Jollibee Foods Corporation (A): International Expansion Harvard Case Solution & Analysis

INTRODUCTION:

Jollibee foods international was developed in 1975 as an ice cream parlor and soon it expanded as a local restaurant located in Philippine.  Due to company’s high food quality, food taste and environment, the restaurant gained much popularity. With increasing food demand, company was able to compete with McDonalds and other international food chains. This gave company the confidence to move abroad and be an international seller. Trying many different strategies in different countries, company was failed and unable to expand itself. After suffering from financial crises, the company was confused to take any further step.

PROBLEM STATEMENT:

The main problem that was being faced by the company was its deteriorating strategies of expansion. Company was trying much harder to achieve foreign achievement and to make itself successful. However, the company was unable to find a trustworthy partner andthe strategies that would make them successful.
Jollibee Foods Corporation (A) International Expansion Harvard Case Solution & Analysis

ANALYSIS:

Playground Matrix:

The playground matrix has two dimensions, market attractiveness and Ability to win. The market attractiveness level depends on growth ambition and the profit gaining. On the other hand, ability to win describes the efforts of entire firm to be successful. The playground consists of the following components:

SWEETSPOT: sweet spot refers to the attractive activities and competitive advantage of the business. In Jollibee, the sweet spot was the taste of food, infra-structure and quality of food and ambiance of restaurant. However, this sweet spot was only limited to Philippine.

CAPABILITY GAPS: the capability gaps refer to the lack of resources, which includes financial, operational and managerial, due to which company is giving up its opportunity cost, however, the lack of managerial resources in Jollibee, company is unable to focus on its original restaurant and is focusing only on its international expanding.

FOOL’S GOLD: fool’s gold refer to the activity which helps to enhance your business. In this case, Jollibee has built its own reputation due to its competitive advantages in Philippine.  However, to expand the business in international market, Jollibee needs to merge or acquire itself with any local and popular food chain of the targeted country.

GRAVEYARD: graveyard refers the activity when a company don’t want to involve itself in an activity but either for company’s synergistic interest or to improve the company’s competitive position. In this company, the graveyard activity is to hire the external and local employees to serve in another country. As this provides synergy to the company and helps to grow its business internationally.

BALLAST: ballasts are the activities that do not provide attractiveness in terms of profits and growth, but are highly competitive activities. In Jollibee, the new countries where the company is planting its flag of innovation and food restaurants, company is not earning much revenue and growth but are giving high competition to local and newly entered international restaurants.

REVENUE TRAP: this term refer to the opportunity cost and activities of the company. When the company is failing to give attention to other activities when planning its expanding strategies and activities. In this company, the revenue trap is its main restaurant located in Philippine. Company is too busy to focus on expanding itself as the company is not focusing to make its original and main restaurant better and provide more facilities to them...................

 

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