OVERVIEW

Jollibee Foods Corporation is eyeing international expansion despite the challenges brought by the
Covid-19 pandemic. The company plans to launch outlets in Scotland, Malaysia, Europe, and Vietnam.
This expansion plans on international markets to widen the customer base of Jollibee Foods
Corporation. According to JFC, its outlets are beginning to branch out beyond their traditional market of
primarily Filipinos living abroad, and it has set its eyes on attracting more domestic customers by
offering local favorites. On the other hand, contactless kiosks are being implemented in the new Jollibee
store to respond to the pandemic, providing safe, fast, and convenient transactions among the
consumers. This event is an excellent opportunity for the company since franchising and branching out is
a great way to expand the market and achieve market penetration.

In achieving growth objectives and gaining competitive advantage, JFC applied to its operations the
Michael Porter's Generic Strategies, which are cost leadership, differentiation, focus strategies, and
intensive growth strategies. The term "cost leadership" refers to the practice of gaining a competitive
advantage by reducing the prices of the products offered to target consumers. The aim of using this
strategy is to maintain the company's market position through effective management of the supply
chain. On the other hand, differentiation is applied to achieve the company's growth objectives. JFC
utilizes its innovation to offer a variety of foods that would satisfy the consumers. Next is the Focus
strategy, which is adopted by serving the needs of a niche market segment at the lowest possible price.
Lastly, the intensive growth strategies which focuses on the development of new markets. This is
beneficial to the company since geographical expansion are risky.

Furthermore, to launch the company into the international market successfully, JFC should first
implement promotional strategies. Raising the company's brand awareness is necessary, and it can be
done by increasing the advertisements by social media marketing. The second is adopting the local
adaptation strategy, which includes modifying the products to suit foreign preferences. Finally, Utilize
the Competitive Pricing strategy wherein the company would consider the competitor's price in setting
up its prices.

ALTERNATIVES:

1. Introduce Similar Product With Few Modification

PROS:

(a) Presenting a similar item with few modification would maintain the market position of the
Company

(b) Modification of similar item would attract more consumers.

CONS:

(a) Chances of failure of the brand-new product.

(b) It requires a large amount of capital for the modification and introduction.

2. Invest In Technology And Advertising

PROS:

(a) It would enhance the customer base

(b) It would help the company in adopting advance progress.

CONS:

(a) It requires a substantial amount of investment

(b) Experienced workforce is needed

3. DIVERSIFICATION

PROS:

The company may use the existing resources of the company in entering into new markets.

CONS:

It is considered as the riskiest and expensive form of strategy in the Ansoff Matrix since it involves new
products and new market bundled into one.

RECOMMENDATION

In light of the above analysis, it is recommended that the company focus on introducing similar products
with few modifications and geographical expansion to compete with its rivals who have already made
some changes and are concentrating their efforts primarily on expanding into new markets. The reason
for recommending these options is that introducing a similar product with a few modifications will help
the business attract more customers and expand its business portfolio. If the company were to expand,
it might increase its customer base and open up a new market for its current product, both of which
would boost the company's success and sales and give it an edge over the competition.

REFERENCES:

Cabuag, V. G. (2021, 6 april). JFC targets European expansion | VG Cabuag. BusinessMirror.

Geraadpleegd op 19 maart 2022, van https://businessmirror.com.ph/2021/04/07/jfc-targets-european-
expansion/

Jollibee Foods Corporation Generic and Intensive Growth Strategies. (z.d.). Essay48. Geraadpleegd op 19
maart 2022, van https://www.essay48.com/case/10981-Jollibee-Foods-Corporation-Porters-Generic-
Strategies

Jollibee Foods Corporation SWOT Analysis (10 Steps) - Strengths, Weaknesses, Opportunities & Threats.
(z.d.). SWOTAnalytica.com. Geraadpleegd op 19 maart 2022, van
https://swotanalytica.com/hbr/jollibee-foods-corporation.php