Jollibee Swot

OVERCOMING GLOBAL GIANTS IN THE LOCAL MARKET:

JOLLIBEE’S COMPETITIVE STRATEGIES AGAINST MCDONALD’S

Keiichi Yamada

Faculty of Business, Marketing, and Distribution, Nakamura Gakuen University

5-7-1, Befu, Jonan-ku, Fukuoka City, 814-0198, Japan.

Yamada-k@nakamura-u.ac.jp

Abstract

 In this study, the author tries to figure out the secret of success by setting up hypothesis through history, and strategy analysis including analysis of business model in the case of Jollibee Foods Corporation (JFC), and tries to bring out effective strategies for local companies to compete against global giants in the local market and implies critical success factors (CSF).

Keyword: critical success factors, local market structure, glocalization, technical enmvironments, institutional environments

INTRODUCTION

A fast food restaurant, or Quick Service Restaurant (QSR) has the following 3 characteristics (Lorenzana 2008). It is characterized by its fast food cuisine and minimal table service. It offers limited menu, cooked in bulk in advance, kept hot, finished, packaged to order, and available to take-out, drive-thru, and dine-in. It is usually a part of a chain or franchise operation, which provisions standardized ingredients and/or partially prepared foods and supplies to each restaurant through controlled supply channels.

McDonald’s is one of the most famous QSR in the world. McDonald’s was founded by Mac and Dick McDonald – the McDonald’s brothers in 1937 (Kroc 1987). It was once closed in 1948 and reopened a short time later with a radically different kind of operation – a restaurant with the minimum service and menu, the prototype of fast-food units that later would spread across the world (Kroc 1987). ‘Hamburgers, fries, and beverages were prepared on an assembly line basis, and, to the amazement of everyone (Kroc 1987: 70-71)’. It has been developed under management and leadership of Ray Kroc and expanded its market and became one of the world giants of QSR...