Transnational Management of Jollibee Food Corporation
Introduction
Jollibee is a fast food chain that is based in Manila, Philippines. Inspired by Tony’s chef dad back in 1977, the home style hamburger quickly became an instant hit among the Filipino’s market. Today, Jollibee is a family of a total of 750 stores across worldwide in countries like Vietnam, Qatar, Saudi Arabia and more. (Jollibee.com.ph,2013)
Now, based on the article, Jollibee is considering to expanding into three different countries and they are Papua New Guinea, Hong Kong, and California. However, these three opportunities come with complications and challenges that Jollibee has yet to attain on the strategies of entering these markets.
Papua New Guinea
In Papua New Guinea, there is five million worth of market share but only undertaken by a few competitors like Stargate Food Bar and Tropical Lunch Haus (Lonelyplanet.com, 2013). Jollibee’s only concern was to raise their standards of food quality to take over the Australian chain market which adds into their competitive advantage to demote the future competitors from coming in. Moreover, the would-be franchisee had already agreed to help Tingzon negotiate the terms with a local petroleum retailer to open Jollibee stores in their service stations. Adding on, the franchisee also promised that if Jollibee had any future expansions plan, he would support all the capital cost needed. (Bartlett, C. & Beamish, P, 2011)
Hong Kong
For Hong Kong, the proposition to Jollibee was to set up another store due to the overpowering success from their first store back in 1996. With that said, the main contribution to the revenue still came from the Filipino expatriates and domestic workers that was located nearby the store. Also, the mere fact was that Chinese customers is still the main targeted market, Jollibee was only able to acquire one-third of its total revenue. Despite the strategic location nearby the Central district, the traffic flow of pedestrians was unstable during the weekdays. Following,
Jollibee is a fast food chain that is based in Manila, Philippines. Inspired by Tony’s chef dad back in 1977, the home style hamburger quickly became an instant hit among the Filipino’s market. Today, Jollibee is a family of a total of 750 stores across worldwide in countries like Vietnam, Qatar, Saudi Arabia and more. (Jollibee.com.ph,2013)
Now, based on the article, Jollibee is considering to expanding into three different countries and they are Papua New Guinea, Hong Kong, and California. However, these three opportunities come with complications and challenges that Jollibee has yet to attain on the strategies of entering these markets.
Papua New Guinea
In Papua New Guinea, there is five million worth of market share but only undertaken by a few competitors like Stargate Food Bar and Tropical Lunch Haus (Lonelyplanet.com, 2013). Jollibee’s only concern was to raise their standards of food quality to take over the Australian chain market which adds into their competitive advantage to demote the future competitors from coming in. Moreover, the would-be franchisee had already agreed to help Tingzon negotiate the terms with a local petroleum retailer to open Jollibee stores in their service stations. Adding on, the franchisee also promised that if Jollibee had any future expansions plan, he would support all the capital cost needed. (Bartlett, C. & Beamish, P, 2011)
Hong Kong
For Hong Kong, the proposition to Jollibee was to set up another store due to the overpowering success from their first store back in 1996. With that said, the main contribution to the revenue still came from the Filipino expatriates and domestic workers that was located nearby the store. Also, the mere fact was that Chinese customers is still the main targeted market, Jollibee was only able to acquire one-third of its total revenue. Despite the strategic location nearby the Central district, the traffic flow of pedestrians was unstable during the weekdays. Following,
References: List Bartlett, C. & Beamish, P., (2011). Transnational Management. 6th Edn., McGrawHill, New York. BusinessDictionary.com. 2013. What is transnational strategy? definition and meaning. [online] Available at: http://www.businessdictionary.com/definition/transnational-strategy.html [Accessed: 28 Sep 2013]. HubPages. 2013. Managerial Functions. [online] Available at: http://jacobkuttyta.hubpages.com/hub/Managerial-Functions [Accessed: 28 Sep 2013]. Jollibee.com.ph. 2013. About Us | Jollibee Foods Corporation. [online] Available at: http://www.jollibee.com.ph/about-us [Accessed: 26 september 2013]. Lonelyplanet.com. 2013. Fast Food restaurants in Papua New Guinea - Lonely Planet. [online] Available at: http://www.lonelyplanet.com/papua-new-guinea/restaurants/fast-food [Accessed: 28 Sep 2013].