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Jollibee Case 1

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

Jollibee was able to build its dominant position by becoming more flexible than McDonalds. Jollibee took advantage of their competitor’s lack of flexibility by understanding local customer’s tastes and needs. Jollibee understood the locals preferred the taste of their sandwich over McDonalds and also attacked by releasing their own massive burger to compete with the Big Mac.

Jollibee was the first to introduce burgers in the Philippines which shaped the expectations of the customers. McDonalds was not flexible enough to adapt to the locals preferred tastes. Jollibee’s creative, custom menu kept their customers returning and loyal.

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?

Kitchner believed in the sprinkler approach and the first-mover advantage which he initiated expansion rapidly. In the long run, most franchising would need to meet specific sales levels in order to afford necessary promotion and advertising to build brand awareness. I see his effectiveness as failure due to his strategy for entry. The strategic thrust may just only make sense short term.

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

Tingzon had learned the importance of selecting a collaborative operating partner, choosing good locations, remaining flexible to address cultural distance issues, and the need for profitability. Tingzon received conflicting advice from different people within the organization on the best approach…...

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