Indra Franchise Snapshot

Indra
Franchise 1 (Jerusalem)

Franchise 2 (Haifa)

Franchise 3 (Ashdod)

Population 801,000 Low Labor Cost Well connected Diverse population 3.5 million Tourist

Population 270,000 Tourists 100,000 Moderate labor cost 90% Jews, 10% Arabs Well connected

Population 220,000; Growth rate 1.63% Tourists 100,000 Well connected. Moderate labor cost Port employees majority of the population

Franchisee model-Advantage Israel

BUSINESS FORMAT FRANCHISING
Distribution of Indras products and services under trade mark & implementation of its business format

Access to premium business databases Financing assistance and professional business mentoring (ISMEA and MATI )

Reduction of risk Local Player advantage Rabbinate relation Start up nation Benefits for SME sector in terms of training and access to VC funding (Israel
ranks 5th in world)

Licensors can repatriate benefits Tax deductions on royalties and fee payments Low average salary per month in hospitality sector $1119. 54 % of population btw 15-54
(conducive spenders on dining)

Indra Franchise Format Go to market

Identify Franchise, Funding, Completion of legal formality (0-30 Days)

Training , Pilot Testing , Go to market Campaign (30-40 Days)

Tie up with local corporate, tourism agency, Marketing Communication (40-60 Days)

Feedback incorporation, Launch of cusines,events (Ongoing)

Strengths Established brand presence Financial situation Ease of doing business 51st freest economy worldwide Service style is new to these areas

Weaknesses Not significant presence across Israel Limited availability of multi cuisine

S W O T

Opportunities
Increase in no. of tourist(26%) & first time tourist in Israel (increase by 9%) High per capita income $ 31,296 and spending habits of the population. Govt. Incentives for licensing Government effectiveness and continuity of policy

Threats
Misuse of Intellectual property rights issues, e.g. trade mark registration Crumbling Israels Infrastructure may increase cost of Supply chain . Competition with Local & International Brands Low labor force participation Corruption Top 40 corrupt countries

Recommendations

Diversify in ethnic & middle east cuisine Investment in Lean Supply chain. Ensure Waste system management Govt. subsidy. Usage of renewable energy to seek tax rebate. Business tie up with tourism agency, corporates. Investments in technology and mobile communication (as Israel has high technology penetration ) Good relations with the Rabbinate Seek VC funding for growth .