Jollibee Case
Summary
Jollibee began as an ice cream parlor in 1975 and has evolved into a major fast food corporation in the Philippines and numerous other countries in Asia. The company still continues to pursue international expansion and has been successful with 24 stores brining in over 9 million US $ in Europe. There have been many ups and downs in the process of international expansion both inside Jollibee and from outside forces. Due to goals that were a little too heady set and attempted to be achieved by Tony Kitchner, it is now up to Noil Tinzon to pick up the pieces and determine what the best strategy is to be used for international expansion. The three entry options he has to weigh are expansion into New Guinea, adding an additional store in Hong Kong and expansion into California. His decision will shape the international division at Jollibee.
Question 1
Jollibee was able to build its dominant position in fast food in the Philippines for a number of reasons. The company had its roots in the food industry in the Philippines early on with the ice cream business, so the entry barrier into fast food was very low. It was a smooth transition from being ice cream only to fast food after the oil crisis in 1977. This transition was also aided by using a recipe that was developed in the Philippines and was appealing to the markets that were serviced by Jollibee’s. This would eventually be a contributing factor in the competitive advantage Jollibee held over McDonald’s in it’s the Philippins. Jollibee also built itself around the solid foundation of the “Five F’s”. Friendliness, flavorful food, fun atmosphere, flexibility and focus on families summed up Jollibee’s philosophy and allowed for Jollibee to become a recognizable brand throughout the Philippines. The operations and marketing strategies employed by the company can be credited with establishing a dominant position through the previously mentioned actions.
Once the Jollibee brand was established,
Jollibee began as an ice cream parlor in 1975 and has evolved into a major fast food corporation in the Philippines and numerous other countries in Asia. The company still continues to pursue international expansion and has been successful with 24 stores brining in over 9 million US $ in Europe. There have been many ups and downs in the process of international expansion both inside Jollibee and from outside forces. Due to goals that were a little too heady set and attempted to be achieved by Tony Kitchner, it is now up to Noil Tinzon to pick up the pieces and determine what the best strategy is to be used for international expansion. The three entry options he has to weigh are expansion into New Guinea, adding an additional store in Hong Kong and expansion into California. His decision will shape the international division at Jollibee.
Question 1
Jollibee was able to build its dominant position in fast food in the Philippines for a number of reasons. The company had its roots in the food industry in the Philippines early on with the ice cream business, so the entry barrier into fast food was very low. It was a smooth transition from being ice cream only to fast food after the oil crisis in 1977. This transition was also aided by using a recipe that was developed in the Philippines and was appealing to the markets that were serviced by Jollibee’s. This would eventually be a contributing factor in the competitive advantage Jollibee held over McDonald’s in it’s the Philippins. Jollibee also built itself around the solid foundation of the “Five F’s”. Friendliness, flavorful food, fun atmosphere, flexibility and focus on families summed up Jollibee’s philosophy and allowed for Jollibee to become a recognizable brand throughout the Philippines. The operations and marketing strategies employed by the company can be credited with establishing a dominant position through the previously mentioned actions.
Once the Jollibee brand was established,