Jollibee Case
1. How can companies create value in the fast food industry ?
The company has to understand what people that consume that product truly value, what represents value for them in terms of perception. In our case we have seen that these dimension is really dependent of the location and habits people might have in the different countries. So I f we consider this, the value perceived by consumers might change in function of the location and customers
How was Jollibee able to develop a dominant position in the Philippines?
First of all, by its 5 F’s Platform : Fun, Flexibility, Family atmosphere and Friendliness. This philosophy corresponds to Filipino customers, but its dominant position is also reinforces by its spicy
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Costs of transaction associated with establishing markets in new countries also hindered its success.
4. What are the main elements of the three options on the table ? Which one would you choose and why ?
Noli Tingzon was faced with three options for immediate growth that would shape the company’s future international strategy. The options were Papua New Guinea: Raising the Standard, Hong Kong: Expanding the Base, and California: Supporting the Settlers. Tingzon received conflicting advice from different people within the organization on the best approach to proceed with Jollibee’s international strategy from continuing the aggressive “Plant the flag” strategy to a more risk adverse “Expanding share in a few countries strategy.”
In Papua New Guinea, there was virtually no fast food or decent places to eat. The benefits of opening the stores in New Guinea are first-mover advantage, franchisee would put up the capital, Jollibee would not risk their equity, no competition, and putting fast food at service stations would create a constant flow of customers. The risks of opening the stores in New Guinea are the taste of the product may not appeal to consumers, another fast food chain may enter market before brand preference and loyalty can be established, and cultural differences may be difficult to overcome. My recommendation would be to enter into a franchise
Chipotle ventured into a new territory when it was created, as it had an innovative vision for fast-casual restaurants. By using fresh and quality ingredients, Chipotle raised the bar in their segment. The service line where customers could see their order being prepared enhanced the experience of Chipotle. Consumers who were used to eating at fast-casual restaurants where the food was frozen and made out of sight were able to savor the uniqueness of Chipotle. These differences helped Chipotle become successful. However, as competitors copy the traits that make Chipotle unique, Chipotle must adapt and overcome in order to remain a profitable company.
1. Franchisees gain numerous advantage when they purchase a franchise. First, while a franchisee may be opening a new store, it is part of an already established business and system. This means a franchisee has access to turnkey operations, allowing an increased speed to establishing and growing the business. Franchisees also get support for management and training activities, as well as financial assistance. Going hand in hand with this, a franchise already has an established brand name, quality of goods and service which have been standardized across the franchisor’s larger company, and national advertising programs from franchisors. Franchises also have large-volume, centralized buying power. A franchise has proven products, and
Now look at your quotation sentence. Think of two points of commentary for your choices and write them below:
1. Identify the ethical, strategic, operational, and financial issues in this scenario and list them in priority order from most to least critical.
The franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.
This question would require a little more research , so if it was an on the spot question, I would picked 4b, for two reasons, because this is the subject I know little about and the question has more detail to write a Thesis Statement.
For this Business Strategy Report, I have selected a restaurant chain named Nando’s. It was established in 1987 by two friends, Fernando Duarte and Robert Brozin (Nando’s.com, 2017). Although being a South African brand it has Portuguese influence and the restaurant chain depicts these designs. Nando’s specialty is flame-grilled chicken spiced with their unique selection of marinade sauces and spices ranging from mild to extra hot and for those individuals not into the hot stuff, there’s a lemon and herb option. It also has other selected food options to choose from in their attractive menu. Its niche market is working middle class male and female customers who enjoy spicy food and casual dining. It also caters for kids and families.
In order to achieve these strategies company undertakes a 5 P’s integrated approach to people, products, place, price and promotion. Company relies on its ability to continue to innovate and reinvesting in the restaurants to develop them according to system plans for world-wide growth, being consistent in providing excellent customer service and clean and friendly environment which enriches customers experience and create an overall difference that balances profitability with value.
The restaurant intends to sell fresh Asian foods, beer, fruit drinks, wines, and others. The competitive advantage of the products provided by Asian Spicy Food relies on the combination of dishes in the menu and on their originality. The restaurant's cooks will be selected based on their experience and creativity. This is because the owner of the restaurant intends to develop a business in this industry based on original products, different from those of competitors, but while maintaining traditional principles of the Asian cuisine. Asian Spicy Food will be
Customers is an important justification of a company’s success. Considering the interest of customers and portraying a good image to its customers, it had come out with different variety of meals. For example, the KFC offers kid’s meal which gives children free
Interpretation of Consumer and market data provides vital information concerning the likelihood and weak point of the company product. Therefore, while reviewing the data Dana should focus on the key factors
The presence of giant pizza companies from its origin, Italy, and from its Western counterpart, the US, in almost every corner of the metro is enough to reveal the Filipinos’ love for pizza. Next to fast-food chains selling burgers, the most patronized parlors are those engaged in pizzas and it makes a potential high-income business. Pizza industry in the country is dominated by Pizza Hut, Shakey’s and Greenwich. Having a strong brand equity in the pizza industry allows a company to gain a significant advantage in the market. Customers in the pizza industry place a high value on the product quality and price of a company. Maintaining a good reputation is very important in this industry for companies because customers will build a relationship with the company and will keep on coming back or ordering from that company if they feel like they are getting a good deal.
Franchisors are increasingly having to be more and more selective in the adoption of franchisees with factors such as economic climate and the potential difficulty with growth playing key factors in the decision making process. It is not simply an ability to grow which creates a successful Franchise and nor is it the desire of any franchisor to adopt every potential franchisee. Franchisors are becoming more and more scrutinising as the global economy declines. There is a general understanding within any franchised
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?
Consumer behaviour is complex and a company has to fit their product more closely and satisfy their customer needs more fully than the