Jollibee Foods Case Study
In the country of Papua New Guinea, Jollibee had the rare opportunity to be the first international fast food company in the market and had the advantage of building customer loyalty without the threat of competition from other companies. They had chosen a prime location in the …show more content…
They had the opportunity for local investment that could further grow the business and cover the costs over the long-term.
Noli Tingzon was faced with the choice to expand to a prime new location in Kowloon, Hong Kong. When Jollibee Foods entered the Hong Kong market in September 1996, they were able to quickly able to expand to two other franchises in Central, Hong Kong. The success of those franchises depended on the targeting of the Filipino expat community and placing the franchises in a major transit hub that was easily accessible. However, the problem for Jollibee Foods in Hong Kong was that they’re menu could not appeal to the local Chinese market. Unlike Papua New Guinea, Hong Kong has a massive fast food industry with McDonald’s having a stronger brand awareness. If the locals did not know the brand in a busier area of Hong Kong, they are not going to suddenly be appealed to the brand in a new location. There was also a friction between the local Chinses managers and the Filipino imported workers and it was difficult for Jollibee to manage the day-to-day operations