What is the purpose of the design of the strategic expansion model of the enterprise?
Strategy determines life and death, model determines speed, and the strategic vision and model positioning of the enterprise determine how the future path of the enterprise will develop. Thus showing that the pattern is in the service of strategy.
It's worth thinking about here, many people will compare which model is better, in fact, there is no best model, only the most suitable, suitable is the best, how to understand?
Suppose you are going from Changchun to Kunming now, which means of transportation is faster?
Needless to say, the plane is the fastest, but the risk is that it will be delayed at every turn due to the weather;
That is to say, if you want to do the national market, franchising may be the fastest to open the market, but there are also risks, franchisees are not easy to control, and they may have their own ghosts.
Assuming that it is now from the underground garage to the first floor, which means of transportation is faster?
There is also no doubt that the elevator is the fastest.
I believe that here, everyone will understand, the strategic goals are different, the choice of expansion mode is different, where you want to go, you should look for your own "transportation", not hearsay, today I heard that the store partner is very popular, I will introduce the store partner, tomorrow I hear that the custody model of MINISO is very powerful, so I will introduce the custody model.
So as a founder, you have to be clear and clear about the strategy and stick to doing the right thing, not doing it right.
Therefore, the design purpose of the expansion model is to achieve strategic goals, followed by the realization of the greatest interests of the enterprise!
As I mentioned earlier, the expansion model is a metaphor for transportation, so what are the common expansion patterns? Let's take a look:
Chain direct sales model: invest in yourself and open a direct store
Chain store partnership: Employees cooperate with the headquarters, and employees manage the store
Chain custody association: the franchisee cooperates with the headquarters, and the headquarters manages the store for the franchisee;
Chain franchise joint operation: the franchisee cooperates with the headquarters, and the franchisee manages the store;
Chain custody model: the franchisee is only responsible for taking the money, and the headquarters manages the store
Chain franchising: The franchisee invests money while managing the store, and the headquarters is responsible for giving you the model.
What is the model of your business, you can briefly take stock, what is the future strategy, and which expansion model to match?
Let's look at two dimensions: one is the weight of the asset, and the other is the speed of expansion, such as:
Chain direct sales model: large capital, slow expansion, chain store partnership: large capital, slightly slow expansion;
Chain custody association: small capital, slightly slower expansion; franchise association: small capital, slightly faster expansion;
Chain custody model: small capital, fast expansion; chain franchising: small capital, fast expansion;
Three elements of chain business model:
10,000 store chain: how to choose the chain model?
Profit model + expansion model + management and control model = chain business model
[Thoughts]
In the stage of single-store profitability, how should enterprises make profits? In addition to earning the difference in the price of products, what are the profit points?
Chain expansion, in addition to opening their own stores, what other ways to expand?
There are many directly operated and franchised stores, how to deal with the problem of control?
First, the profit model
The profit model of chain enterprises can be divided into three types: selling model profit, industrial chain profit and double profit model, as shown in the figure.
Sell mode
As the founder of a chain enterprise, you need to think about whether the enterprise is suitable for the whole store output or the product output.
The selling model is the output of the whole store
Includes:
Brand fee, management fee, franchise fee, security deposit, training fee, product fee, equipment fee
For example, restaurant chain giant KFC:
It is divided into two major sections, one is the initial investment cost of joining, and the other is the cost paid during the operation.
The initial investment cost of joining includes the initial fee of 300,000 yuan, the training fee of 53,000 yuan, and the restaurant purchase fee of more than 2 million.
So how does KFC ensure sustainable profitability in the later stage, that is, the closed loop of the business model?
It is the fee paid during the operation period, and KFC's franchise continuation fee, advertising and promotion fee is charged according to a certain percentage of the turnover.
This solves the problem of closed-loop water storage, rather than simply selling the model.
Industrial chain model
Through two case studies:
The first is Shenzhen's Baiguoyuan, with nearly 3,000 directly-operated stores and more than 100 production bases across the country, to solve the problem of fruit supply and distribution in various places, and to form its own industrial chain model by integrating upstream suppliers.
The second case is McDonald's
(1) The product line (hamburger) does not make money
(2) French fries and cola make a small profit
(3) The supply chain makes money
(Centralized Procurement + Supply Chain Transformation)
Double profit model
Dual profit model, i.e., explicit income and implicit income.
We can see this from the financial statements of Heilan House in 2016
Heilan Home's financial statements include: main business income, non-core business income and investment and financing income.
the main business income was 16.9 billion yuan;
investment income of 40.25 million yuan;
The net non-operating income and expenditure was 33.06 million yuan.
From this, it can be seen that the design of other benefits is very important, which profit model is your business?
Second, the expansion model
How can a chain business expand?
Let's take a look at what are the expansion models: direct sales, franchising, free chains, mergers and acquisitions, custody franchises, custody associations, etc. Their respective advantages are as follows:
In the process of development, chain enterprises must weigh the proportion of direct sales and franchises, and plan the development route in order to develop quickly and steadily.
But in the premise of expansion, remember that it is a closed loop of commercial water storage, as shown in the figure:
Customer-centric, after customer satisfaction, customers continue to feedback to the enterprise, and the enterprise side continues to upgrade products/services, such as upgrading from the sense of experience, from technological innovation and design.
Or the horizontal project is expanded, or the vertical product is done to the extreme, and the upstream and downstream are connected.
So think about it, which expansion models are suitable for the development of your own business?
3. Management and control mode
How to control the expansion of chain enterprises?
The management and control mode of chain enterprises can be roughly summarized into three types: operational control, strategic control and financial control, and the content and advantages and disadvantages of each control model are shown in the following table.
Chain enterprises need to combine and switch between three different types of management and control at different stages of development
The adoption of different expansion models by chain enterprises will also have an impact on the choice of management and control models, as shown in the following table.
So at different stages, with different expansion models, you need to think about whether you need to adjust and optimize your control model?
In 2024, catering O2O will organize a 10,000-store chain summit in key cities across the country, and invite experts and teachers from 10,000-store chain brands and consulting services to explain the difficulties of landing chains for chain enterprises in various places. Please send a private message to the editor for registration and the organization of the city summit!
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