2404 Words10 Pages
Jollibee Foods Corporation International Expansion Case Analysis Jollibee built its core brand on a selection of key criteria (core competencies) to ensure that they would succeed in a highly competitive fast food environment. Jollibee Foods Corp (JFC) business operations catered to Filipinos eating habits such as satisfying their palettes with spicy hamburgers. JFC store fronts were also designed to be friendly and inviting; a comfort zone where families could gather to enjoy a selection of foods with a very local taste. JFC also made every effort in meeting all of their customer’s requirements. These aspects were essential to JFC’s overall success which also guided and aided their expansion through out the country. The preparation…show more content…
He was able to immediately expand the number of outlets and deliver profits to the parent company. Tony Kitchner expanded JFC into 8 new markets and 18 new stores between 1994 and 1996. His strategy included a full compliment of marketing and human resource divisions. Kitchener’s strategy was to ‘plant flags’ as a first-mover concept and target expatriates. Kitchner tried to target expatriates (a niche market) by establishing outlets in other countries such as the Middle East which would allow the company to gradually enter into unfamiliar markets and give them time to develop their appeal to a larger base. The risk of this strategy is that it would depend too much on Filipino expatriates to patronize Jollibee’s outlets. Mr. Kitchner also failed to analyze the buying decisions of expatriates to determine how lifestyle changes in their adopted country could impact their needs and wants. Tony Kitchner was also very ambitious. His ambitions often led to conflict and his hasty decisions would ultimately impact the total business operations of JFC. Tony Kitchner believed it was important to get into markets before the competition as a first-mover. This type of expansion method is often poorly executed. As a strategy move ‘plant the flag’ ignored some important facts such as the costs of establishing new businesses in a foreign country. ‘Plant the Flag’ also tended to ignore such considerations as building a competitive business structure which could compete head-on

More about Word

Open Document