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PORTER’S FIVE FORCES ANALYSIS

Pamantasan ng Lungsod ng Maynila

School of Business: Financial Management

Strategic Management

CBM 0012-4

PORTER'S FIVE FORCES ANALYSIS

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Submitted by:

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Jallorina, Fracel G.
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Manzon, Arlene N.
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Marasigan, Aienna Mae A.

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Ofemia, Lie Anne V.

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Roces, Celestine Raye T.

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Soriano, Stephanie L.
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Trillanes, Shaira Nicole E.

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Submitted to:

Professor Jullianne Blair L. Coco

October 30, 2020

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PORTER’S FIVE FORCES ANALYSIS

PORTER’S FIVE FORCES ANALYSIS

POTENTIAL ENTRY OF NEW COMPETITORS

The potential entry of new competitors in the Jollibee Foods Corporation can be

considered as medium in level. Starting a fast-food business requires high amount of capital and

resource investment. You will also need licenses and permits in starting your business. The fast-

food industry is dominated by different brands with likely similar products offered. Jollibee’s

brand establish a loyal customer base and create a brand image that is known globally. However,

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threat may exist if their companies produce unique offering to introduce into the fast food market

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but these unique product offerings must be align with the consumer preferences. Therefore, the

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threat of new entrants into the fast-food industry can be possible if there is a new food options
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that becomes a trend.
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BARGAINING POWER OF CONSUMERS

The bargaining power of consumers is high. Consumers have the ability to choose
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from different fast-food suppliers that are in their country’s market segment. In addition, they can
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control the buying and purchasing process based on their preferred food. There are certain factors
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that can affect purchasing power of consumers. First, the amount of money spent can be
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influenced by the quality of food, service, or the environment. Second, market are able to check

price comparisons in the internet. Third, brand loyalty is one of the factors that may influence
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their preferred food. If the brand loyalty is low, then price could be one of the factor the

purchasing decision. Thus, brand loyalty makes the consumers purchase from a brand repeatedly.

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PORTER’S FIVE FORCES ANALYSIS

Lastly, price sensitivity also influence in purchasing option. It is because of economic recession

and unemployment of people. Therefore, economic situations must considered when purchasing.

BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers of Jollibee Foods Corporation is low. Fast food

industry has tons of supplier since they are producing products to a lot of customers, so changing

of suppliers would not be difficult nor change the production of Jollibee food corporations at all.

The only problem is that when a supplier would also have a contract with a certain business or

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brand. The supplier could use their power to control the prices of their products against a

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business. However, this only depends upon the terms and agreement that have been negotiated

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between businesses.
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POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCTS

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The potential development of substitutes products is high in the Jollibee Foods

Corporation. Since Jollibee is good in adapting and coping with the culture and what the
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consumers like, they can create food that suits the taste of the consumers, especially the Filipino.

However, threats of substitutes products are also high. One of the threats are consumers wants a
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healthier option of foods. The cost of the product also influences the purchasing option of the
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consumer for example in some company they offer more affordable or much delicious than

Jollibee’s products.
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RIVALRY AMONG COMPETING FIRMS

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PORTER’S FIVE FORCES ANALYSIS

Rivalry among competing firms in Jollibee Foods Corporations is high. The brand of

a company can influence the food preferences of a consumer. Fast-food brands uses promotions

to compete with the other brands promotional offers. Developing a successful marketing mix is

also one of the key in becoming successful in this industry. They should consider the 4Ps of the

marketing mix which are the product, promotions, prices and place. Product refers to the items

being offered by a business to its consumers. Second, promotions are defined as the deals that a

company offers to set brands apart from each other. Third, prices shows the monetary value of a

product. Lastly, place is the location of your business. This 4Ps are important in starting a

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business and also for gaining customers.

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References

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https://www.coursehero.com/file/72251250/PORTERS-FIVE-FORCES-ANALYSIS-OF-JOLLIBEEdocx/
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PORTER’S FIVE FORCES ANALYSIS

BusinessToYou. (2016). Industry Analysis. Porter’s Five Forces. Retrieved on October

25, 2020 from https://www.business-to-you.com/porters-five-forces/

Henry, Z. (2018). Case48. Jollibee Foods Corporation Porter Five Forces Analysis.

Retrieved on October 25, 2020 from https://www.case48.com/porter-case/10981-Jollibee-Foods-

Corporation

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This study source was downloaded by 100000806905549 from CourseHero.com on 12-07-2021 21:50:40 GMT -06:00

https://www.coursehero.com/file/72251250/PORTERS-FIVE-FORCES-ANALYSIS-OF-JOLLIBEEdocx/
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