A CASE ANALYSIS: JOLLIBEE FOODS CORPORATION

In Partial Fulfillment

Of the Requirements for the Course

Applied Economics (For Non-ABM)

THBC 003

Submitted by:

GROUP 2

GROUP MEMBERS’ NAME

Abay-abay, Jimberlyn
Cabrera, Jocelyn Mae
Dale, Kemman
Estoque, Gerlie

Submitted to:

Ms. Rodelyn Jane D. Enoc

December 20, 2023

 I. INTRODUCTION

Jollibee Foods International was developed in 1975 as an ice cream parlor and soon it
expanded as a local restaurant located in the Philippines. Due to the company’s high food
quality, food taste, and environment, the restaurant gained much popularity. With increasing
food demand, the company was able to compete with McDonalds and other international
food chains. This gave the company the confidence to move abroad and be an international
seller. Trying many different strategies in different countries, the company was failed and
unable to expand itself.
The competition influenced Jollibee's strategy, both domestic and international. The
company faced serious challenges with its international exposure. The challenges included
conflicts with franchisees/Joint ventures and conflicts between divisions. The company has
to consider the financial instability faces while considering its plans for international
expansion. This study will analyze the market strategies and other factors that affect Jollibee
food for international expansion. The case solution focuses on understanding the central
issue(s) in the case. The case study solution then uses strategic tools and models to solve
the case and makes strategic recommendations for the Jollibee Foods Corporation (Abratt &
Bendixen, 2018; Iacobucci, 2021).

II. COMPANY BACKGROUND

Jollibee Foods Corporation (JFC) emerged in 1978 when Tony Tan Caktiong, along with
his family, transformed a modest ice cream parlor in Quezon City, Philippines, into the
beginning of a fast-food empire. This move marked the inception of Jollibee, with its iconic
mascot, Jollibee the bee, symbolizing joy and the brand's Filipino roots.
Facing stiff competition from established global fast-food chains, Jollibee set itself apart
by blending Western-style fast food with distinctly Filipino flavors. The menu featured a
fusion of local comfort foods and international offerings, resonating strongly with the Filipino
palate.
The 1980s witnessed Jollibee's expansion into the international arena, starting with the
opening of its first store in Taiwan in 1986. This foray into foreign markets continued, with
subsequent entries into other Asian countries and eventually reaching the United States.
Jollibee's adaptability and commitment to local tastes played a crucial role in overcoming
challenges in the global market.
JFC's growth strategy extended beyond the flagship Jollibee brand. Through strategic
acquisitions, the company diversified its portfolio, incorporating popular chains such as
Greenwich, Chowking, Red Ribbon, and Mang Inasal. This expansion not only broadened
JFC's offerings but also solidified its position in the competitive fast-food landscape.
In the 21st century, Jollibee continued its global expansion, opening stores in the Middle
East, Europe, and North America. The acquisition of the American burger chain
Smashburger in 2018 further bolstered the company's presence in the United States.
Amidst the challenges posed by a dynamic industry, Jollibee remained resilient. The
company invested in research and development, introducing new menu items and
innovations to meet evolving consumer preferences. Corporate social responsibility became
a key focus, with JFC engaging in sustainable sourcing practices and community
development projects.
SWOT Analysis

The acronym Jollibee Foods Corporation case analysis SWOT stands for strength,
weakness, threats and opportunities. It is a useful tool that is widely used for strategic
planning and management in many organizations. It is effectively used in building strategies
for the organization to maintain its competitiveness in the market. It is simple yet powerful
tool that help the organization in identifying its existing resources, capabilities, deficiencies,
the existing opportunities and threats prevailing in the market.
Strengths
Jollibee Foods Corporation case analysis refers strength as a characteristic that adds value
to something by making it more special, unique and advantageous when compared. In this
element of SWOT, the abilities and the key properties of organization are discussed that
gives an organization an advantage over other organizations by making it more competitive.
It defines the characteristics and situations of an organization which makes it more effective
and efficient when compare with its competitors.
1. Strong Brand Identity - Jollibee has a well-established and iconic brand in the Philippines
and beyond, known for its unique fusion of Filipino and international flavors.
2. Global Presence - With a widespread international presence, Jollibee has successfully
expanded into various markets, adapting its offerings to cater to local tastes.
3. Diversified Portfolio - Through strategic acquisitions, Jollibee has built a diverse portfolio
of brands, offering a range of cuisines, including burgers, noodles, and pastries.
4. Customer Loyalty - Jollibee enjoys a loyal customer base, driven by a deep connection
with Filipino culture and a history of providing affordable and quality fast food.
Weaknesses
Jollibee Foods Corporation case analysis weakness refer to the situation in which the
existing capabilities and the resources the company holds are weaker or not sufficient
compared to others organizations in the market. In other words, it means the aspects in
which the organization is less efficient and needs to improve in order to align with the market
trends. As these aspects negatively affect the overall performance of the organization by
making it weaker compared to its competitors.
1. Dependency on Philippine Market - While Jollibee has expanded globally, it still relies
heavily on the Philippine market. Economic fluctuations in the country can impact overall
performance.
2. Competition in International Markets - In international markets, Jollibee faces intense
competition from established global fast-food chains, requiring continuous innovation and
adaptation.
3. Supply Chain Challenges - Operating globally presents challenges in managing and
optimizing the supply chain, ensuring consistent quality across different locations.
Opportunities
Jollibee Foods Corporation case analysis opportunity is an advantage and the driving force
for an organization. It is the convenient time or situation that is present in the environment
and will help the organization in achieving its goals. It is a factor that contribute positively
towards the growth of the organization. It is a condition existing in the external environment
that allow the organization to take an advantage of the organizational strengths, and help in
overcoming the weaknesses and to neutralize the threats present in the environment.
1. Global Market Expansion - Opportunities exist for further expansion into untapped
markets, capitalizing on the popularity of Filipino flavors and adapting to local preferences.
2. Innovation in Menu Offerings - Continued innovation in menu items, incorporating health-
conscious choices and catering to evolving consumer preferences, can attract new
customers.
3. Technology Integration - Leveraging technology for online ordering, delivery services, and
loyalty programs can enhance customer convenience and satisfaction.
Threats
Jollibee Foods Corporation case analysis threats are the factors that prevent the
organization from the actualization of an activity. It is an unfavorable situation that exist in
the environment making it difficult for the organization to achieve its defined goals. It is a
situation that arises as a result of the changes that took place in the immediate or distant
environment, preventing the organization from maintaining its existence and superiority in
the growing competition and are disadvantageous for the organization.
1. Economic Instability - Economic uncertainties in key markets could impact consumer
spending, potentially affecting Jollibee's sales and profitability.
2. Changing Consumer Preferences - Shifts in consumer preferences towards healthier
options or alternative food choices may pose a threat to traditional fast-food offerings.
3. Global Supply Chain Disruptions - Events such as natural disasters, geopolitical tensions,
or pandemics can disrupt the global supply chain, affecting the availability of key ingredients
and operations.

PESTLE Analysis

Political
 Government policies and regulations may hamper the future prospects of the fast-
food industry in certain countries.
 The Jollibee Foods Corporation is directly impacted by the policies and regulations
devised by the governments in its host as well as home countries (Chernev, 2018).
Economic
 Lower interest rates facilitate the Jollibee Foods Corporation as it leads to increased
instances of borrowing.
 Lower interest rates also lead to increased consumer power, and increased demand
for products of Jollibee Foods Corporation (Deepak & Jeyakumar, 2019).
 The operations and demand for Jollibee Foods Corporation are directly influenced
by the GDP and economic growth in the countries where it operates and exports
(Buchanan & Huczynski, 2019).
Social
 Increased focus on education and higher literacy rates have allowed the Jollibee
Foods Corporation to benefit from a more skilled and talented labor pool.
 The higher portion of the youth has also benefitted the Jollibee Foods Corporation in
creating a high demand for its products and services (Iacobucci, 2021).
  Assessment of the population and consumer trends have allowed the Jollibee
Foods Corporation to refine its segmentation and targeting strategies – leading to
improved positioning of its portfolio offering (De Mooij, 2019).

Technological
 Jollibee Foods Corporation has high internal innovation capabilities.
 Jollibee Foods Corporation invests in research and development for improved
creativity and technological progress.
 The Jollibee Foods Corporation makes use of innovative and advanced technology to
make its internal processes more efficient and work towards achieving economies of
scale.
 Jollibee Foods Corporation also benefits from knowledge sharing through global
operations and transfers technology internally (Baines, Fill, & Rosengren, 2017).
Legal
 The Jollibee Foods Corporation ensures to follow the equal employment and equal
opportunity law.
 Through the equal opportunity act and regulations, the Jollibee Foods Corporation
ensures that it does not discriminate against different groups in its HUMAN
RESOURCE MANAGEMENT practices.
 The Jollibee Foods Corporation also ensures to abide by the health and safety
regulations.
 The Jollibee Foods Corporation makes sure to follow regulations regarding
employment contracts and employer responsibilities to ensure fair policy-making and
high performance (Lasserre, 2017).
Environmental

 The Jollibee Foods Corporation follows and abides by environmental regulations

imposed in various countries.
 Consumers for Jollibee Foods Corporation have rapidly adopted green lifestyles and
green consumption.
 Incorporating environmentalism into its strategic goals and direction has enabled the
Jollibee Foods Corporation to become more efficient in this resource allocation
(Stead & Stead, 2014).

III. ALTERNATIVES

The particular section deals with the different ways the problem can be resolved. In a
particular section, the management/teams develop different options through which the
problem can be resolved. Many times, these options are already in hand with the
management or re-developed from scratch through strong brainstorming.
This factor includes consideration of the following:
A. Diversification – Jollibee could use diversification to expand its business by acquiring
internationally known companies.
B. Market Development
– Being geographic set-up as the main focus of the company, Jollibee Foods Corporation
could develop franchise partners toward countries with existing Filipino minorities.
C. Co-Branding of Existing Company – Jollibee Foods Corporation could use branding by
using JFC’s existing businesses such as Red Ribbons, Chowking, Burger King Philippines,
to partner up. A JFC owned business will create products that will give Jollibee brand
recognition.
A. Diversification
Pros
The intent of the franchisee is a great indicator of the direction of the company. Tells the
franchisee is aiming. Jollibee Foods Corporation can take advantage of existing expertise,
knowledge, and resources in the company when expanding into new activities. This may
result in transfer of skills, such a research and development of knowledge and sharing of
resources.
Cons
Diversification is considered the riskiest and the most expensive form of strategy since it
involves new products and new market bundled into one.
B. Market Development
Pros
The spreading of risks by multiplying the number of locations through other people’s
investment means faster network expansion and a better opportunity to focus on changing
market needs. Marketing on existing Filipinos mean that it is a safe bet for the company
since Filipinos are very aware of the brand image of Jollibee already.
Cons
The franchisor is required to have the appropriate resources to recruit, train, and support
franchisees. At the beginning of the franchise program, there is a broader risk that the trade
name can be spoiled by misfits until such time the franchisor is capable of selecting the right
candidate for the business.
C. Co-Branding
Pros
Since Jollibee Foods Corporation already owned a huge portion if not all of its acquired
business, then extensive research and expenses are not as great since JFC already has its
viable resources. Co-branding can increase the visibility and market share of both
franchises. Co-branding allows individual franchises to share promotional and running
costs. This can be especially important with national franchise brands.
Cons
A disadvantage of co-branding is the need for a complex joint-venture and profit-sharing
agreement. Reaching an agreement on co-branding can be a time-consuming and
a complex process, generally involving lengthy negotiations and complicated legal
agreements. Whatever legal and financial agreements the franchises come to, neither
franchise must have a differential or financial advantage over the other.

IV. PROPOSED SOLUTION

The Jollibee Foods Corp needs to strategically align its resources for optimization and to
achieve its strategic goals and targets, It can engage in informative and emotional marketing
to appeal to the target audience in the market and increase brand awareness can devise
and run educational campaigns to help understand the importance of the product, and its
need (Išoraitė, 2016). The Jollibee Foods Corp should continue to use its internal capabilities
to realize new opportunities and mitigate risks and weaknesses.
In addition, the Jollibee Foods Corp should also make use of other strategic models to
understand the managerial challenges that the organization faces and devise suitable
strategies and actions for overcoming them, it should have a strong retail setup and a strong
distribution network across the globe (Gillespie & Swan, 2021; Chernev, 2018). The
leadership of Jollibee Foods Corp will play a critical role in ensuring that the organization
overcomes the challenges by focusing on the organizational culture and values, which will
then impact the operations and performance at large. The core strengths and competencies
of Jollibee Foods Corp form an important part of the company’s value chain (Chernev, 2018;
Anthony, 2021).

V. CONCLUSION/RECOMMENDATIONS

There are different recommendations that this case analysis wants to expand in the
Jollibee food corporation to have a better strategy in the international market and to mitigate
other factors affecting its brand. First, it would be important to conduct thorough market
research to gain a deep understanding of the target market and their needs and
preferences. This could include gathering data on consumer demographics, purchasing
habits, and attitudes towards the brand.
Next, it would be important to consider the competitive landscape and identify key areas
where Jollibee could differentiate itself from other fast-food chains. This could include
developing new and unique menu items, implementing innovative marketing campaigns,
improving customer service and overall brand experience, and embracing technology and
digital platforms for ordering delivery, and customer engagement. Invest in user-friendly
mobile apps and an online presence to enhance the customer experience
Another key element of a successful strategy for Jollibee would be to focus on
expanding the company's presence both domestically and internationally, they should
continue to identify markets with potential and adapt their menu and marketing to local tastes
while maintaining the core Jollibee brand. Regularly update the menu with new and
appealing offerings while preserving signature items. Consider catering to dietary
preferences, including healthier and vegetarian options. This could involve opening new
locations, developing partnerships with other businesses, or investing in technology and
digital initiatives to reach new customers.
Finally, it would be important to continuously monitor and assess the effectiveness of
the strategy to make any necessary adjustments and ensure that the company is on track to
achieve its goals. Overall, developing a successful strategy for Jollibee would require a
combination of market research, competitive analysis, brand differentiation, expansion, and
continuous monitoring and assessment.

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