1. How was Jollibee able to build its dominant position in fast food in the Philippines? What are the sources of competitive advantage was it able to develop against McDonalds in its home market?
Jollibee was able to build its dominant position in Philippines fast food market due to several important factors. Jollibee had a major advantage since they were already in the market and had a low barrier to entry. Since Jollibee had a low barrier to entry and knowledge and relationships with the local produce and meat sellers, they were able to provide customers with lower prices. The ability to provide lower prices made Jollibee a dominant force in the fast food market in the Philippines. Also, their recipes were catered to the taste of the Philippines market and what the customers were already accustomed to eating. The development of the “Five F’s” was crucial in establishing a purpose and a sort of mission statement, flavorful food, fun, flexibility, and families. The marketing strategy to implement the bee mascot helped create a connection between the brand and the youth. Thus strategy helped create brand recognition and further strengthened their market share. Jollibee made a good decision when they were in need of capital. They were able to avoid debt and interest by raising funds internally. Without having the liability of debt and interest, Jollibee was able to focus on growing the company and taking on McDonalds.
McDonalds took on the Pilipino market in 1981 and took aim on Jollibee and its market. McDonalds had an immense amount of resources, capital and experience in the fast food industry. Jollibee on the other hand had the advantage because of their market experience and recognition for good food among the Philippines. The ability for Jollibee to be first in the Philippines gave them the advantage to outline what great food tasted like and gain the trust of the local community by using local resources. Jollibee was able to use cultural proximity to their advantage and create a larger hamburger that tasted better than that of McDonalds. The spicy patties from Jollibee were a hit amongst the Pilipino versus the plain patties from McDonalds. The slightly more expensive Jollibee was still
Since the opening of Chick-Fil-A, they have received over 2 billion dollars in sales. The company’s great recipe for success is due to the marketing strategy of product, price, place, and promotion. The additional two P’s, purpose and people, also give a hand in the success. Purpose, guiding the company’s strategy planning process, and people, being key to implementing strategy. For the company, product itself is the fact that the food is made fresh every day, only making just enough inventory to sell. They found that customers reward great product. Since Chick-Fil-A makes their product, using the very best resources they can, the customers are willing to pay full
Kroc gave McDonald’s to people willing to allot great amount of time and effort in the McDonald’s name. His idea turned out to be affluent as many ideas were created because of this caring franchisees. The Filet-O-Fish (originally intended for Catholics during lent), Big Mac (in celebration to its fifth billion burger sold), Egg McMuffin (wanted to cater to breakfast lovers) ,Quarter Pounder, and McFlurry were all introduced by franchisees and all reaped prosperous benefits. In 1956 Kroc hired Harry Sonneborn, a former vice president of finances at ‘Tastee Freeze”. Harry quickly rose among the ranks at McDonald’s Corp. and even became the very first president and chief executive. A couple months later Sonneborn pitch the idea that McDonald’s hould own the buildings of the franchise and make franchisees pay rent. They even could evict franchisees if necessary for the first time. This revolutionized McDonald’s turning them into a semi-real estate institution forever changing urban land
This case analysis evaluates Chick-fil-A. It is designed to show the Strength, weakness, opportunities and threat. It delineates how the founding principles have guided the company over the years, and how it has responded slowly to change over the years. CFA has grown to be a force to reckon with in the industry with strength in customer experience and sandwich trademark. However, the emerging markets, social changes, economic issues and intense rivalry will continue to pose threat to this strong cultured company. At the end of the case analysis, we would have been able to
The fast food industry in the US is witnessing the increasingly fierce competition among Chipotle, Chick-fil-A, McDonald’s, Jimmy’s egg and KFC. In addition, consumers increasingly favored foods clean and healthy. Foreseeing this need, numerous popular fast food restaurants sprung up promptly. The first Chipotle restaurant is opened in 1993 by Steve Ells in Colorado. On the contrary, McDonald’s is founded by McDonald’s family with a long history as well as one of the oldest brand in America. My paper will explain the similarities and differences in their three characteristics between Chipotle and McDonald’s, both of them are large enterprises in the fast food industry which have large market shares. Then, I also give opinions to differentiate
The McDonald’s “Speedee Service System” launched in 1948 and made meals terribly cheap and fast. In Fast Food Nation, Eric Schlosser wrote, “The McDonald brothers’ Speedee Service System revolutionized the restaurant business… as word spread about the low prices and good hamburgers.” (20) For the first time, working-class families could afford to buy their children restaurant food. Customers were purchasing their “Pure Beef Hamburger” for 15 cents, and “Tempting Cheeseburger” for 20 cents.
The paper will determine how Five Guy’s philosophy sets them apart from other fast-food chains. Also will analyze the original values for the startup company and how it remains strong today. Thirdly, enumerate three factors that contributed to Five Guy’s success in such a short time and what effect, if any, external markets had on these factors. Finally, assess how ethical and social practices are part of the Five Guy’s culture and provide examples to support your choices.
Panera Bread is considered to be one of the U.S. most successful fast-casual restaurants. The company is one of the revolution makers in the industry of fast food, which managed to transform the traditional image and perception of to-go products that are available at an acceptable price on the market. As its initial founding company was established in 1981, Panera Bread managed to gain up to 4.5 billion USD in sales by the year of 2015, whereas the average sales per one store made up to 2.5 million USD annually (Thompson). Nevertheless, the company that once managed to upgrade bread and pastry into a trend of fast and healthy eating, today is struggling with massive competition on the fast food market. Its previous strategic strengths now became a burden that stops innovation and creativity and does not
I have chosen the company named by Mc Donald’s for my assignment topic as it is a worldwide and well-known fast food company covered in Asia and Europe countries .
Questions 1: How would you describe McDonald 's business strategy? What are the foundations of its competitive advantage?
McDonalds focuses of four major pricing strategies: product line, promotional, penetration, and value pricing. Product line pricing is a unique pricing strategy that falls solely on their many product lines (McDonald’s Pricing Strategies). Economic conditions may change rapidly, thus warranting change in the product or the product line. During the Asian currency crisis, McDonald’s replaced french-fries with rice in its Indonesian restaurants due to the cost considerations. With the collapse of the local rupiah, potatoes, the only ingredient McDonald’s imports to Indonesia, quintupled in price. In addition, a new rice and egg dish was introduced to maintain as many customers as possible the economic hardship (International Marketing. 9th edition pg.335). In order to appeal to the local demographic, international marketers must make sure products do not contain ingredients that might be in violation of legal requirements or religious or social customs. Since Indonesia is in a Muslim country, McDonalds “Maharaja Mac” is made with non-beef products (International Marketing. 9th edition pg. 336).
Even though McDonald’s and Burger King are really similar, they are also really different. They both try to have good advertising but McDonald’s is, most of the time, ahead. Their food seems to have the same condiments, but again, they are far away to be the same. They appear as the two most famous fast food restaurants around the world, but each one of them has their own
REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008
1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?
Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.
3. Describe Family Dollar’s competitive advantages and disadvantages with respect to competition from conventional supermarkets and box stores.