The case gives an idea about how the competition influenced Jollibee's strategy, both domestic and international. Jollibee ,which was a Filipino chain of restaurants, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company .The company faced serious challenges with their international exposure. The challenges included the conflicts with franchisees/Joint venture and conflicts between divisions. Another issue that the company faced was the entry into Papa New Guinea, United States of America and expansion plans in Hong Kong. The company has to consider the financial instability it faces while ...view middle of the document...
3. It is usually a part of a chain or franchise operation, which supplies standardized ingredients and/or partially prepared foods and provisions to each restaurant through controlled supply channels.
McDonald's is one of the most famous RSE in the world. McDonald's became No.1 in every country of more than 100 countries in the world except Philippines where JFC has been overwhelming strength against McDonald's.
JFC was founded by Chinese-Filipino Mr. Tony Tan Caktiong (TTC) as the ice-cream parlor at Cubao City in 1975. Gradually, it grew up to a reasonably large fast food chain in Philippines.
Further, JFC started scouting avenues for expansion internationally. Thus it opened its franchises in countries like U.S.A., Brunei, Hong Kong, Guam, Middle East, etc.
Assuming, Mc Donald's was the chief competitor of JFC in Philippines we have made an analysis of the strategies adopted by both the organizations.
In order to analyze the strategy, we have utilized the following two tools.
a) Four-Tier Structure of Market
b) Type of Glocalization
A. FOUR-TIER STRUCTURE OF MARKET
Khanna & Palepu (2006) introduced the Four-Tiered Structure of Market. They insisted that most product markets comprise four distinct tires: global, glocal, local, and regional.
In Global segment, products of global quality with global features at global prices are offered. In Glocal segment, products of global quality with local features (and local soul) at less than global prices are offered. In local segment, local products with local features at local prices are offered.
B. TYPE OF GLOCALIZATION
As objectives of glocalization can be product/service and business model, there are two types of glocalization.
Business model glocalization.
The following charts give an overview of strategies adopted by JFC and Mc Donald's.
a. Porter's competitive strategies Model
b. Type of Glocalization (Products/Services vs. Business Model)
b. Firm Analysis
SWOT ANALYSIS OF JFC:
a. Jollibee was a regional industry leader that had experienced professionals as chief executives of the organization.
b. Proven past performance made dealings with prospective partners easier.
c. Wide variety of products offered in diverse markets.
a. Lacked more effective marketing skills as growth revenues decreased.
b. Lack on in-depth planning and research in the expansion to foreign markets.
c. Poor co-ordination between the national and international units.
a. The promising nature of international markets and also the available potential due to the migration of Filipinos in certain countries.
b. Being an agricultural country, full integration in sourcing raw materials could be done.
c. For international markets, locating commissaries in the same country through joint ventures could be a potential source of success for the company. Jollibee could facilitate the technology provision while the partner...