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Jollibee

Satisfactory Essays

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 …show more content…

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

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