How can companies create value in the Fast Food industry? How was
Jollibee able to develop a dominant position in the Philippines? What are
Jollibee’s sources of competitive advantage with respect to McDonald in that market? Companies in fast food industry are creating value with:
Providing a time constrained customers a good quality food in a clean dining environment at a low price
Offering Standardized menus, cooked in bulk in advance, kept hot, packaged, and available to take-out or dine in the restaurant.
Fast food companies also benefit standardized supplies of ingredients and/or partially prepared foods (enables them to reduce costs) and provisions from franchisees
Jollibee developed a dominant position in the Philippines with Being first food chain in the market, knowing the preferred taste of Philippines population, having tight control over operations management (efficient use of time, faster services), which had enabled them to reduce costs...
Jollibee’s competitive advantages with respect to McDonalds are preferred taste to local consumers (spicy taste), first mover advantage and lower price. They also had an advantage of favourable political environment (it favoured national companies) at the time McDonalds enter Philippine market.
Jollibee follows a formal process for entering new foreign markets. Who are the different actors involved and what are their respective roles?
The international division – looks for countries with low or no presence of competitors, where they can build brand awareness
Parent company – making investment, to create a partnership with franchisees
Franchisee – selecting a site of first store with advice of international division staff
FSM (franchise service managers) – getting responsibility for the opening. Hiring the project manager who will manage the first store, hiring architects to plan the store
Project manager – responsible for recruiting local store managers, in