How Does The Jollibee Compete To Mc Donald In fast Food Industry In Phillipine A. Background McDonald’s and Jollibee are two fast food chains that compete to selling hamburgers in the Philippines. McDonald’s is an American owned company while Jollibee was founded in Philippine. Jollibee has more than 500 stores in the Philippines and 25 in other countries, selling more than half a million burgers every day and McDonald’s has about 250 outlets in the Philippines. Jollibee has success to be the largest food company in Philippine, with sales of 21. 7 billion pesos, or $397 million, in 2004, up 13. percent from a year earlier. Jollibee respecst to the local tastes, unlike McDonald’s which was constrained by its obligation to remain faithful to its core products, Jollibee was flexible. This case tell how the competition between McDonald’s and Jollibee use their strategy to dominated both local and international market. Jollibee ,which was a Filipino chain of restaurants, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company. The company faced serious challenges with their international exposure. B.
Case Issues McDonald’s becomes famous in Indonesia because operational efficiency, excellence service, and also creative marketing strategy. McDonald’s provide 24 hours services, delivery services, and give some toys for kids when buy their product. This situation contrast in Phillipines. In 1975, Tony Tan Caktiong and his brothers opened an ice cream store which grew to burgers and other fast food. Although imitated United States kinds of menu, he developed their own brand named jollibee. Jollibee has many achievement. In 1981, Jollibee entered the list of the top 1,000 corporations.
In 1984, it was the top 500 list and dominated local fast food market. The strength of Jollibee is know what their customers want. They offer rice, spaghetti and sauce which is suitable with Fillipino’s taste when the other fast food not offer it. Jollibee has menu variation such hotdog, French fries and more asian menus. Jollibee entered the market 80s when Philipines was in the big problems. They heavily invested in the number of their stores at that time so, when McDonald’s entered, it was too late, McDonald’s lost so many locations and Jollibee could enjoyed zero competition in certain areas.
Jollibee made by Fillipino, so the other Fillipino who eats it will feel proud and give emotional satisfaction benefit. C. Business Environment Analysis (External and Internal) STRENGTHS * Jollibee know what their customers want. While other fastfood restaurants never offer rice and spaghetti in Phillipines, Jollibee offers it as their entrees. * Jolibee dominate the local market in Phillipines WEAKNESSES * Only dominated the phillpines market, difficult to expansion to foreign. * The marketing skills are not effective * Poor co-ordination between the national and international units. Has variety of product but sells in different market OPPORTUNITIES THREATS * Phillipines is one of agricultural country, get raw materials is easier * Increase commissaries will reduce the transportation cost * Competition with local and international companies * Develop their business to abroad D. Marketing and Human Resource Manajemen Marketing Jollibee compete McDonald’s with these thing : * Jollibee was the first to enter the market * His price is cheaper than his competitor * Know the tastes of consumer and be flexible
Jolibee should compete with KFC and McDonald’s which have high brand value to entered international market. There are so many rivals to entered the international market, Jollibee should have innovation marketing strategy to sells his product. The success key are good food, good service and reasonable price. Jollibee build advantage competitive to get more consumer. The company has good internal financial resources but a certain code should be maintained in the relationship with the franchisee. Human Resources Human resources be the important factor to be success in organize a business.
Excellence human resources will give big impact to the business. Both serve to fulfil the goals, needs of employees, and to ensure that they have the necessary resources to successfully complete their duties. Jollibee has organize his human resources with : * Jollibee provides top-notch services in all its outlets. * Making fun and friendly environment. * Do stringent recruitment and selection procedures to staff to man its outlets * Training programs equip its staff with the necessary skills needed to better perform their tasks. * Give more compensation to his staff
With these strategies, Jollibee is able to create a high standards and excellence services of working environment . E. Conclusion In conclusion, Jollibee has success to compete with McDonald’s in Philliphines , but in International market McDonald’s still be the winner. The business give customers more by being sensitive and responsive to their changing tastes and wants by adding a local flavor to his product range. Overall, these changes certainly kept Jollibee ahead of the game, as 10 years in the future, their success would be so great as to garner the Entrepreneur of the Year Award by Ernst & Young for founder Tony Tan Caktiong.
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