Jollibee
1. How was Jollibee able to build its dominant position in fast food in the Philippines? What sources of competitive advantage was it able to develop against McDonald's?
Jollibee initially built up its dominant position on a platform of Five F's: flavor, fun, flexibility, family atmosphere, and friendliness. This philosophy fit with the habits of Filipino customers and enabled the firm's success and expansion in Manila. Flavor was an essential element of this, since Filipino customers preferred the taste of Jollibee's spicy hamburgers. These hamburgers had been developed from a home-style recipe from Tony Tan's father, while McDonald's hamburgers came from a global recipe that did not appeal to local tastes in the same manner. In addition, Jollibee's dominant position stemmed from a unique political situation, in which a political opposition leader was assassinated in 1983. Following this event, McDonalds slowed its investment in the Phillipines, and Jollibee was able to build a base and compete without much pressure. The subsequent growth in nationalism and local pride further helped secure Jollibee's local success against McDonalds.
2. How would you evaluate Tony Kitchner's effectiveness as first head of Jollibee's international division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priority?
It should first be noted that Kitchner was incredibly effective in implementing his vision and acting on his strategy. His effectiveness is captured in the fact that he expanded to 8 new national markets and 18 new stores in just 2 years - a remarkable feat that involved establishing new departments, marketing, negotiations, building support groups, and more. However, Kitchner's judgment was flawed, and his over-confidence led him to act hastily and rashly. His broad strategic thrust involved two main elements: "planting the flag," in which he tried to establish a presence before other major
Jollibee initially built up its dominant position on a platform of Five F's: flavor, fun, flexibility, family atmosphere, and friendliness. This philosophy fit with the habits of Filipino customers and enabled the firm's success and expansion in Manila. Flavor was an essential element of this, since Filipino customers preferred the taste of Jollibee's spicy hamburgers. These hamburgers had been developed from a home-style recipe from Tony Tan's father, while McDonald's hamburgers came from a global recipe that did not appeal to local tastes in the same manner. In addition, Jollibee's dominant position stemmed from a unique political situation, in which a political opposition leader was assassinated in 1983. Following this event, McDonalds slowed its investment in the Phillipines, and Jollibee was able to build a base and compete without much pressure. The subsequent growth in nationalism and local pride further helped secure Jollibee's local success against McDonalds.
2. How would you evaluate Tony Kitchner's effectiveness as first head of Jollibee's international division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priority?
It should first be noted that Kitchner was incredibly effective in implementing his vision and acting on his strategy. His effectiveness is captured in the fact that he expanded to 8 new national markets and 18 new stores in just 2 years - a remarkable feat that involved establishing new departments, marketing, negotiations, building support groups, and more. However, Kitchner's judgment was flawed, and his over-confidence led him to act hastily and rashly. His broad strategic thrust involved two main elements: "planting the flag," in which he tried to establish a presence before other major