Jollibee Foods Corporation Analysis Case
Case Question:
In light of the International Division that Tingzon inherited, where and how should Jollibee expand next?
Assessment:
Jollibee Foods Corporation recognizes that a reconfiguration of its international strategies will assist the company in embarking on a plethora of opportunities outside of its existing markets. New Guinea, Hong Kong, and the United States offer the chance for the company to grow its brand globally, but success is not guaranteed. Jollibee can capitalize on its regional success on a larger scale by undertaking a focused expansion strategy. The corporation should expand its operations in Hong Kong and enter the U.S. market for the following reasons:
• Hong Kong and the United States are markets that have high profit potential
• Jollibee could safely expand in these markets with the option to target the sizable Filipino expatriate population in each country
• Jollibee can use the Hong Kong and Unites States markets as an opportunity to gain mainstream notoriety
Recommendations
We recommend that Jollibee Foods undertake the following action plan to further its expansionary goals:
1) Establish a hybrid strategy consisting of the “plant-the-flag” approach and the “focus on expanding share in a few countries” approach.
a. Jollibee Foods reaped past success with the “plant-the-flag” approach but it must incorporate lessons learned from imprudent market selection such as the Middle East expansion. Making well-reasoned, careful choices to gain initial success in the U.S. via franchising while progressively expanding in Hong Kong where success has been previously achieved is paramount.
2) Transition from niche to mainstream markets
a. Jollibee needs to modify its regional South Pacific brand strategy that has a limited customer base to a global brand allowing it to achieve enhanced brand exposure and diversification. The corporation should also continue to place emphasis on the improvement of product branding,
In light of the International Division that Tingzon inherited, where and how should Jollibee expand next?
Assessment:
Jollibee Foods Corporation recognizes that a reconfiguration of its international strategies will assist the company in embarking on a plethora of opportunities outside of its existing markets. New Guinea, Hong Kong, and the United States offer the chance for the company to grow its brand globally, but success is not guaranteed. Jollibee can capitalize on its regional success on a larger scale by undertaking a focused expansion strategy. The corporation should expand its operations in Hong Kong and enter the U.S. market for the following reasons:
• Hong Kong and the United States are markets that have high profit potential
• Jollibee could safely expand in these markets with the option to target the sizable Filipino expatriate population in each country
• Jollibee can use the Hong Kong and Unites States markets as an opportunity to gain mainstream notoriety
Recommendations
We recommend that Jollibee Foods undertake the following action plan to further its expansionary goals:
1) Establish a hybrid strategy consisting of the “plant-the-flag” approach and the “focus on expanding share in a few countries” approach.
a. Jollibee Foods reaped past success with the “plant-the-flag” approach but it must incorporate lessons learned from imprudent market selection such as the Middle East expansion. Making well-reasoned, careful choices to gain initial success in the U.S. via franchising while progressively expanding in Hong Kong where success has been previously achieved is paramount.
2) Transition from niche to mainstream markets
a. Jollibee needs to modify its regional South Pacific brand strategy that has a limited customer base to a global brand allowing it to achieve enhanced brand exposure and diversification. The corporation should also continue to place emphasis on the improvement of product branding,