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Elements Of Franchise And Network Marketing In North American Economy


  • Gheorghe MINCULETE

    () (“Carol I“ National Defense University, Bucharest)

  • Polixenia OLAR

    () (“Carol I“ National Defense University, Bucharest)


There are stories about successes but also about failures referring to franchise and network marketing businesses. Considering the similarities and differences they offer, it is necessary to correctly indicate them for a certain situation. If someone wants to find out the perfect moment for a proper business, he must determine its sense; he must also compare and make a clear difference between its applicability through network marketing or franchise acquisition. There are great stories about success, in both categories, as well as stories of monumental failure and financial loss. A careful analysis and comparison will help one businessman to understand the risks and costs involved; he can also develop the proper opportunity for the unique situation that he turns it into account with specific financial tools. According to the American specialists, network marketing is the “the supreme synergy” as it combines the best parts of the franchise concept with the best parts of the exponential growth. For a clear image, we would like to review the two concepts and the relationships between them. "

Suggested Citation

  • Gheorghe MINCULETE & Polixenia OLAR, 2010. "Elements Of Franchise And Network Marketing In North American Economy," Proceedings of the 5th International Conference on Knowledge Management: Projects, Systems and Technologies,Bucharest, November 12-13 2010 19, Faculty of Economic Cybernetics, Statistics and Informatics, Academy of Economic Studies and National Defence University "Carol I", Department for Management of the Defence Resources and Education.
  • Handle: RePEc:rom:km2010:19

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    References listed on IDEAS

    1. Deckro, RF & Hebert, JE, 1989. "Resource constrained project crashing," Omega, Elsevier, vol. 17(1), pages 69-79.
    2. Arrow, Kenneth J, 1986. "Rationality of Self and Others in an Economic System," The Journal of Business, University of Chicago Press, vol. 59(4), pages 385-399, October.
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    More about this item


    franchise; network marketing; business; product; service; network distributors.;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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