Jollibea In China Case Study

1000 Words 4 Pages
The reason for choosing China is because of two reasons. Firstly, China is potentially the largest market in the world with population of 1.4billion according to (Worldometers.info, 2015). Because of its population, it enables Jollibee to identify and invite potential new customers that would never have been able to visit your operations in the Philippines or other country. By having an actual branch in China enables to make inroads with new customers that Jollibee would not have been able to realize. Furthermore with China’s currency, the RenMinBi, has continued to soar for several year-long highs against the USD. When RenMinBi is high, it means that sales in China are worth more to companies, thus Jollibee targeting Chinese markets will …show more content…
The reason behind growth rate due to skilled and abundant workers, potential urban growth rate and Free Trade Zone (Greenway2china.com, 2015), therefore Jollibee should take this opportunity to enter China’s market. By establishing Free Trade Zone in Shanghai which will lead them to open financial industry to a foreign investor. Thus Jollibee not only get exempt of tariff and able to convert RenMinBi to any currency in capital and current account without any restrictions by doing business in Free Trade Zone, in addition it allows Jollibee to determine the interest rates of RenMinBi through markets. In addition Jollibee is allowed to import or export of ingredients, recipes or spices to branches in other countries. Besides that, Free Trade Zone offer operational benefits such as increased insurance and security on goods and indefinite storage opportunities. This conclude that economic growth rate of China will be a top one in the next decade by having average 9% annually due to industrialization, marketization and internationalization (Greenway2china.com, …show more content…
Although demand for fast food is increasing but it has only around 2700 fast food outlets in India leaving most people unreached for a huge population country, therefore Jollibee should take this opportunity to enter India’s fast food industry. As stated by (Gauba, 2015), KFC chicken centered menu is highly preferred by the Indian’s, thus Jollibee ought to adapt their menu base on local tastes in order to attract customers. Moreover with an average age of 23, India’s youth working age population will continue to grow hence giving them the ability to visit fast food restaurant which lead to growing of fast food industry in

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