How Was Jollibee Able To Build Its Dominant Position In Fast Food In The Philippines

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1. How was Jollibee able to build its dominant position in fast food in the Philippines? What are the sources of competitive advantage was it able to develop against McDonalds in its home market?

Jollibee was able to build its dominant position in Philippines fast food market due to several important factors. Jollibee had a major advantage since they were already in the market and had a low barrier to entry. Since Jollibee had a low barrier to entry and knowledge and relationships with the local produce and meat sellers, they were able to provide customers with lower prices. The ability to provide lower prices made Jollibee a dominant force in the fast food market in the Philippines. Also, their recipes were catered to the taste of the Philippines market and what the customers were already accustomed to eating. The development of the “Five F’s” was crucial in establishing a purpose and a sort of mission statement, flavorful food, fun, flexibility, and families. The marketing strategy to implement the bee mascot helped create a connection between the brand and the youth. Thus strategy helped create brand recognition and further strengthened their market share. Jollibee made a good decision when they were in need of capital. They were able to avoid debt and interest by raising funds internally. Without having the liability of debt and interest, Jollibee was able to focus on growing the company and taking on McDonalds.
McDonalds took on the Pilipino market in 1981 and took aim on Jollibee and its market. McDonalds had an immense amount of resources, capital and experience in the fast food industry. Jollibee on the other hand had the advantage because of their market experience and recognition for good food among the Philippines. The ability for Jollibee to be first in the Philippines gave them the advantage to outline what great food tasted like and gain the trust of the local community by using local resources. Jollibee was able to use cultural proximity to their advantage and create a larger hamburger that tasted better than that of McDonalds. The spicy patties from Jollibee were a hit amongst the Pilipino versus the plain patties from McDonalds. The slightly more expensive Jollibee was still

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