Jollibee ,which was a Filipino chain of restaurants, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company .The company faced serious challenges with their international exposure. The challenges included the conflicts with franchisees and Joint venture, in addition there is conflicts between divisions. Another issue that the company faced was the entry into Papa New Guinea, United States of America and expansion plans in Hong Kong. The company has to consider the financial instability it faces while considering their plans.
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* Can create differentiation by cost advantage, customer experience and etc.
* Widen product range to include more local food items.
* Competition from both international companies and other local eateries.
* Political instability.
* Downturn in Economy.
* Rise in operational cost.
Strategic analysis and recommendations in Papua New Guinea, Hong Kong and California:
Papua New Guinea
In Papua New Guinea, with the limited small population of only 5 million people is not attractive enough to invest a tremendous amount to set up few stores at once. The local taste and preferences have not yet to be studied and examined as it is the same reason as why Jollibee failed in the Australia market. Only when these specific conditions have been met Jollibee can carefully investing on opening stores in Papua New Guinea.
First, the management issues within the Jollibee restaurant in Hong Kong should be resolved first before any plans to be implemented, after that, Jollibee should adapt to menu to the local tastes and preferences, then concentrate on the issues and problems within the three existing stores instead of opening a new store. With a large competitor in the market (McDonald’s), Jollibee can learn techniques and management styles from and be less dependent on the Filipino expatriates.
Establishing new business in Daly City will be supported by a large population of Filipino in the city. The menu does not need to be altered too much as the menu was already successful in Guam.