Case Study Analysis
1. Problem Statement:
Jollibee Foods Corporation was a company originally established by the Tan family in 1975 as an ice cream parlor in the Philippines, but soon had to change its market caused by the oil crisis in 1977 which was a trigger that immediately caused the price of ice cream to double.Already established in the fast food industry and having dealt the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, but although with having some issues in different fields of their operations.
2. How was Jollibee able to build its dominant position in fast food in the Philippines? (KSF's and advantages against McDonalds in its home market) :
In order to respond to this question we have to look back to the history of development of Jollibee and their major success factors. First of all Jollibee was already a well known brand in the food market, so the entry barrier for them was low and the company could easily switch to the fast food industry. Jollibee was already very well known to their target market and has adopted their recepies to the local customers in order to satisfy their taste needs and preferences.
Tan family has very fastly developed their fast food brand due to the Jollibee's F's phylosophy: Flavor, Fun, Flexibility and Families. The combination of those important componets of their phylosophy and the ability to deliver it all to their customers at the affordable price, brought the business to the high position on the local fast food market.
When McDonalds entered the local market, it had a large potential to become a major competitor to Jollibee due to its standards and well-known brand all over the world. Even though McDonals were much more superior in their experience on the fast food market and had more