In particular, they argue that companies based in developing nations should use the entry of

foreign multinationals as an opportunity to learn from these competitors by benchmarking their

operations and performance against them. Furthermore, they suggest that the local company may
be able to find ways to differentiate itself from a foreign multinational

for example, by focusing on market niches that the multinational ignores or is unable to serve
effectively if it has a standardized global product offering, Having improved its performance
through learning and differentiated its product offering, the firm from a developing nation may
then be able to pursue its own international expansion strategy.
Even though the firm may be a late entrant into many countries, by benchmarking and then
differentiating itself from early movers in global markets, the firm from the developing nation may
still be able to build a strong international business presence. A good example of how this can
work is given in the accompanying Management Focus at left, which looks at how Jollibee, a
Philippinesbased fast-food chain, has started to build a global presence in a market dominated by
U.S. multinationals such as McDonald’s and KFC

Chapter Twelve Entering Foreign Markets

This case took place in Greece. Here, McDonald’s was the longstanding fast-
food market leader until a local fast-food brand, Goody’s Restaurant, eventually
“left behind the international chain McDonald’s.”
If we can uncover how Goody’s did it and then compare this causal factor to how
Jollibee stayed ahead of McDonald’s in the Philippines, then we have succeeded
in insighting the true story and the true key to the puzzle. According to media
reports, in Greece, it was Goody’s persistence tailoring of its fast-food menu
items to the local taste and preferences of the Greeks that slowly but surely drew
more and more of the fast-food customers toward Goody’s and more and more
away from McDonald’s.  McDonald’s followed its founder’s (Ray Kroc)
standards for fast-food menu.

Many say that McDonald’s was slow to learn this and adapt. The truth is that it’s
the “bureaucracy” at Headquarters in Oak Brook, Illinois, that was responsible
for why McDonalds Philippines took such a long time to come out with a “built-
in taste” hamburger to challenge Jollibee’s. So, a key factor in Jollibee’s market
share leadership comes from its “customer intimacy,” its tailoring its menu
items to the changing Filipino palate.

This insight then negates the proposition that it was Jollibee’s first mover
advantage that’s responsible for preventing McDonald’s in taking over market
leadership.  In sum, it’s adhering to “consumer centricity,” to honoring the
“consumer-is- king” rule that’s the secret to market leadership.
Read more: http://business.inquirer.net/93156/how-come-
mcdonalds-never-beat-jollibee-as-market-leader#ixzz3z4TfUwrp 
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"We found that they excelled over us in all aspects – except product taste... It suited Americans but not really
Filipinos. Our (food) tends to be sweeter, more spices, more salty. We were lucky as it was not easy for them
to change their product because of their global image," Tan told Forbes Asia. 

"We were surprised customers ranked us higher in courtesy and service style. Maybe they felt we were
warmer? And then they liked our marketing, promotion and advertising better. And then customers kept just
coming back," he said. 

"We keep things simple and fill a simple need: very tasty food at a reasonable price. To this day I repeat to my
people what my father told me – you have to make sure your food tastes really good," Tan said. 

http://k2.abs-cbnnews.com/business/02/11/13/how-jollibee-beat-mcdonalds-
philippines