SWOT Analysis: Jollibee
Bill Albert M. Escorpiso
STRENGTHS
1. Strong management
performance, Jollibee saw an
increase both in sales and
operating revenue; 16.9% and
31.0% respectively, due to
excellent operations management
and strong revenue generation of
the Jollibee brand.
2. High quality products,
Jollibee serves delicious food
products and makes it unique
with the iconic “filipino flavors”
compared to what the competition
offers.
3. Solid franchising investment
Jollibee is an excellent choice for
future franchisees because it is a
recognized brand.
4. Great brand reputation
Jollibee is an established brand
that has a long track record of
success.
5. Innovation,
Jollibee is an innovator and
introduces new products or limited
time deals that keeps things fresh
and customers wanting to come
back.
OPPORTUNITIES SO Strategies
1. Invest resources in
1. Opportunity for developing and improving an
international expansion, app, instead of relying on delivery
service companies to decrease
Jollibee aims to expand to
distribution costs by around 15%
other foreign markets as
to 30% by using the increased
part of their CEO’s plans revenue as a result of strong
for global expansion management performance.
2. Rising demand in e- (S1,S2,S4,O4)
commerce, 2. Focus on penetrating to
foreign markets,
COVID-19 saw the
JFC should capitalize on the
increase of e-commerce
growth in sales and operating
and the trend has not died revenue by continuing to expand
down since. to other countries by acquiring
3. Strategic company local companies where Jollibee
acquisitions, wants to penetrate to increase
market share. (S1,S3,O1,O3)
Jollibee can acquire
popular food chains in
WEAKNESSES
1. Limited menu options,
Although iconic, the staples of
Jollibee which are the Chickenjoy
and the Burgetsteak are getting
boring, consumers may want more
variety.
2. Lacking in the technology
department,
Jollibee is lacking in technological
innovation in terms of improving
operational efficiency
3. Lack of food consistency
Jollibee food products are
sometimes not consistent with
other branches, some branches
may slightly below average quality
products compared to others.
4. Trouble balancing supply with
demand,
Jollibee has a lot of branches
worldwide, so there is the
possibility of not having enough
food supply for every branch
because of current demands and
insufficient supply chain
management.
WO Strategies
1. Implementation of digital self
checkout kiosks,
Implementation of such technology
should increase the speed on
which customers order food, which
means more revenue and
allocation of staff elsewhere. Which
can be achieved by using the
increased revenue. (W2,O4)
2. Acquire local food suppliers,
Utilize strategic company
acquisitions to acquire multiple
suppliers and impose strict quality
control to improve food consistency
with each branch, and to make sure
that every branch of Jollibee has
enough inventory to serve to
customers. (W3,W4,O3)
foreign markets to gain
market share
4. New technology,
Technological
advancements make
business transactions
more convenient and
faster.
THREATS
1. Intense competition
with rival companies,
with companies like
McDonalds
2. Society becoming
more health conscious,
rising movement of people
opting for healthier food
options
3. Cost of raw materials
increasing due to
inflation,
Increased prices for raw
materials means an
increase in product pricing
5. Growing
environmental concerns,
the current state of the
environment calls for use
of sustainable resources
ST Strategies
1. Release healthier food
options,
Create a new menu for health
conscious customers. (S5,T2)
2. Invest in renewable sources
of energy,
By capitalizing on the strong
management performance and
increased revenue, investing in
renewable energy is a great way
to gain goodwill. (S1,S5,T5)
3. Capitalize on good
operational management,
To decrease the operational costs
in order to increase the budget of
raw material acquisition whilst
keeping the prices low.
4. Negotiate with suppliers
using the strong brand of
Jollibee,
Leverage the value of Jollibee
and the flexibility to negotiate with
others as a bargaining tool.
(S4,T3)
WT Strategies
1. Implement strategic marketing
promos, and new services, and
new food products,
releasing a new menu option can
give Jollibee the competitive
advantage against competitors. By
creating a whole new menu that will
showcase variety, and ease the
supply and demand issues
because consumers are now
presented with new products to
choose from, aside from the usual
Chickenjoy and Burgersteak.
(W1,T1,T4)