Jollibee Case Study
Jollibee Case Study
4. Evaluate JFC’s performance overseas. To What extent can the company tranter its core
competency to its international market operation? Should it modify its consumer-driven
strategies to suit foreign market, even if that means Jollibee becomes much less ‘Philippine’
in nature?
When Jollibee started operations overseas, its target segment was the OFW (Overseas
Filipino Workers). JFC was operating in Hong Kong, Saipan & Guam, Vietnam, Brunei,
Indonesia, Dubai, Kuwait and United States. They also approached people of various ethnic
groups and the feedback received was very positive. Unfortunately, the company did not
invest huge due to its management capabilities and only invested in areas where there were
huge masses of Filipinos.
For Jollibee to grow, it depends on how far they are willing to take it. If they stick to
Philippine in nature concept and do not diversify their food, they won’t move forward. They
can succeed if they keep their core competency the same but change the strategies according
to consumers taste and preferences, because by now the huge profits that they received from
their 1208 outlets enables them to expand big with a proper market research they can become
a bigger international brand.
JFC performances have not exemplary compared to other first food companies within the
market. Competition is stiff despite the presence of offering quality products to segmented
clients. The company should focus on transferring its core competency to its international
operations to ensure it is profitable and sustainable. Consumer-driven strategies would
influence customer loyalty suiting foreign markets even it means JFC becomes less
Philippine in nature.
Explanation
The international market requires great focus to deliver on the envisaged dream of the
organization. Organizations should seek to make the right strategies through investments to
improve performances. JFC has poor performances that have been documented from the past
financial documentation. Sales are lower compared to other competitive fast food outlets.
Customer loyalty has been enhanced among other competitive fast food outlet compared to
JFC. The company should prioritize to transfer core competency to its international
operations to ensure it remains relevant in the market. Developing marketing strategies that
would influence organizational success should be prioritized with the management.
Consumer-driven strategies should be prioritized with the management as it will attract
customers segmented. Consumer-driven strategies include price-friendly as well as offers that
would enhance satisfaction to clients. Increased customer satisfaction generate revenue to the
organization hence improving performances. Developing consumer products in line with the
foreign country preference should be adopted to attract segmented clients. The main focus
should be to create a loyal segment of customers to improve performance which is envisaged.
Question
Yes, I believe they should go international, but this needs extensive market research and
analysis in order to determine the countries they would most likely perform well
Explanation
This is because of the sustained good growth and proper establishment in the Philippines, and
in order to increase revenues and profits, they have to think beyond their boarders, just like
the way McDonalds has extended its operations to countries such as Canada and Japan
According to analysis, countries in the Middle East and the US would love their varieties, as
people love to try new delicacies, as seen in the growth and sustainability of KFC
There has to be a trade-off between the expected costs of expansion and the expected
benefits, and that's why market research would be integral in making this rational
determination
Jollibe has to go international to become more popular and also become a sustainable and
more profitable multinational
Remaining in the Philippines only would not be sustainable in the long term,because markets
change, and also, customer tastes and preferences change over time