Jollibee Research Paper

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1. ) How was Jollibee able to build its dominant position in fast food in the Philippines? What sources of competitive advantage it was able to develop against McDonald’s in its home market?

Ans. ) Jollibee was able to coup up very well during the oil crisis in 1977 with their innovative ideas. They have forecasted that the surge in oil price will have direct and adverse effect on the ice cream sector since the production costs are much higher for Ice cream business, thus they have migrated to Burgers.

This idea of moving to a new segment has clearly shown the ability of the decisive management team to act sharp at times of market crisis. The way in which the strategic decisions are carried out during this period was remarkable. It has defeated the existing cut-throat competitor Mc Donald’s and leading foreign investors at that time by producing more at a cheaper available price in the market.

They have invested their cash flow much on the production and delivered products that are delicious to the major customer base.

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The sales has grown tremendously which led to claim the dominance in the market and has become a leading brand passing ahead of McDonald’s. They took over Greenwich Pizza to enhance their market strengths by a way of consolidation and had a JV with DeliFrance. The approach was rational in the beginning days and they have studied the pulse of the American customer by introducing big burgers to counter Big Mac’s.

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The credit is to be awarded to the expert management team who has done intense R &D of the market and planned their finances accordingly.

Even though a new brand in the market in has stood firm to the rough waves of its competitor without giving any chance of tarnishing their brand value and market share. Sources of Competitive advantage: The major source was being the new and first of its kind competitor to the existing big brands in Philippines and attracting the customers with their products in delivering customer specific requirements, tastes and preferences. One interesting learning here is that Jollibee being a new entrant in the market has attracted the customers by understanding their tastes, which McDonald’s was unable to get hold of.

It’s small in number and has hit the right button of “Customer Satisfaction” as per the region preferences. It was so flexible that a big brand like McDonald’s couldn’t withstand the variety of items Filipinos prefer in their menu list attracting the locals with reasonable prices. The timeliness and strategic analysis of the market is the key to its huge success in Philippines.

2. ) How would you evaluate Tony Kitchner’s effectiveness as the first head of Jollibee’s international division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priorities?

Ans. ) As the first head of Jollibee kitchner has a vivid and vibrant focus on generating a huge brand value culminating in to a world class company, he has the attention to detail at all minor aspects of the business ranging from the dress code, vision, research of individual markets, local markets, plans for strategic menus at different segments of the markets as per the local preferences are well planned.

Opening of Franchise service Managers was a fantastic design, it has helped organizing the operational activities in a better and easy way in which proper control and management takes place centrally leading to commotion among the teams. Regular updates from regional level managers has boosted this system to overcome the negative feedbacks and rectify the same with immediate effect. Kitchner’s thinking of fast-mover advantages in the industry was very much adaptable that needs immediate attention and wide spread expansion.

In terms of marketing this idea has helped attract wide range of customers as the system believes that advertisement and promotion plays crucial role in brand recognition and awareness among the people about the brand. The plan was so dynamic that it gets flexible as per the market segment and the targeted audience which led to the success of this strategy due to its progressive outlay. He developed strategies and that were implemented efficiently and effectively to make an international brand by forming international division.

There were many criterion upon which it has reached to the existing volumes viz. dress code, catchy slogans, store ambience, packing, labelling and marketing. Administering right decisions at the right time was the key to the success of this business by hiring efficient managers who are experts in their respective fields and areas, and has made sure that it won’t hit the mistakes doe by its competitor.

3. ) As Noli Tingzon, how would you deal with the three options described at the end of the case? How would you implement your decision?

Ans. Papua new Guinea, Hongkong and California were the 2 new regions given to the new international manager for further expanding Jollibee. The best option in my view for Tingzon is to have franchise in California rather than the other two, reason being CA has better market condition vis-a-vis other 2 regions. Daly city has very less foreign fast food chain competition which can be a value addition to the franchise to get hold of the base market opportunity.

Moreover CA has more Filipino population compared to the other 2 regions as per the data available and most of the immigrants from Phillipines are working professionals. Thus they are economically rich and are suitable for purchasing their products of JFC, which was learnt from the previous experiences in the Middle east region. The menu may be designed as per the Filipino preferences and there will be reduced last minute changes to the order unlike ME experiences. Since, the CA option looks greener from the initial research perspective but at the same time we should undermine the other two options at this point of time.

IF the franchise wants to attract a wider customer base of various cultures and nationalities the JFC should change the menu accordingly to fit into the vast culturally diverse regions like HK and PNG, if it has the plans to open stores in these regions. Tingzon should also focus on creating awareness among the customer about their products through a well-structured promotion plan through local digital media houses to print media. This will give the needed information about the new launch of the franchise to the wider customer needs.

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Jollibee Research Paper
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