Maupoy,abegail G.

05 TASK PERFORMANCE 1 ARG

BSHM604

JOLLIBEE

SWOT analysis
Jollibee Foods Corporation has become the leading quick-service restaurant franchise in the
Philippines. They have more than 1,150 stores domestically and also have a presence in the rest
of Asia. Everything started in 1975 with Jollibee being solely an ice-cream parlor with just 2
locations.
The growth in the following years was rapid as they managed to be the first fast-food franchise
to hit 1 Billion Pesos in revenue in 1989. Jollibee was also the very first fast-food franchise that
went public in the Philippines stock exchange. Today, we will perform a detailed SWOT
Analysis of the brand to evaluate where it stands in 2020 and beyond.

Jollibee Strengths 2020:

 Very strong brand name in the Philippines.

The company is the equivalent of a local Mcdonald’s franchise in terms of recognition.

Filipinos love it and brand loyalty is incredibly high. As a result, in Asian countries where
there are Filipino ex-pats, Jollibee stores always have an edge against competitors.

 Tasty fast food dishes that are also healthier.

The company has succeeded in branding themselves as having a good balance between the
“typical” fast-food meals and healthy home-made dishes low in trans-fat.

 Locally styled food catered to Filipinos.

It is not just a global fast food that sells food in their market. They offer food made by
Filipinos to Filipinos. They know exactly what type of taste and overall feel the customers
want and they deliver. This is a very strong defensive mechanism against international
brands that would potentially attempt to grow their share in the market. No matter what
competitors do, they could never be the local icon Jollibee is.
 Convenient locations and 24-hour service:

With more than 1,150 locations, drive-thrus, online delivery, and 24-hour operation the
company strive to make the customer experience super easy and hassle-free. 

 Family Oriented Branding & Internal Governance:

Their focus has always been in promoting the traditional family values, by implementing a
likewise approach in the company structure and management. The result was winning the
best employer in the Philippines Award from Hewitt Associated and reaching the Top 20
Employers in Asia according to the Wall Street Journal.

Jollibee Weaknesses 2020:

 Super healthy and clean eating diet trends lower the appeal of eating fast-food.

No matter how “healthy” fast-food brands try to make their products, more and more
people decide to stop consuming them. This is an intrinsic weakness for brands like Jollibee
as the public has associated strictly with the fast-food industry.

 A small number of stores outside the Philippines due to Filippino based tastes and
branding.

Even though they have clearly conquered their domestic market, the same can’t be said for
the international market. Non-Filipino consumers would be more likely to prefer the rest of
the international fast-food brands

 Product offerings don’t change often.

Consumers might like the original tastes but every business has to continuously strive to
offer something new and exciting. 

 In 2020, the pandemic caused a loss of about $336M and led to the closing of close to
255 worldwide. 

jollibee Opportuniti es 2020:

 Acquiring or creating businesses that have a “clean eating” and healthy lifestyle brand
identity.

This is the only way Jollibee can please the entire spectrum of consumers. Having a
dedicated offering for each one, without trying to repurpose their existing brand.
 Offer new products and continue to innovate.

Jollibee needs to continue experimenting with their tastes so their loyal customer base will
have even more reasons to make an order.
 Further expansion in the international markets.

They can acquire well-established brands that follow the principles behind the success of
Jollibee inside the Philippines. Thus, diversifying their business portfolio and not relying on a
single market.

Jollibee Threats 2020:

 The ever increasing competition in the fast-food industry.

The giants of this space like Mcdonald’s, KFC, Burger King are always on the hunt for the
next opportunity. If they decide that they want to penetrate further the Asian market,
Jollibee will have a tough time keeping up.
 Regulations.

As everything globally shifts to a healthier way of living, many products, ingredients, or ways
of food processing can become banned. This means that rapid action is required in order to
constantly adapt to the ever-changing laws. That type of action and preparation always
demand large amounts of time, energy, and resources that could have been allocated
elsewhere.

Jollibee SWOT Analysis Conclusion:

 Jollibee is a very strong brand that can maintain its leading role in the Philippines if the
company continues to adapt and evolve. Despite the competition, the selling proposition is
unique enough to keep Jollibee apart from anyone else inside their country.

 If they manage to double down on their core strengths and don’t neglect their
weaknesses they will definitely continue to thrive. According to CEO Ernesto Tanmantiong,
the company will go under a major cost improving procedure. More specifically, according to
the CFO Ysmael Baysa 255 stores will close down and 95 stores will change ownership from
the company to a franchise.
PESTEL analysis
Political Factors that Impact Jollibee Foods Corporation

- Role Local Governments Play – Local governments are highly influential in the policy making
process and implementation as most of the policies and regulations are implemented by the
local government as enforcement agencies mostly report to local government in their own
states regarding various laws.

- Threat of Terrorist Attacks – We believe in the world of post 9/11, corporations such as
Caktiong Values have to live with operating under the shadow of a terrorist attack. The prudent
policy should be to take insurance and other types of hedging instruments to mitigate the
losses occurring because of the terrorist attacks.

- Likelihood of Entering into an Armed Conflict – From the information in the Jollibee Foods
Corporation case study, I don’t think there is a likelihood of country entering into an armed
conflict with a neighboring country.

- International Trade & Other Treaties – The country has a good record of adhering to
international treaties it has done with various global partners. The government of each party
has adhered to the treaties done by previous governments, so there is a consistency in both
rule of law and regulations.

- Regulatory Practices - The regulatory practices are streamlined with global norms which have
helped the country to improve its “ease of doing business” ranking.

- Government Regulations and Deregulations – The government is adhering to all the rules and
regulations under World Trade Organization norms. There is consistency in both policy making
and implementations of those policies.

- Transition of Government and Changes in Policy – There is consistency in policy making from
one government to another. Secondly governments from all parties adhere to the treaties
made by the previous governments.

- Segregation of Political Responsibilities between Different Government Agencies – There are

numerous government agencies which reduces the risk of overwhelming pressure by one
agency. But on the flip side it does increases both time and cost of doing business and getting
certifications and clearances

Economic Factors that Impact Jollibee Foods Corporation

- Financial Market Structure and Availability of Capital at Reasonable Rates – The quantitative
easing policy of Federal Reserve has led to liquidity flooding all across the global financial
markets. Caktiong Values can borrow cheaply under such circumstances. But this strategy
entails risks when interest rate will go up.

- Demand Shifts from Goods Economy to Service Economy – The share of services in the
economy is constantly increasing compare to the share of manufacturing, goods, and
agriculture sector.

- GDP Trend & Rate of Economic Growth – The higher GDP growth rate signals growing demand
in the economy. Caktiong Values can leverage this trend by expanding its product range and
targeting new customers. One way to start is by closely mapping the changes in – consumer
buying behavior and emerging value proposition.

- Price Fluctuations in both Local and International Markets – Compare to the level of
quantitative easing in last decade the prices of Caktiong Values products and prices of overall
products have remained sticky in the US market. Caktiong Values should consider the fact that
at deficit levels of United States in an emerging economy can lead to rampant inflation and
serious risks of currency depreciation.

- Work Force Productivity – Work force productivity in US has grown by 25-30 % in last two
decades even though the salaries are not reflecting those gains. It can enable Caktiong Values
to hire skilled workforce at competitive salaries.

- Level of Household Income and Savings Rate – Increasing consumption and stagnant
household income in United States had led to credit binge consumption. It has decimated the
culture of savings as people don’t have enough to save. Caktiong Values needs to be careful
about building marketing strategy that is dependent on “Purchase on Credit” consumer
behavior.

- Inflation Rate – The inflation rate can impact the demand of Caktiong Values products. Higher
inflation may require Caktiong Values to continuously increase prices in line of inflation which
could lead to lower levels brand loyalty and constant endeavors to manage costs. Cost Based
Pricing could be a bad strategy under such conditions.

Social Factors that Impact- Jollibee Foods Corporation

- Birth Rate – Birth rate is also a good indicator of future demand. USA has avoided the
European Union style stagnant economy on the back of slightly higher birth rate and higher
level of immigration.

- Education Level in Society – Education level of the society impacts both the quality of jobs and
level of income. High level of education often results in better jobs, higher income and higher
spending on complex and aspirational products.
- Level of Social Concerns & Awareness in Society – Higher level of social concerns in the society
often result higher consumer activism and pressure from non-governmental organizations, &
pressure groups.

- Attitude towards Savings – The culture of saving in US and China is totally different where
savings rate in China is around 30% , it is well below 15% in United States. This culture of
consumption and savings impact both type of consumption and magnitude of consumption.

- Gender Composition in Labor Market Caktiong Values can use gender composition of labor
market to understand the level of liberal nature of the society, women rights, and women’s say
in matter of societal issues and consumption decisions. The gender composition of labor market
is a good indicator of disposal income of household, priorities of the households, and related
needs.

- Immigration Policies and Level of Immigration – What are the immigration policies of the
country, what is the level of immigration, and in which sectors immigration is encouraged. This
will enable the Caktiong Values to determine – if required can it hire talent globally to work in
that particular market.

- Attitude towards Health & Safety – The attitude towards health and safety is often reflected in
the quality of the products and cost structures of manufacturing processes. Caktiong Values has
stringent norms for health and safety norms so in emerging economies it may have to compete
with players who don’t have high cost structures that of Caktiong Values.

- Attitude towards Authority – Various cultures in different part of the world have different
attitude towards authority. In Asia authority is respected while in west it is something to rebel
against. Caktiong Values should carefully analyze the attitude towards authority before
launching a marketing campaign for its products and services.

Environmental Factors that Impact Jollibee Foods Corporation

- Paris Climate Agreement and Commitment of National Government under the Agreement –
What are the commitments of the country under the Paris Agreement and what is the general
level of consensus regarding Paris Climate Agreement in the country. For example Trump not
standing by US commitments created an environment of uncertainty.

- Waste Management – What is the policy of waste management in the prospective market and
how Caktiong Values can adhere to the waste management requirements in that market.

- Influence and Effectiveness of Environmental Agencies – The role of environment standards

enforcement agencies is critical in safeguarding norms. But often in emerging countries these
agencies delay the process as a tactic to extract bribes. Caktiong Values should be aware of
presence of such practices in a country.
- Per Capita and National Carbon Emission – What is the per capita carbon emission of the
country and what is the overall level of carbon emissions of the country. This will help in better
predicting the environment policy of the country.

- Environmental Regulation Impacting Absolute Cost Advantage Dynamics in the Industry.

- Level of Consumer Activism Regarding Environmental Concerns – Caktiong Values needs to

know the level of consumer activism regarding environmental concerns is. It will help Caktiong
Values in both developing environmentally friendly products and thwarting PR stumble blocks.

- Influence of Climate Change – How climate change will impact Caktiong Values business model
and supply chain. For example if the supply chain is not flexible it can lead to bottlenecks if
shipments from one part of the world are delayed because of sudden climate shift.

Legal Factors that Impact Jollibee Foods Corporation

- Adherence to Common Law – Is the country following common law which is uniform for all
parties – whether domestic or international. If there is arbitrariness in the judicial process then
Caktiong Values can’t be sure of the judgments.

- Intellectual Property Rights Protection – Caktiong Values should assess the level of protection
that intellectual property rights get under the legal system of the country.

- Employment Laws – What are the employment laws in the country and are they consistent
with the business model of Caktiong Values. For example Uber employment system is not
consistent with French laws and it is facing challenges in the country.

- Business Laws – Before entering into new market – Caktiong Values has to assess what are the
business laws and how they are different from home market.

- Independence of Judiciary and Relative Influence of Government – The judiciary independence

often reflect both strength and credibility of the institutions in the country.

- Laws regarding Monopoly and Restrictive Trade Practices – As a new player Caktiong Values
shouldn’t be worried about the monopoly and restrictive trade practices law.

- Data Protection Laws – Caktiong Values needs to assess what are the data laws in the country
and what it needs to do to comply with them. For example most of EU countries now want the
EU citizen data to be saved in EU countries only.
References:
https://www.swotanalysistemplate.com/swot-analysis-of-jollibee/

https://embapro.com/frontpage/pestelcase/10981-caktiong-values