Case Study - Jollibee

CASE DISCUSSION QUESTIONS:

Question 1: How was Jollibee able to build its dominant position in fast food in the Philippines? What are the key success factors in the fast food industry that Jollibee was able to develop against McDonalds in its home market?

Jollibee able to build its dominant position in fast food in the Philippines based on few factors such as products, price, competition and good operations management.

As such, on the products, the products offered by Jollibee appeals to the Filipinos taste for spicy burgers and concentrating its resources on satisfying the Filipino taste. Although it started as ice-cream parlour, the hamburger made to a home-style Philippine recipe became the customer’s favorites.

On the price, it provides clean and quality food with affordable price that ensure all type of income earner able to afford it.

On the competition, McDonalds is the only fast food operator that has direct competition to Jollibee. Jollibee able to overcome the tough competition through the introduction of new product called “Champs” and political climate of Philippines helped Jollibee to overcome further on the competition of McDonalds.

Operations management lead by President Tony Tan Caktiong proved to be very customer focused and use 5 “F” as their philosophy whereby Flavorful food, Fun atomosphere, Flexibility, Focus on families and Friendliness are the “F”s.

The key success factors that Jollibee able to develop against McDonalds in its home market are:

a. Niche Market - highly localized menu that not provided by McDonalds. So this become the targeted type of fast food by locals.

b. Operations – Jollibee has superior number of outlet with 31 stores in 1986 and already become the dominant presence in the market compared to McDonalds.

c. Customer Services – implementation of Five “F”s that suits well the culture of Filipinos and the concept set, Philippines Food for Filipino that becomes the national pride.

d....