Jolibee Case Analysis

3350 words - 13 pages

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Case study 2:Jollibee Foods Corporation: International ExpansionCase BackgroundJollibee is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei, firmly establishing itself as a growing international QSR player.1975: Tony Tan and his family opened a Magnolia Ice Cream parlor in CubaoFamily run.TTC's vision of employees is working happily and efficiency, like bees in a hive.Philosophy: Five FsFriendlinessFlavorful foodFun atmosphereFlexibilityFocus on families1978: five stores in Metro Manila, the family incorporated as Jollibee Foods Corporation.In 1978 and 1979, in its first years as a burger chain, Jollibee launched its first successful products, the Jollibee Yumburger and Jollibee Spaghetti, both having tastes that suit to Filipino palates.1981: McDonal's entered the Philippines- the first serious challenge arose. At this time Jollibee already had 11 stores.1983-1986:Aug-1983: Political and economic crisis made foreign investors including McDonald's slowdown their investment.1986: Although the crisis had passed and McDonals reinvest again but at that time Jollibee already had 31 stores and was clearly the dominant presence in the market.Moving offshore: 1986-1997Singapore 1985: The franchise was owned by a partnership consisting of Jollibee, the local manager, and five Philippines-Chinese investors. This contract was revoked in 1986 and they shutdown Singapore store.Taiwan 1986-1988: Opened soon after Singapore and then also dissolved partnership and pulled out of Taiwan in 1988Brunei 1987: joint venture with a Shoemart partner in Brunei. By end of 1993: successful with 4 stores in Brunei.Indonesia 1989: opened first store in Jakarta but faced too many strong competitors and have conflict with local partner. After all, in late 1994, they dissolved the partnership and sold the operation to a new franchise.1994: TTC hired an experienced outsider as Vice President for International Operations-Tony Kitchner, a native Australia. He hired more specialist from inside and outside Jollibee to create International Division.Strategy: two main themes"Targeting expat" and "planting the flag."He expanded rapidly, during Nov 1994 to Dec 1996; the company entered 8 new national markets and opened 18 new stores. The flag was being planted. (Exhibit 6)1997: Kitchner left Jollibee to go back Australia. After that, Manopo P. Zington, one of the industry most experienced managers was joined the company in July 1997 as general manager, International division.Environmental AnalysisGeneral environment:In the local Philippines context, the million consumers walking into Jollibee's stores daily present strong demand for its...

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