1. On what key resources and capabilities did Jollibee build its market position in the Philippines? Jollibee’s success in its home market developed as a result of its ability to better meet the needs of the Filipino customer. Although its success was mediated by the political and economic crises of 1983, Jollibee was still able to deliver a product that both cheaper and better tasting than that of McDonald’s. •As one of the “5 Fs,” flexibility was an asset of Jollibee. The ability to push forward the Champ burger, competing with the Big Mac, highlights a source of competitive advantage. Market research indicated that Filipinos preferred Jollibee burgers’ spicy taste to McDonald’s plain beef patty. •Another source of competitive advantage was Jollibee being able to broaden its core menu of chicken, spaghetti, and a peach-mango dessert pie during the economic and political crisis. McDonald’s foreign brand appeal faded making Jollibee dominantly present in the market with 31 stores. •Implementing the “5 Fs” philosophy and the ability to offer all of these to customers at an affordable price was a well developed operations management capability. Jollibee was able to deliver quality food and service consistently and efficiently in a fun and friendly environment. These were key success factors that allowed Jollibee to expand quickly throughout the Philippines. 2. Which of these deliver sustained advantage?
The flexibility to cater to customer needs is a sustained advantage. Not only did Jollibee create a spicy burger that appealed to native Filipinos, they also were able to customize meals for local tastes in foreign markets. Another sustained advantage was the international strategy to target expatriates and planting the flag. The targeting of expatriates allowed the company to ease its transition into an unfamiliar market. The popularity amongst expats could generate publicity and attract walk-in traffic from non-Filipino
ListValuable?Rare?Difficult to Imitate?Without Substitutes?Implications for Competitiveness? Developing spicy burger preferred by FilipinosYesYesNoNoTemporary competitive advantage Opening stores where
competitors had little or no presenceYesYesNoNoTemporary competitive advantage
Flexibility to adapt to local customer needsYesYesYesYesSustainable competitive advantage International strategy targeting expatriates and planting the flagYesYesYesYesSustainable competitive advantage
Expanding overseas into new marketsYesNoNoNoCompetitive parity