Jollibee

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  • Topic: Philippines, Papua New Guinea, Port Moresby
  • Pages : 4 (1163 words )
  • Download(s) : 793
  • Published : December 12, 2012
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1. Jollibee was able to build the dominant position in fast food in the Philippines because it was based on “Five Fs”: friendliness, flavorful food, fun atmosphere, flexibility in catering, and focus, which fitted the Filipino customer’s habit. Additionally, since it was a local brand, it understood the customers well. For example, it offered spicy burgers that McDonald couldn’t offer. Furthermore, the political and economic crisis that occurred in 1983 led most foreign investors and competitors, such as McDonald to slow down the expansion in Philippine. During this crisis, Jollibee broadened its menu by offering various kinds of food that matched local tastes and built more stores all around Philippine. This subsequent growth and strong dominance prevented McDonald to expand.

One of the sources of competitive advantage of Jollibee against McDonald’s was that Jollibee was a first mover in Philippines. Therefore, when McDonald’s entered Philippines, Jollibee already had the brand awareness and had shaped the customer preferences.

Other than that, due to the well understanding of the Filipino market, McD lost to Jollibee’s scale and flavor of burger. Jollibee knew that the Champ’s one wide hamburger patty could attract more customers than McDonald’s Big Mac because of the Filipino’s large appetite. Speaking of the flavor, McDonald’s burger’s flavor might fit the Westerners, but it couldn’t satisfy the Filipinos who were used to eating spicy food.

2. Tony Kitcher was quite ambitious to increase the pace of international expansion. In two years, Jollibee had entered 8 new national markets and opened 18 new stores. Kitcher’s strategy was based on “targeting expats” and “planting the flag.”

Kitcher’s idea of “targeting expats” allowed the company to expand Jollibee to many countries. However, it didn’t go well because he later on found out that not all overseas Filipinos were potential customers. For instance, the wealthy expatriates prefer hotel...
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