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1. On what key resources and abilities did Jollibee develop its market position in the Philippines? Jollibee’s success in its home market established as a result of its ability to better meet the requirements of the Filipino customer. Although its success was moderated by the political and recessions of 1983, Jollibee was still able to deliver a product that both less expensive and better tasting than that of McDonald’s. – As one of the “5 Fs,” versatility was a property of Jollibee. The capability to push forward the Champ hamburger, contending with the Huge Mac, highlights a source of competitive advantage.
Market research indicated that Filipinos preferred Jollibee burgers’ hot taste to McDonald’s plain beef patty. – Another source of competitive benefit was Jollibee having the ability to expand its core menu of chicken, spaghetti, and a peach-mango dessert pie throughout the financial and political crisis. McDonald’s foreign brand name appeal faded making Jollibee dominantly present in the market with 31 shops. – Executing the “5 Fs” approach and the capability to provide all of these to customers at an inexpensive rate was a well established operations management capability.
Jollibee had the ability to provide quality food and service consistently and efficiently in a fun and friendly environment. These were essential success elements that allowed Jollibee to broaden rapidly throughout the Philippines. 2. Which of these deliver continual benefit?
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
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