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Jollibee Global Expansion. EXECUTIVE SUMMARY Jollibee was able to attain
a competitive advantage over McDonald’s by doing two things ...
... was hired to build the global Jollibee brand with the dual goals of positioning
Jollibee as an attractive partner, while generating resources for expansion. ...
... related to events that surrounded a global fuel crisis ... planning growth in other Asian
markets (Jollibee, 2006 ... While expansion was initially due to local economic ...
... Jollibee Foods Corporation: International Expansion 1.1. ... from the international division
of Jollibee. This ‘Global’ (globally locally focused) approach and ...
... enabled the firm's success and expansion in Manila ... McDonald's hamburgers came from
a global recipe that ... In addition, Jollibee's dominant position stemmed from a ...
Submitted by spicyxtreme on December 6, 2007
Category: Business
Words: 1596 | Pages: 7
Views: 391
Popularity Rank: 22,709
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EXECUTIVE SUMMARY
Jollibee was able to attain a competitive advantage over McDonald’s by doing two things: (1) Retaining tight control over operations management, which allowed it to price below its competitor and (2) Having the flexibility to cater to the tastes of its local consumers. While Tony Kitchner was hired to develop these competitive advantages abroad, his international strategy of “planting the flag” and “targeting expats” was executed haphazardly and resulted in losses for the firm. His eventual dismissal was largely due to his inability to manage intra-firm tensions.
The arrival of Noli Tingzon marks a critical juncture for Jollibee, where it will begin entering the US market. The key to Jollibee’s success in Daly City will be its ability to find a local partner that can leverage its organizational advantage, while navigating the challenges of conducting business in the United States.
I. Creating Competitive Advantages in the Filipino market
Jollibee’s success in its home market developed as a result of its ability to better meet the needs of the Filipino customer. Although its success was mediated by the political and economic crises of 1983, Jollibee was still able to deliver a product that was both cheaper and better tasting than that of McDonald’s. The ability of Jollibee to adopt its menu to local tastes, as well as the “5 Fs” of its operations management are two organizational capabilities that led the company to develop a competitive advantage over McDonald’s.
The ability to push forward the Champ burger highlights another source of competitive advantage that was recognized by Tom Kitchner: flexibility. As one of the “5 Fs,” flexibility was an asset that Jollibee, could leverage more easily than McDonald’s. As a younger company, Jollibee has the ability to adapt its menu items without jeopardizing its brand image. It also has the advantage of having a flatter organizational structure that...
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