Jollibee’s Quest for Global Growth

Jollibee is the leading fast-food chain in the Philippines. With its very remarkable success in the country and its vision to expand its market to other countries, Jollibee managed to build their establishment in the United States, Saudi Arabia, Hong Kong, Vietnam, Indonesia, Dubai and Brunei. Well, of course, their main target will be the Overseas Filipino Workers, and subsequently infiltrating the market of the foreign niche they are entering.

If going global means that you would not only cater Filipinos worldwide but also the world market in general, Jollibee’s main concern would be to make their products and services flexible accordingly to the culture and social preference in every particular place without jeopardizing its brand image. A global company tends to unify strategies that reflect the commonalities of market needs across the countries through global standardization. But it does not imply that Jollibee has to serve only their original Filipino-recipe menu in the foreign country because variation of preferences is inevitable and cannot be ignored, Jollibee’s approach would be to adapt its products to fit the global demand.

Its initial strategy of “targeting OFWs and foreign-based Filipinos” and “planting the flag” might have created the risk of targeting only a narrow segment of the world market, neglect large transaction cost and failure to leverage Jollibee’s competitive advantage on new geographic market. This strategy of Jollibee requires enough market volume of OFW and expatriates in the area which could generate publicity through word-of-mouth and eventually attract walk-in traffic of foreign race. This might be one of the reasons why some ventures abroad did not materialize as successful as its counterparts in the Philippines.

Jollibee ought to consider other strategies that will be applicable to the particular undertaking they will be entering. One alternative would be to target place, state, or country where there are few competitors, say; places not yet fully conquered by McDonald’s, Wendy’s or Burger King. With few competitors, they could easily capture the market and set the standard.

Another option is to team up with a foreign partner who can help Jollibee overcome challenges of operating in the foreign niche and provide viable access to distribution channels, suppliers and strategic store locations.

Innovative promotional strategy is also vital, specifically employing the same approach of capturing the younger segment of the market and continually improving its product lines. They should not also forget to bring the warmth of Filipino hospitality and excellent service. Show them the “At home sa Jollibee” and “Bida ang sarap” spirit.

A concrete feasibility study is essential to determine the best locations and the kind of adaptations Jollibee has to consider. With many options at hand, they could combine these accordingly to the selected area of venture.