Jollibee International Expansion

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JOLIBEE CASE ANALYSIS

Summary
Jollibee, a fast food chain, based in Philippines was able to obtain a competitive advantage in its local market by keeping tight control over the operations and catering to the taste and appetite of the local people. With the success in the home country, the company then expanded its operations into other countries under the leadership of Tony Kitchner. When Noli Tingzon joined the company, it was at a critical point, where it began to revisit its strategies to expand its international operations and explore new markets. Advantages in the Filipino market

Jollibee’s early strategy in the Philippines market was to concentrate on the taste of the burgers. The taste and the size of the Jollibee’s burgers were made for the Philippine market. The taste of their burger appealed to the local people. Jollibee entered the fast food business in 1977. When McDonald entered the Philippine market in 1981, Jollibee already had a brand name for itself. This gave the first mover advantage over McDonalds. MacDonald with its money power moved very quickly. Jollibee’s, having had some success with its burgers; start expanding quickly to compete with McDonalds. They build volume on the reputation they had earned before McDonalds entered their market.

One more advantage Jollibee had in the Philippine market was that they were the local company. The people could associate themselves with the company. This was emphasized in 1983 when the political climate in the country became instable. Jollibee continued to expand where as McDonald slowed down its investment in this market. The subsequent rise in the nationalism and local pride helped Jollibee secure a dominant position in the Philippine market. International Expansion under Tony Kitchner

When Tony Kitchner joined the company as the first head of the international division, Jollibee already had a few failed attempts to entry into international markets. Kitchner was very efficient in...
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