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Jollibee Case Study

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  • September 11, 2011
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Jollibee Case Study

Jollibee started in 1975 as an ice cream parlor (Barlett, Bemish 2010). It diversified into sandwiches after the company’s president Mr. Tony Tan realized that events triggered by the 1977 oil crisis could double the price of ice cream (Barlett, Bemish 2010). However, the business incorporated a year later with only five stores in Manila. Its name is inspired by the president’s vision of employees working happily and efficiently like bees in a hive (Barlett, Bemish 2010).   Today, they have a wide range of products including hot meals and snacks. The company utilized internally generated funds to expand very fast until 1993 when the company went public raising 216 million pesos. The business was mainly run by the Tan family members but the marketing and finance divisions were always managed by professionals who were not family members. (Barlett, Bemish 2010) The mission of Jollibee is extremely simple:  to provide an enjoyable eating environment.  (Rarick 2011) Jollibee attempts to differentiate itself by maintaining a customer-focused corporate culture, which has led to a large number of loyal customers. (Just Jollibee 2007)  Jollibee faced its first major form of competition in 1981 when McDonalds entered and quickly grabbed a 27% market share compared to Jollibee’s 32%.(Barlett, Bemish 2010) Jollibee capitalized on their only advantage, that the market preferred their spicy tasting burgers to McDonald’s plain beef patty, and with the economic and political crisis in August 1983 when a political opposition leader was assassinated, McDonald slowed its investment and Jollibee took the lead. (Barlett, Bemish 2010) Numerous customers and friends of management thought that Jollibbee would become a franchisee of McDonalds. No one believed that a small company like Jollibee would be able to survive such a large competitor coming into the market. However, Tony Tan set high standards and was determined to meet them....
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