Jollibee Foods Corporation Analysis
Jollibee Foods Corporation
Jollibee Foods Corporation owned by the Tan family began in 1975 as a basic ice cream parlor and subsequently expanded its menu offering in the form of sandwiches and hamburgers as a result of the increased cost of oil and the President Tony Tan Caktiong (TTC) anticipated ice cream prices to soar. The company culture was developed on the Five F’s: Flavor, Fun, Flexibility, Family atmosphere and Friendliness. The years to follow, Jollibee Foods began to expand domestically opening five stores and proceeded to incorporate as Jollibee Foods Corporation. The family owned Corporation rapidly expanded domestically throughout the Philippines. Jollibee Foods began to diversify its product offerings by acquiring Greenwich Pizza Corporation as well as entering a joint venture with Deli France. The Corporation went public in 1993 which the family maintained the majority of ownership and control of the company. Jollibee Foods first major challenge was McDonalds entering the company domestic market in 1981. McDonald size and reputation as being one of the major fast food companies was a concern for Jollibee Foods. Although the domestic consumer preferred the taste of Jollibee hamburger the threat to the company’s market share was real. McDonalds began entering into the Philippine market by opening six restaurants within two years. McDonalds began an extensive advertising campaign and proceed to surpass Jollibee’s sales by 1983 which resulted in a 27% share of the market. The response to McDonald’s threat was a new product called the Champ’s, which was larger in size and spicier in taste that appealed to the Philippine consumer. However, in 1983 the political opposition leader Benigno Aquino was assassinated resulting in economic and political uncertainty. Foreign investment in the Philippines slowed as a result, which Jollibee took advantage by capitalizing to broadening their menu to include chicken, spaghetti and peach mango dessert
Jollibee Foods Corporation owned by the Tan family began in 1975 as a basic ice cream parlor and subsequently expanded its menu offering in the form of sandwiches and hamburgers as a result of the increased cost of oil and the President Tony Tan Caktiong (TTC) anticipated ice cream prices to soar. The company culture was developed on the Five F’s: Flavor, Fun, Flexibility, Family atmosphere and Friendliness. The years to follow, Jollibee Foods began to expand domestically opening five stores and proceeded to incorporate as Jollibee Foods Corporation. The family owned Corporation rapidly expanded domestically throughout the Philippines. Jollibee Foods began to diversify its product offerings by acquiring Greenwich Pizza Corporation as well as entering a joint venture with Deli France. The Corporation went public in 1993 which the family maintained the majority of ownership and control of the company. Jollibee Foods first major challenge was McDonalds entering the company domestic market in 1981. McDonald size and reputation as being one of the major fast food companies was a concern for Jollibee Foods. Although the domestic consumer preferred the taste of Jollibee hamburger the threat to the company’s market share was real. McDonalds began entering into the Philippine market by opening six restaurants within two years. McDonalds began an extensive advertising campaign and proceed to surpass Jollibee’s sales by 1983 which resulted in a 27% share of the market. The response to McDonald’s threat was a new product called the Champ’s, which was larger in size and spicier in taste that appealed to the Philippine consumer. However, in 1983 the political opposition leader Benigno Aquino was assassinated resulting in economic and political uncertainty. Foreign investment in the Philippines slowed as a result, which Jollibee took advantage by capitalizing to broadening their menu to include chicken, spaghetti and peach mango dessert