Jollibee

1836 words 8 pages
Jollibee Foods Corporation: International Expansion

1.1. What sources of competitive advantage was it able to develop against McDonald's in its home market?

Firstly, Jollibee was the first mover in the sector of burgers in Philippines, shaping customer preferences and expectations, instead of McDonald's or KFC.

Secondly, Jollibee was young, and very small in comparison of McDonald's whose force worldwide is standardization. The burger company serves millions of exactly identical sandwich each year in dozen of countries so that McDonald's customers can find their favourite BigMac taste wherever they go. McDonald's is used to reducing costs by having huge economies of scale. But on new markets, such as Philippines, this strength can turn
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At least there is a ready customer base in such countries.

He implements his priorities effectively as he is innovative in trying to make the brand international and develop organization by forming international division, including modifying the uniform, logo, store decoration, slogan, packaging and so many more. Kitchner has good skills in management and pluricutural idea. He gets through the research of the new market directly and recruits the qualified people to be in the right positions. Kitchner did not make the same mistakes as McDonald's. He hired local managers highly involved in the decision process. He insisted on adapting the design of the franchisees to the local tastes and habits. Jollibee restaurant were thus an interesting mix of Jollibee standard design and functionality and local arrangement, created by both locals and managers from the international division of Jollibee. This ‘Global' (globally locally focused) approach and culture were very relevant, especially in the food retail sector allowing Jollibee to enjoy large economies of scale without hurting too much the local mentalities and habits. Furthermore, the TTC's view of franchisee (assisting more than controlling), allowed creativity and flexibility. This approach should generate valuable ideas and techniques for the

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