Recommendations of Jollibee Foods Corp. (B): Global Focus Case Analysis

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Recommendations of Jollibee Foods Corp. (B): Global Focus Case Study Solution

On the basis of above internal and external analysis of the business in addition to the evaluation of various options, the company is recommended to consider alternative 3. As alternative 3 would allow the company to expand in international markets with no decrease in its local revenues and any deterioration of its market position. By considering Alternative 3, the business could keep its store experience and brand name uniqueness. Nevertheless, it could also consider alternative 2 that could enable the company to access the markets with no possible financial investment. The company could pursue alternative 1 which would make it possible for the business to focus on prospective global markets rather than the local markets but as the business is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decline in business's income. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Jollibee Foods Corp. (B): Global Focus Case Solution Stores

Growth towards global markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good alternative for increasing the global presence of the business. The closing of domestic stores might highly affect the profits of the firm as above 90% of its stores are situated domestically and closing those shops would ultimately lower the revenues of the firm. Moreover, the company has a long term market position in US which can not be generated quickly in the new markets. The alternative would help the company to expand in international markets in addition to the removal of issues raised in its regional markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in earnings from international markets.
• Elimination of issues related to variety.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Jollibee Foods Corp. (B): Global Focus Case Solution Stores

Alternative 2 includes the introduction of online market locations through producing a correct company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture a serious risk to the market share of business. Moreover, the rivals are shifting towards click and Recommendations of Jollibee Foods Corp. (B): Global Focus Case Analysis stores with Space presenting Piperline. This shift towards online markets might lower the revenues for company. In this scenario the business might think about presenting Click and Recommendations of Jollibee Foods Corp. (B): Global Focus Case Help shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Threat to the market position
• Removal of brand name Uniqueness
• Elimination of the excellent store experience.
• Danger of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the business might think about, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of profits of the business. The pros and cons associated with Alternative 3 are provided listed below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Expedition of brand-new international markets.
• Boost in income from global markets.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems related to variety.
• Differences in cultures could led to a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.



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