Motivations, Means, and mentalities of International expansion; applying in Jollibee case

1. Case study: Jollibee Foods Corporation
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2. Contents
Email: huongvuvu.hut@gmail.com
Motivations
MentalitiesMeans
Case study: Jollibee Foods Corporation

3. Jollibee Foods Corporation
Motivations
MentalitiesMeans
International expansion
- Founded in 1978 (ice cream parol)
- Started the hamburger business because of 1977 oil crisis
- Head quarter: Pasig, Philippines
- Five “Fs” philosophy: Friendliness, Flavorful food, Fun
atmosphere, Flexibility in catering to customers needs, and
Focus on family
- Revenue: 100.8 billion PHP (2015)
- Net income: 3.25 billion PHP (2011)
- Number of employees: 14,635 (FY 2011)
- A multinational enterprise
- Subsidiaries: Chowking, Mang Inasal, Red Ribbon, Greenwich
Pizza
https://en.wikipedia.org/wiki/Jollibee

4. Jollibee Foods Corporation
Motivations
MentalitiesMeans
International expansion
Market and Resource Seeking
l Secure raw materials
l Exploit factor cost differences
l Protect exports
l Provide growth
Competitive Positioning
l Match competitors
l Capture global scale
l Preempt markets
l Play “Global Chess”
Global Scanning/ Learning
l Global intelligence scan
l Access scarce knowledge
l Recruit skills, expertise
70s/80s
Pre-1970
90s/00s
Mass-based positioning
(reposition):
Indonesia market isn’t willing
to pay for fast-food as in
Philippine
Change business model/logo
-Ways to expand is to use franchise
Model
Competitive positioning
Market seeking
Increasing brand awareness

5. Jollibee Foods Corporation
Motivations
MentalitiesMeans
International expansion
 Creating and sustaining global competitive advantage
Partner Countries
Supplier Countries Global
Business
Customer
Countries
R&D
Manufacturing
Logistics
Procurement
Coordinate/
Orchestrate
Marketin
g
Sales
Service
Customers
Internal
Partners
Suppliers
Home Country

6. Means
 Export
 Indirect
 Direct (e.g. agent)
 Controlled (e.g. sales branch)
 Contractual
 License
 Franchise
 Management/Service Contracts
 Marketing & finance
 Cooperation Agreements
 Investment
 Greenfield
 Acquisition
 Joint Venture
 Deli France
 Capital Participation
Motivations
MentalitiesMeans
International expansion

7. Failed and Successful global locations
Successful
The Philippines:
Enjoyed domestic
market
dominance
Taiwan: partly
successful
Brunei: local
investor was a
silent
Failed
Singapore: bad
relationship with
partners
Taiwan: high
rental costs

8. Motivation
• Competitive positioning
• Market seeking
• Increasing brand awereness

9. Mean
• Planting the flag: being the first mover
• Establishing affiliates
• Economics of scale

10. Mentality: core values (5 five Fs)
• Friendliness
• Flavorful food: tailored to customer needs and
preferences
• Fun atmosphere
• Flexibility in catering to customers needs
• Focus on family

11. 3 choices to make
• Australia
• Hong kong
– Unable to hire local people
– Language barrier
– Quality control questions
– Reidifity-refused
• California
– Target Filipino expatriates
– Largest fast food consumer market
– High competition