International Expansion: Jollibee
EXECUTIVE SUMMARY
Jollibee was able to attain a competitive advantage over McDonald 's by doing two things: (1) Retaining tight control over operations management, which allowed it to price below its competitor and (2) Having the flexibility to cater to the tastes of its local consumers. While Tony Kitchner was hired to develop these competitive advantages abroad, his international strategy of "planting the flag" and "targeting expats" was executed haphazardly and resulted in losses for the firm. His eventual dismissal was largely due to his inability to manage intra-firm tensions.
The arrival of Noli Tingzon marks a critical juncture for Jollibee, where it will begin entering the US market. The key to Jollibee 's success in Daly City will be its ability to find a local partner that can leverage its organizational advantage, while navigating the challenges of conducting business in the United States.
I. Creating Competitive Advantages in the Filipino market Jollibee 's success in its home market developed as a result of its ability to better meet the needs of the Filipino customer. Although its success was mediated by the political and economic crises of 1983, Jollibee was still able to deliver a product that was both cheaper and better tasting than that of McDonald 's. The ability of Jollibee to adopt its menu to local tastes, as well as the "5 Fs" of its operations management are two organizational capabilities that led the company to develop a competitive advantage over McDonald 's. The ability to push forward the Champ burger highlights another source of competitive advantage that was recognized by Tom Kitchner: flexibility. As one of the "5 Fs," flexibility was an asset that Jollibee, could leverage more easily than McDonald 's. As a younger company, Jollibee has the ability to adapt its menu items without jeopardizing its brand image. It also has the advantage of having a flatter organizational structure that allows it to respond to
Jollibee was able to attain a competitive advantage over McDonald 's by doing two things: (1) Retaining tight control over operations management, which allowed it to price below its competitor and (2) Having the flexibility to cater to the tastes of its local consumers. While Tony Kitchner was hired to develop these competitive advantages abroad, his international strategy of "planting the flag" and "targeting expats" was executed haphazardly and resulted in losses for the firm. His eventual dismissal was largely due to his inability to manage intra-firm tensions.
The arrival of Noli Tingzon marks a critical juncture for Jollibee, where it will begin entering the US market. The key to Jollibee 's success in Daly City will be its ability to find a local partner that can leverage its organizational advantage, while navigating the challenges of conducting business in the United States.
I. Creating Competitive Advantages in the Filipino market Jollibee 's success in its home market developed as a result of its ability to better meet the needs of the Filipino customer. Although its success was mediated by the political and economic crises of 1983, Jollibee was still able to deliver a product that was both cheaper and better tasting than that of McDonald 's. The ability of Jollibee to adopt its menu to local tastes, as well as the "5 Fs" of its operations management are two organizational capabilities that led the company to develop a competitive advantage over McDonald 's. The ability to push forward the Champ burger highlights another source of competitive advantage that was recognized by Tom Kitchner: flexibility. As one of the "5 Fs," flexibility was an asset that Jollibee, could leverage more easily than McDonald 's. As a younger company, Jollibee has the ability to adapt its menu items without jeopardizing its brand image. It also has the advantage of having a flatter organizational structure that allows it to respond to