategic Management, Corporate Strategy and Business Model Innovation. It is also highly relevant for courses that explore strategies in emerging economies, such as Strategy for Emerging Markets. Additionally, the case can be effectively used in executive education programs that focus on franchising, business scaling and market expansion strategies. The ideal audience for such programs includes experienced managers, early-stage entrepreneurs and fresh MBA graduates with a foundational understanding of business strategy.
Teaching notes are available for educators only.
CSS11: Strategy
