Jollibee was able to build its dominant position in the fast food industry in the Philippines in several ways. The Company, in which the Tan family owned a majority ownership, operated on the vision of employees working happily and efficiently. This vision later became part of Jollibee’s “Five Fs” operating philosophy. The “Five Fs” included friendliness, flavorful food, a fun atmosphere, flexibility in catering to customer needs, and a focus on families.
Throughout the Philippines, the Company opened several franchise locations which were licensed by members or friends of the Tan family. This interrelationship helped the Company operate in a manner in which they did not have to communicate the philosophy of Jollibee as friends and family were already familiar with the operating environment in which Jollibee ran. Therefore, Jollibee was able to spend a great amount of time focusing on the logistics of the site location rather than educating others on the operating philosophy of the Company.
When Jollibee decided on a location to open a new franchise location, they focused on the traffic patterns and competition on particular streets. Jollibee was aware that the key to success was attracting large numbers of customers and increasing the size of the average order. This was coupled with good management as Jollibee recognized that management was key to motivating and controlling crew members who would ultimately come face-to-face with the customer base and delivering Jollibee’s “Five Fs”.
Jollibee was able to build and maintain a dominant position in the Philippines due to their consistency in operations. Jollibee invested significant capital which led to the growth of franchising and resulted in economies of scale in advertising and purchasing. When customers would decide to go to Jollibee, they knew that no matter which location they went to, the service and food would be the same great quality as the previous Jollibee location.
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