According to an article entitled International Expansion: Jollibee written by Viking (2010), Jollibee was able to attain a competitive advantage

over McDonalds by doing two things, first is by retaining tight control over operations management, which allowed it to price below its competitor and the second one is by having the flexibility to cater to the tastes of its local consumers. While they hired Tony Kitchner to handle their international relations to develop competitive advantages abroad, his international strategy is by planting the flag and targeting expats but it was executed haphazardly and resulted in losses for the firm. His eventual dismissal was largely due to his inability to manage intra-firm tensions. Likewise Viking (2010) said that it is important for the company to recognize flexibility as a competitive advantage, since it will become a foundation for Jollibees international strategy. Tight operations management and the flexibility to adapt to local tastes increases the wedge between customer willingness to pay and supplier opportunity cost. These savings in cost are then passed onto the customer, who is also receiving a product that better meets his or her needs. The ability of Jollibee to continue creating value for its customers by leveraging activities that is the key success factor for its international expansion. Tony Kitchner was hired to build the global Jollibee brand with the dual goals of positioning Jollibee as an attractive partner, while generating resources for expansion. Although there is the risk of targeting too narrow of a segment, Jollibees success in the niche market would allow it generate momentum for the companys expansion. Furthermore Andrew (2011) stated that when Jollibee entered international markets, it faced new challenges. The fast food industry is highly competitive and price wars and marketing innovations are seen frequently. The rivalry is also centered on the key success factors of the industry, which are good food, good service and reasonable pricing. Rivals are somewhat equal in capabilities and opportunities, thus making the competition stiffer. Internationally well-established players like KFC and McDonalds had high brand values that Jollibee found difficult to compete with. The threat of substitute products is considerable. Local street food and high-end restaurants form two ends of a range of substitutes. Potential entrants face entry barriers that will hinder them from entering the industry. These are the inability to gain access to technology and

specialized know-how, brand preference and customer loyalty, capital requirements, economies of scale, and strategically situated distribution channels. In a journal entitled JOLLIBEE FOODS CORPORATION AND THE GLOBAL MARKET by Rarick et al., (2011) they said that as Jollibee looks to the future it seeks greater expansion opportunities. The company plans on opening more stores, and in more markets, including the Indian market. Jollibee has experienced great success in its relatively short history, but it now faces a number of challenges. Rising food and fuel costs are putting pressure on the company to raise prices. Consumer spending in the Philippines is starting to weaken, especially among lower income consumers as their disposable income has declined. In addition, the flagship brand is coming under attack from McDonald's as it continues to open more new stores in the Philippines. According to a 2007 report by Tony Lopez in the Manila Times, McDonald's beats Jollibee in revenue per store, and has been gaining ground through better customer service, better kid's meals, and better cost and supply chain management. Undeterred by these developments, Jollibee continues to look ahead by expanding its restaurant chains into new markets. It appears that the same pioneering spirit that enabled Mr. Caktiong to establish the first ice cream shop in 1975 lives on.

According to Ungson (2008), however if it is initial expansion into international markets, some alarming events materialized. Under a new executive, the company expanded into eight new national markets in just two years. An international division was created to take charge of these operations. However, this divisions dogmatic stance on procedures began to cause strains with Jollibees domestic operation. The companys incursion into China also exposed a weakness in its otherwise successful business model, raising questions as to whether Jollibees products, which had been so carefully attuned to the Filipino palate, were attractive to the Chinese local market, that is, both Filipino expatriates in China, as well as the local Chinese. Moreover, more questions arose regarding the effectiveness of adapting from the expatriate customer experience to the local customer base. Not too long later, the company found itself overextended, both financially and operationally.

OTHERS: In a simple setting Oyama (2011) mentioned that acquisition of more companies is the game that Jollibee is playing. Recently in the domestic front, Filipinos were rocked by the news that Jollibee had acquired majority stocks of fast-food chain Mang Inasal. It wasnt so much the acquisition that stunned the public, it was the amount that Jollibee paid to do it P3 billion for a 70% stake in Mang Inasal. That was probably the time that people realized how gargantuan the Bee had grown since its humble beginnings in 1978. The first rule of business expansion is when youve grown bigger you dont stop, you grow even bigger. Jollibee has been on that path for some time now and there seems no stopping it. Perez (2010) said that there is no reason to doubt the ability of Jollibee to raise money to pay the owners of Mang Inasal for a controlling ownership of the chicken house. As of September 30, its cash and cash equivalents amounted to more than P9 billion of which more than P2.74 billion represents cash in banks. Not that it had to dip into these big savings. No. It only suggests Jollibees liquidity as the buyer of companies available for sale one of which happened to be Mang Inasal whose owners probably got an offer which was difficult to refuse. Likewise Ungson (2008) said that in 1984, Jollibee reached the 500 pesos million sales mark, catapulting the company onto the list of Top 500 Philippine Corporations. Also in 1897, after barely 10 years in business, the company joined the ranks of the Philippines Top 100 Corporations. It then became the first Philippine fast-food chain to break the P1 billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed on the Philippine Stock exchange, thus broadening its capitalization and laying the groundwork for sustained expansion locally and beyond the Philippines.

Bibliography: http://essaysforstudent.com/Business/International-ExpansionJollibee/47432.html http://www.allfreepapers.com/print/Jollibee--Case-Study-Analysis/1794.html http://www.y101fm.com/index.php/features/y101-predicts/349-jollibee-attacks-companyto-keep-expanding.html

http://www.businessmirror.com.ph/home/companies/3734-jollibees-unusual-surge http://books.google.com.ph/books?id=Mv7U69x9mcC&pg=PA162&lpg=PA162&dq=strategic+management+of+jollibee&sourc e=bl&ots=k7ie99lhsi&sig=Zv8f6qXko7jtST7c4JXitE59NDk&hl=en&sa=X&ei=lfGcTOgFcWdiAe53qm9Dg&sqi=2&ved=0CDkQ6AEwAQ#v=onepage&q=strategic%20mana gement%20of%20jollibee&f=false