CASE STUDY: Jollibee Foods Corporation (A): International Expansion
The newly appointed head of International division Mr Manolo .P. Tingzon is pondering into three key opportunities that the firm Jollibee Food Corporation facing whether to enter the small PNG(Papua New Guinea) market where it will be a first mover, to expand into Hong Kong where is an existing base but the local people doesn’t like Jollibee’s Philippines-based fast food model, and a proposal to share the huge benefit in U.S. market by establishing an operation in California.
1. Keep the original business model: franchising
2. Maintaining Marketing investment in building image (symbolization) 3. Local market penetration with strong local brands
4. Highly customer responsiveness
5. Maintain customer value and loyalty
6. Establishing the commercial spots in foreign countries
1. Market entry strategies such as Franchising, Alliances, Joint ventures, Wholly owned subsidiaries 2. Substantive growth strategies: Horizontal and vertical integration strategies 3. Limited growth strategies: Do nothing, Market penetration strategies 4. Retrenchment strategies: Retrenchment, Turnaround strategies
Consequences of Alternatives:
When analyzing the case study it is clear that Jollibee Inc. has higher pressure to respond to local wishes in Philippines due to the entry of global giants like McDonalds. This is due to the fact that Jollibee had a strong presence in Philippines but at the same it should tackle the adaptation pressure from McDonalds. This is also supported by the fact that Jollibee was franchising their brand to foreign countries on very strict terms which do not allow any changes to the menu. And we can use the goals including Keep the original business model: franchising, Maintaining Marketing investment in building image (symbolization), Local market penetration with strong local brands, Highly...
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