Jollibee Foods Corporation Analysis Case

1041 words 5 pages
Case Question:
In light of the International Division that Tingzon inherited, where and how should Jollibee expand next?

Assessment:
Jollibee Foods Corporation recognizes that a reconfiguration of its international strategies will assist the company in embarking on a plethora of opportunities outside of its existing markets. New Guinea, Hong Kong, and the United States offer the chance for the company to grow its brand globally, but success is not guaranteed. Jollibee can capitalize on its regional success on a larger scale by undertaking a focused expansion strategy. The corporation should expand its operations in Hong Kong and enter the U.S. market for the following reasons:

• Hong Kong and the United States are markets that
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The corporation could enter this market and set the standard for fast food and discourage future entrants. Jollibee would incur very low financial expense due to covered development costs by willing franchisees. The restaurants would be positioned in petroleum stations to attract the customer traffic needed to make desired profits.

Cons:
There is uncertainty surrounding the possibility of the country supporting the 20 stores needed to achieve targeted critical mass for new markets. The GNP per capita for New Guinea is substantially lower than the per capita in Jollibee’s domestic market and could very well be a financial risk over the long term.

Alternative #2
Not expanding in Hong Kong

Pros:
Because serious cultural gaps exist between the corporation and native Chinese, Jollibee could use the opportunity of not expanding in Hong Kong to conduct research of other potential areas of interest. Not expanding in this market would also save Jollibee the time and money to develop alternative menu offerings that would be suitable to Chinese consumers’ preferences.

Cons:
The Hong Kong market is attractive and an expansion in the Kowloon district could help to attract a large number of customers. The store placement would assist in Jollibee’s brand recognition issues with this particular market but this would take a considerable investment of time and money. Jollibee could lose the opportunity of gaining exposure and earning high profits in a growing

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