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Jollibee's Global Expansion Strategy

Jollibee Foods Corporation is a Philippine based quick service restaurant company that began in 1975 and has since expanded to over 1,000 stores internationally through acquisitions and organic growth, with a vision of becoming a truly global brand by 2020. The company has pursued a strategy of targeting areas with large Filipino populations initially and is now focusing on high growth markets in countries like China, Indonesia, and Vietnam. Jollibee faces challenges in expanding globally such as competing with well-established international brands and adapting operations and menus to local tastes and regulations in new markets.

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197 views16 pages

Jollibee's Global Expansion Strategy

Jollibee Foods Corporation is a Philippine based quick service restaurant company that began in 1975 and has since expanded to over 1,000 stores internationally through acquisitions and organic growth, with a vision of becoming a truly global brand by 2020. The company has pursued a strategy of targeting areas with large Filipino populations initially and is now focusing on high growth markets in countries like China, Indonesia, and Vietnam. Jollibee faces challenges in expanding globally such as competing with well-established international brands and adapting operations and menus to local tastes and regulations in new markets.

Uploaded by

tariqdurrani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

JOLLIBEE FOODS CORPORATION

Global Strategy
Overview: Emerging Market

Financial
Infrastructure

Uncertain High High Risk


Regulation
Growth

Market
Inefficiencies
Philippines
 Export led economy
 Member of ASEAN
 High economic growth
 Large consumer market
 Privatization initiatives by government
Vision

We are the best tasting Quick Service Restaurant(QSR)


The most endearing brand…
that has ever been…
We will lead in product taste at all times…
We will provide excellent customer service in every
encounter…
Happiness in every moment…
By year 2020, with over 4,000 stores worldwide, Jollibee is
truly a GLOBAL BRAND
(and the Philippines will be admired worldwide)
Jollibee Foods Corporation
 Began in 1975 as an ice-cream parlour
 Headquartered in Pasig City, Philippines
 Revenue in 2011: PHP 63 Billion (USD 1.47
Billion)
 Employs 40,000 people worldwide
 Philippines, Thailand, Singapore, Indonesia,
Hong Kong, United States and China
Growth
Growth

2011
- Purchased Chowking stores
-Purchased 54% share of BK
Titans, Inc. (Philippines),
- Obtained 50% of San Pin Wang
in China
* 2001 stores in Philippines and
468 stores in foreign countries
International Operations

Philippines, USA, Hong Kong, Vietnam, Saudi Arabia, UAE,


Financial Growth

PHP 70.00
• Revenue growth of 9%-18%
PHP 60.00 Gross between 2006 and 2011
revenue
• Income growth of -3%-20%
PHP 50.00
PHP (Billion)*

between 2006 and 2011


PHP 40.00

PHP 30.00

PHP 20.00

PHP 10.00

PHP 0.00
2006 2007 2008 2009 2010 2011
Year
*1 US$ = 42.7 PHP(Philippine
Peso)
Global Expansion Strategy

Target
Expats

Initial
International
Strategy
Plant
the
Flag
Global Expansion Strategy

Large
Filipino
population

New
International
Strategy
High
growth
fast food
market
Analysis of Strategy
 Limited markets to target
 Retainnon-Filipino customer base through
improving quality, consistency and
standardization
 Generic menu
 Emphasis on research to provide localized food
menu
 Avoid excessive localization

 Stick to its segment of Quick Service


Restaurants (QSR)
Globalization Challenges
 Filipino companies have little exposure to
competition with foreigners
 Expansion through M&A: Talent management
and best practices difficult to streamline
 Higher labour costs, lower margins
 Competition from well established global firms
with deep pockets
 Limited Markets with overseas Filipino
communities
2012 and beyond
 Expansion into rapidly growing fast-food
market: China, Indonesia, Vietnam, Middle-
East
 Improve operational efficiency and adjust to
local tastes
Revenue split: International/Domestic
Current 20:80
Target 50:50
2012 and beyond
Strategy,
Factor Related Demand
Country Structure,
Endowment Industries Conditions
Rivalry
High Foreign Many global
Anti-trust
Saudi Labor Needs for social competitors are
legislation, Low
Arabia Dependency, spaces entering the
entry barrier
Duty Free market
Natural resources
Still strong Most domestic
and good location Most companies
Malaysia demand for local- firms operate
to be attractive to are small scale
oriented products within the country
foreign investors
High quality
Openness to Sophisticated Open and
Singapor inputs from
foreign consumers, vigorous
e outside i.e. HR,
companies diversity competition
IT, Capital
Skilled work force
Fast food
in agriculture, Agricultural
Australia Westernized taste competition is
Good business
Discussion

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