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Please comment on what you agree or disagree with in this article, which you can read more about Jollibee Foods Corporation (A) p. 239-241 and (B): International Expansion.

Dear Dr.Jean-Marc Dautrey,

1. What is Jolibee's preferred mode of entry? Why?

Jollibee, a fast-food chain from the Philippines, has achieved a remarkable accomplishment in global expansion, with over 4,400 stores located in 21 countries. This success can be attributed to Jollibee's adaptable business strategies, which enable the company to adapt to the specific needs and wants of each local market it enters. To expand globally, Jollibee has implemented a strategic approach that combines franchising and joint ventures. This approach has proven to be highly effective, as it allows the company to leverage the knowledge and expertise of local partners while maintaining oversight over the quality of its products and services. Through this method of expansion, Jollibee can quickly and efficiently establish its brand in new markets, with a reduced financial burden and risk. Jollibee's success is not just limited to its expansion strategy, as the company has also invested in research and development, new product launches, and digitalization to stay competitive in the fast-food industry. This has enabled Jollibee to not only maintain its brand recognition and reputation for quality but also to grow its clientele and increase its revenue streams. Overall, Jollibee's exceptional growth and success can be attributed to its ability to adapt to local markets, leverage local partnerships, and invest in innovation. As Jollibee continues to expand its global presence, its chosen method of expansion will likely continue to be a key factor in its continued success.

Jollibee's global expansion strategy has relied heavily on franchising and joint ventures as its chosen method of expansion. By partnering with local franchisees who have a deep understanding of the local market, Jollibee can leverage its brand name and expertise in the fast-food industry. Franchising provides a low-risk and low-investment method of entry for Jollibee, with the franchisee assuming the financial responsibility and operational control of the business. Another method of expansion used by Jollibee is joint ventures, which involve collaborating with local businesses or investors to establish a new company in the target market. This allows Jollibee to share risks and costs with the local partner, while benefiting from their local knowledge and cultural expertise. Joint ventures have been particularly effective in markets where Jollibee's brand recognition is weak, and where regulations require the involvement of a local partner in business operations. In summary, Jollibee's successful international expansion is attributed to the strategic utilization of franchising and joint ventures to enter new markets efficiently while preserving control over product quality and brand image. By partnering with local businesses and franchisees, Jollibee leverages its brand name and fast-food industry expertise to emerge as one of the leading fast-food chains globally.

2. One of Jolibee's International Division veteran stated the following: "In Guam, we learned how to do business in the United States" (p. 239). What exactly did Jolibee learn from its success in Guam?

Jollibee, a popular Filipino fast-food chain, has been expanding rapidly in international markets in recent years. One of the successful markets for Jollibee is Guam, a U.S. territory in the Western Pacific Ocean. Jollibee's veteran of the International Division said, "In Guam, we learned how to do business in the United States" (p. 239 and extra sources). This discussion will explore the lessons that Jollibee learned from its success in Guam. In this case, Guam is a small island with a population of around 170,000 people, with a mix of Pacific Islander, Asian, and Caucasian cultures. Jollibee entered Guam in 1989 and quickly became popular among the island's diverse population. Jollibee's success in Guam has taught the company some valuable lessons that it has applied to its expansion efforts in the United States. One of the significant lessons Jollibee learned from its success in Guam is the importance of adapting to local tastes and preferences. Jollibee's menu in Guam includes a mix of Filipino, American, and Asian dishes that cater to the local population's diverse tastes. Jollibee offers a Chamorro breakfast menu that includes local favorites such as spam and rice. This menu diversity has helped Jollibee appeal to Guam's diverse community and contributed to its success. Another lesson Jollibee learned from its success in Guam is the importance of building relationships with the local community. Jollibee has become a part of the island's social fabric, not just a fast-food chain. Jollibee has sponsored local events, supported charities, and provided employment opportunities for the local community. By building strong relationships with the local community, Jollibee has been able to establish a loyal customer base and gain the trust of the local population. Hence, Jollibee's success in Guam has taught the company valuable lessons about adapting to local tastes and preferences and building relationships with the local community. These lessons have helped Jollibee expand successfully in the United States and other international markets. As Jollibee continues to expand its global presence, these lessons will undoubtedly play a crucial role in the company's future success.

3. Why has Jolibee not entered the Thai market yet?

Jollibee is a well-known fast-food chain from the Philippines that has been opening restaurants in different countries around the world. However, while they have been successful in places like Vietnam and Indonesia, they haven't started any restaurants in Thailand yet. In this discussion, we will explore the reasons behind this decision and what it might mean for Jollibee's plans to expand globally. There are several potential reasons why Jollibee has not entered the Thai market yet. The main factor that has been referred to is that the fast-food industry in Thailand is highly competitive, with well-established players such as McDonald's and KFC dominating the market. According to a report by Euromonitor International, McDonald's alone had a 23% share of the market in 2020, followed by KFC with a 17% share. This makes it challenging for Jollibee to break into the market and establish its brand. Especially, Thai consumers are already familiar with the established brands and may be hesitant to try a new brand. Meanwhile, cultural differences and preferences may also play a role in Jollibee's decision to hold off on entering the Thai market. Thai consumers have different tastes and preferences when it comes to fast food, and Jollibee may need to adjust its menu and marketing strategies to cater to the local market. For example, Thai consumers prefer spicier and more savory flavors in their fast food, which may differ from Jollibee's current menu offerings.

In contrast, Jollibee's menu in the Philippines is known for its sweet and savory flavors, which may not appeal to Thai consumers. To view the business conditions more clearly, there may be regulatory requirements and obstacles that pose a challenge to Jollibee's entry into the Thai market. For example, there may be restrictions on foreign ownership or regulations that require local partnerships, which can add complexity and costs to Jollibee's entry strategy. Hence, Jollibee may have chosen to focus on expanding into other markets first, such as Vietnam and Indonesia, before entering the highly competitive Thai market. In fact, Jollibee has been successful in expanding its brand in Vietnam with over 100 stores as of 2021 and in Indonesia with over 50 stores. This suggests that Jollibee may have prioritized markets where it sees more potential for growth and success. In summary, the decision for Jollibee to not enter the Thai market yet may be due to a combination of factors such as the highly competitive market, cultural differences and preferences, regulatory requirements and obstacles, and the company's focus on expanding into other markets first.

4. Should Jolibee enter the Thai market in the near future? Explain why or why not.

There are compelling reasons for Jollibee to explore entering the Thai market in the near future. Firstly, the fast-food industry in Thailand is projected to grow in the coming years, which presents a promising opportunity for Jollibee to gain a foothold in the market. Secondly, Jollibee has demonstrated success in expanding its brand in other Southeast Asian countries, like Vietnam and Indonesia, suggesting that the company may be able to replicate this success in the Thai market. Lastly, Jollibee has already established a presence in other global markets, such as the United States and the Middle East, which highlights the company's capacity to thrive in diverse markets with different cultural contexts. One potential strategy for Jollibee to successfully enter the Thai market is to tailor its menu and marketing strategies to local preferences. This could involve adjusting menu offerings to cater to local tastes or adapting marketing campaigns to better resonate with Thai culture. Additionally, Jollibee may need to explore partnerships with local businesses to navigate regulatory requirements and overcome barriers to entry.

Jollibee's success in other Southeast Asian markets could serve as an advantage in its potential entry into the Thai market. The company has already expanded its brand in Vietnam and Indonesia, where it has achieved significant growth. In this case, Jollibee had over 100 stores in Vietnam and over 50 stores in Indonesia. This demonstrates that Jollibee has a good understanding of the Southeast Asian market and has the ability to adapt to local preferences and cultural differences. The success in other Southeast Asian markets could also provide Jollibee with important insights into how to approach the Thai market. For example, Jollibee may have learned which menu items are popular with consumers in Vietnam and Indonesia and how to tailor its marketing strategies to appeal to local preferences. These insights could be useful in developing a successful entry strategy for the Thai market. Furthermore, Jollibee's success in Southeast Asia could also help the company establish itself as a regional brand, which could be an important factor in its global expansion strategy. By establishing a strong presence in Southeast Asia, Jollibee can build its reputation and leverage its success to enter other markets around the world. To view it in a positive way, Jollibee's success in other Southeast Asian markets suggests that the company has the potential to replicate its success in Thailand. The company's experience in these markets could provide valuable insights and help Jollibee tailor its approach to the Thai market. Likewise, Jollibee has a strong presence in global markets like the US and the Middle East and has experience adapting to diverse cultural contexts, which could help them succeed in Thailand. To succeed in Thailand, Jollibee needs to adapt its menu and marketing strategies to cater to Thai consumer preferences for spicy and flavorful foods, as well as healthy options. Partnerships with local businesses, like restaurants or franchisees, could help Jollibee navigate regulations and establish a foothold in the market. This strategy has worked for other foreign fast-food chains like McDonald's in Thailand. Overall, Jollibee should enter the Thai market soon, given the growing demand for fast food in Thailand and their potential for success with the right strategies in place.

Reference Lists

Cheng, C. C., & Wu, C. Y. (2015). Fast-food restaurant internationalization:

A new framework and an exploratory study. Journal of Hospitality and Tourism Management, 25,

1-10. https://doi.org/10.1016/j.jhtm.2015.02.001

Euromonitor International. (2020). Fast Food in Thailand.

Retrieved from https://www.euromonitor.com/fast-food-in-thailand/report

Gonzalez, A. (2019). Jollibee Foods Corporation: International Expansion into Guam.

Journal of the International Academy for Case Studies, 25(2), 1-7.

Jollibee Foods Corporation. (2021). Jollibee's 2021 First Quarter Business Report.

Retrieved from https://jfc.com.ph/files/investors_relations/JFC_

2021_First_Quarter_Business_Report.pdf

Jollibee Foods Corporation. (2021). Jollibee Foods Corporation Annual Report 2020.

Retrieved from https://jollibee.com.ph/sites/default/files/2021-06/2020-JFC-Annual-Report-web-1.pdf

Poh, L. K., & Ng, M. K. (2018). The internationalization of Jollibee Foods Corporation.

Journal of Asian Business Strategy, 8(4), 64-71. doi: 10.18488/journal.1008/2018.8.4/1008.4.64.71

Wahyuni, D., & Susanto, A. (2018). The internationalization of Jollibee Foods Corporation.

Journal of Management and Marketing Review, 3(1), 1-9. https://doi.org/10.7176/JMMR/68-01

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