MBA Jollibee's Global Expansion Strategy
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Transcript of MBA Jollibee's Global Expansion Strategy
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JOLLIBEE FOODS CORPORATION
Global Strategy
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Overview: Emerging Market
High Growt
h
Financial Infrastruct
ure
High Risk
Market Inefficienc
ies
Uncertain Regulatio
n
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Philippines
Export led economy Member of ASEAN High economic growth Large consumer market Privatization initiatives by government
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Vision
We are the best tasting Quick Service Restaurant(QSR)
The most endearing brand…
that has ever been…
We will lead in product taste at all times…
We will provide excellent customer service in every encounter…
Happiness in every moment…
By year 2020, with over 4,000 stores worldwide, Jollibee is truly a GLOBAL BRAND
(and the Philippines will be admired worldwide)
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Jollibee Foods Corporation
Began in 1975 as an ice-cream parlour Headquartered in Pasig City, Philippines Revenue in 2011: PHP 63 Billion (USD 1.47
Billion) Employs 40,000 people worldwide Philippines, Thailand, Singapore,
Indonesia, Hong Kong, United States and China
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Growth
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Growth
2011- Purchased Chowking stores-Purchased 54% share of BK Titans, Inc. (Philippines), - Obtained 50% of San Pin Wang in China* 2001 stores in Philippines and 468 stores in foreign countries
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International Operations
Philippines, USA, Hong Kong, Vietnam, Saudi Arabia, UAE, Brunei
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Financial Growth
200620072008200920102011PHP 0.00
PHP 10.00
PHP 20.00
PHP 30.00
PHP 40.00
PHP 50.00
PHP 60.00
PHP 70.00
Gross revenue
Year
PH
P (
Bil
lio
n)*
*1 US$ = 42.7 PHP(Philippine Peso)
• Revenue growth of 9%-18% between 2006 and 2011• Income growth of -3%-20% between 2006 and 2011
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Global Expansion Strategy
Target
Expats
Plant the Flag
Initial International Strategy
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Global Expansion Strategy
Large Filipino popula
tion
High growth
fast food
market
New International Strategy
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Analysis of Strategy
Limited markets to target Retain non-Filipino customer base through
improving quality, consistency and standardization
Generic menu Emphasis on research to provide localized
food menu Avoid excessive localization
Stick to its segment of Quick Service Restaurants (QSR)
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Globalization Challenges
Filipino companies have little exposure to competition with foreigners
Expansion through M&A: Talent management and best practices difficult to streamline
Higher labour costs, lower margins Competition from well established global
firms with deep pockets Limited Markets with overseas Filipino
communities
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2012 and beyond
Expansion into rapidly growing fast-food market: China, Indonesia, Vietnam, Middle-East
Improve operational efficiency and adjust to local tastes
Revenue split: International/Domestic
Current 20:80
Target 50:50
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2012 and beyondCountry
Factor Endowment
Related Industries
Demand Conditions
Strategy, Structure,
Rivalry
Saudi Arabia
High Foreign Labor Dependency, Duty Free
Anti-trust legislation, Low entry barrier
Needs for social spaces
Many global competitors are entering the market
Malaysia
Natural resources and good location to be attractive to foreign investors
Most companies are small scale
Still strong demand for local-oriented products
Most domestic firms operate within the country
Singapore
High quality inputs from outside i.e. HR, IT, Capital
Openness to foreign companies
Sophisticated consumers, diversity
Open and vigorous competition
Australia
Skilled work force in agriculture, Good Infrastructure
Agricultural business
Westernized taste
Fast food competition is high
India
High population, high growth rate
Global food chains and local food chains co-exist
Booming middle class, Tastes are still local
Many local food chains
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Discussion
Let’s grab a
Chicken Joy!!