Globalization of Jollibee
In 1975, Tony Tan Caktiong started an ice cream parlor which evolved to become the first of many Jollibee chains around the world. Caktiong with his wife Grace, at the suggestions of their patrons, diligently took a hands on approach to add variety and improve the taste in their menu (Martin, 2013). Eventually, Jollibee’s distinctly Filipino menu and customer/family friendly atmosphere made it extremely popular with the domestic market (Bartlett & Beamish, 2011, p. 34). Within a year of its transition into the fast food industry, Jollibee had already opened 5 stores in metropolitan Manila and successively incorporated as Jollibee Food Corporation (JFC).
In 1981, McDonald’s grasped the opportunity to enter the emerging Filipino fast food market and posed considerable competition to Jollibee. Despite the David and Goliath comparison of the two entities, Jollibee prevailed because they had the “home field advantage”. The timing of JFC’s entrance into the fast food market (in comparison to McDonald’s) gave them a substantial head start in establishing prime locations for its stores and promoting its brand identity. Jollibee’s extensive network within the industry, knowledge of consumer preferences and even the timing of the political instability in 1983 worked in JFC’s favor to give it a huge competitive advantage over McDonald’s. As a result, Jollibee assumed a dominant market position and planned to further expand its operations out to Southeast Asia.
JFC expansion plans and ventures were initially met with little success; in 1993, Caktiong hired Tony Kitchner as the Vice President of International Operations to help create an International Division for JFC. In that same year Jollibee went public, but the Tan family still retained majority ownership and control of the company. Upon assuming his position, Kitchner quickly made some significant changes to the organization as a whole and implemented his strategic plans for globalization. However, the
In 1981, McDonald’s grasped the opportunity to enter the emerging Filipino fast food market and posed considerable competition to Jollibee. Despite the David and Goliath comparison of the two entities, Jollibee prevailed because they had the “home field advantage”. The timing of JFC’s entrance into the fast food market (in comparison to McDonald’s) gave them a substantial head start in establishing prime locations for its stores and promoting its brand identity. Jollibee’s extensive network within the industry, knowledge of consumer preferences and even the timing of the political instability in 1983 worked in JFC’s favor to give it a huge competitive advantage over McDonald’s. As a result, Jollibee assumed a dominant market position and planned to further expand its operations out to Southeast Asia.
JFC expansion plans and ventures were initially met with little success; in 1993, Caktiong hired Tony Kitchner as the Vice President of International Operations to help create an International Division for JFC. In that same year Jollibee went public, but the Tan family still retained majority ownership and control of the company. Upon assuming his position, Kitchner quickly made some significant changes to the organization as a whole and implemented his strategic plans for globalization. However, the
References: Bartlett, C., & Beamish P. (2011). Transnational management (6th ed,). New York, NY. McGraw-Hill. Boorstin, D. J.(2004). Intellectual Property as a Lever for Economic Growth. WIPO magazine. Pages 8-12. Retrieved December 29, 2013 from http://www.wipo.int/export/sites/www/wipo_magazine/en/pdf/2004/wipo_pub_121_2004_11-12.pdf Martin, K. A. (2013). How the Tan Caktiongs Built the Jollibee Empire. ABS-CBN News. Retrieved December 29, 2013 from http://www.abs-cbnnews.com/business/03/09/13/how-tan-caktiongs-built-jollibee-empire