GB410.

003
Professor Karpovsky
9/24/14
Homework (to hand in): Where in Jollibees value chain are they creating value for their
customers? What resources and capabilities enable Jollibee to achieve competitive advantage? Are
these resources and capabilities transferrable to the international context?
According to the case study, Jollibee had an array of both primary and supporting activities alike
that contributed to the creation of their products high value. Primarily, it seemed that Jollibees service
was the indisputable primary activity that differentiated their products from rivaling competitors. With an
emphasis on their Five Fs principles of friendliness, flavorful food, fun atmosphere, flexibility in
catering to customer needs, and a focus on families, Jollibee was able to capture a fast food market in the
Philippines that was being threatened by heavyweights in the industry such as McDonalds and KFC.
Rightfully, much of this expertise was attributed to Jollibees operational management capability. As
stated by a senior manager, Behind all that fun and friendly environment that the customer experiences
is a well-oiled machine that keeps close tabs on our day-to-day operations. Its one of our key success
factors. Though considered to be a supporting activity, one must also not forget to mention Jollibees
general administration and firm infrastructure and, more specifically, their effective planning and
excellent relationships with various stakeholder groups. While there was an initial impression that
massive expansion in foreign markets and maximizing revenues was the most effective course of action,
President Tony Tan Caktiong came to the realization that a slower, more stable and mutually beneficial
track would be more favorable for the company. Thus, as he went on to explain, Jollibee would be able to
securely monitor their services, develop long-standing relationships with suppliers and franchisees, and
thereby exude a higher value of their product in customer eyes.
Additionally, Jollibee was able to generate competitive advantages by way of various tangible and
intangible resources. Primarily, Jollibees finances played a crucial role in the companys success going
forward. Until 1993, Jollibee was able to finance all of their growth internally and expand into many other
countries by way of their own pocket. While they obviously didnt have as much money as the other
enormous fast food chains, it nonetheless allowed Jollibee to grow organically and thereby grant the
company some competitive parity in the market. Appropriately, Jollibees stores also became one of their
physical resources, especially considering the first mover advantage that they were able to attain
throughout their years of expansion within Asian countries. While Kitcheners vision of planting the
flag wasnt necessarily a realistic goal, the multiple stores gave the company more accessibility and, at
least domestically, helped to fend off many of their competitors. Their most important physical resource,
however, was undoubtedly their food. The spicier tinge and larger portions of their meals proved to be far
more appealing, giving Jollibee a sustainable advantage over foreign companies. Furthermore, Jollibees
human resources department proved to be an asset (hiring locals and highly experienced executives to
help make international decisions), as well as their reputation which was able to, domestically at least,
portray them as the local, nationally friendly fast food restaurant with incredibly tasty food. Each gave
Jollibee, what I believe to be borderline temporary/sustainable advantage in the market.

Unfortunately for Jollibee, many of their resources simply did not translate well within the
international context. For one, the specific Philippine taste that the company was so famous for needed to
be altered in other companies, so as to appeal to the local flavors. For example, the company created the
Jollimeal. This menu diversity, however, came at a cost of some operational efficiency. Also, Jollibee
found that their prices were too expensive in comparison to the cheap alternatives that many international
markets presented. This prompted even more repositioning from the company. Going forward, they
believed they should exude a world-class reputation rather than a local one. This led the company to
altering their stores dcor and many other tangible/intangible resources that simply did not translate to
foreign lands.