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Jack Ma's reasons for acquiring KFC
1, break the tradition, the use of profit maximization to attract franchisees, 2, brand efficiency, earn franchise fees, the launch of systematic management, 3, relying on a strong supply chain, integration of upstream and downstream, from which the profit, 4, forward-looking vision to drive the commercial real estate income.

Reasons are as follows: 1, we all know that KFC global chain stores up to 10,506, but the profits of fried chicken burgers and other commodities accounted for less than 1% of KFC's overall revenue. Because KFC gives the maximum profit of these commodities to the franchisee. Franchisees will inevitably join the KFC team when they see such high profits. So KFC sacrificed profits to attract franchisees, do their own brand. 2, KFC to do their own brand, began to launch a set of independent design of the store management system, you can let the store directly copy the use of the franchisee to join the franchisee does not have to manage too many things, when a shirking can be. Because KFC has been the management system, store management, talent training, store decoration have been included, only need to pay the franchise fee can be paid. (2 million franchise fee).

3, KFC has thousands of suppliers behind it, and they all have to listen to KFC's command, even more so in the price. After all, the market is the king, the supplier will not dare to fall out with KFC, because long-term demand, has made the supplier can not leave KFC the gold master. 4, KFC has a very strong "create business circle ability. Every time KFC stationed in the business district, will inevitably lead to more big brands stationed. And KFC will buy the surrounding land in advance, so that those big brands to find their own lease. In this way, KFC will be able to pay back its capital by relying on the rent.

After reading KFC's business model, do you have any feelings? Regardless of the industry and the business model, the back of the "empowerment and **** enjoyment" is indispensable. KFC has tens of thousands of chain stores around the world, precisely because it dares to give a large part of the profits to the franchisee. This kind of "empowerment thinking" is very applicable in today's era, which is also the reason why Jack Ma has to acquire KFC China. Jack Ma once said: the era of work has become the past, the future will be the era of empowerment, which companies can empower employees, which companies will stand out and become the industry leader. Like China's first listed hospital - Aier Ophthalmology, behind this is also inseparable from a set of empowered employees "partner model".