Why McDonalds is in property business?

Think about this, business model is more important than product or services you sell. Why? Because business model is where you differentiate from the crowd.

A very simple example, what is McDonald selling ? Answer: Burger. So, is there anybody else selling burger? Yes, of course. So, McDonald is no different the the stall on the street selling burger if we look at the product they sell.

So, what is the business model of McDonald? Answer: Franchise. Yeah, you get it. This is how McDonald differentiate themselves from the crowd of selling burger.

Furthermore, many may not notice that McDonald is also in the property business. Look at their location, you will notice that most of the McDonald is located at the premium location, the heart of the city, shopping complex.. etc. They are able to buy the location then rent the location to the franchise owner with the condition that McDonald is allow to increase the rental every few years. Fantastic business model!

Another interesting example, electronics devices manufacturer in China is able to sell their product to other country at their cost price. Some even lower than their cost price!! You heard it right. So, are they losing money? No, they are earning, because china have 17% tax rebate on the export product. When the manufacturer export the product, they are actually earning from the rebate. This is an innovative business model !!

More example to think about:

• Dell - selling computer. Business model = allow the customer to built their own PC in their own room.
• Amazon - selling books (and other stuff). Business model = online bookstore with neutral review.

Do you know how other business model operate? Please comment.

Earthquake relief - Find your relatives through google

Google is helping you to find your relatives in China. It's actually gives some result that is related to the earthquake victims.














I tried using the search a random name - "刘明", and I get some forum actually looking for this girl, with her picture attached.

There are a lot of other interesting links on this website. You can even view the maps where you can see how the relief operation is operating and of course picture and news from this tragedy.

If you want to help them, please check this out

援助中国抗震救灾