Plan expansion in Vietnam market
Jollibee is worldwide company that owns many fast-food restaurants all over the world. The company is galvanizing its plan to expand operation in the Vietnam country. As a starting point, this was carried out by thorough analysis of the environment, both internal and external factors in order to take a fit strategy to work in market. For many years, Jollibee has become the biggest known fast food restaurant in the Philippines. Presently, the Filipino group opened the eatery as its first in Vietnam in 1996, and currently operates nine in the city. Last October, Jollibee opened some branches in few cities, the first store outside Ho Chi Minh City, which borders the province.
The business operation has many existing issue need to be improve. Reliance on supply from foreign can have some problems on keeping stability on material of product, the cost on transportation may be high in which it increases the price of products and the inconsistent in service from shop to shop made the brand of JFC was being distracted. With competences that competitors do not obtain in Filipino taste as well various range of products, plus the experience in business in Asian environment that as an advantage then the company has opportunity to push the market share up.
Expanding in Vietnam market where company will face the rivalry severely from other competitors, it is pursue the differentiation strategy which seeks to provide products or services that offer benefits different from those of competitors and that are widely valued by buyers. Besides, there is the weakness of reliance on some group and the increase of inflation that may make profitability of company being low in short-time.
It is recommended to use the differentiation strategy to exploit the Filipino specialties that other competitors cannot provide. It may allow JFC to charge a premium price for that, the higher price will more than cover the extra costs incurred in offering the unique product like Filipino taste. The strategy should be carried out by the Alliance method by corporate with other partners in Vietnam to exploit the distribution system as well customer base available in market
The report will define the context of Jollibee Food Corporation through its mission, values and vision. Identifying the key stakeholders of the company in Vietnam then explain the significance of conducting a stakeholders analysis. It is required to demonstrate ability to think strategically by explaining the possible considerations for strategic analysis of the company in expanding operation in Vietnam. Finally, prepare a strategic plan for Jollibee Food Corporation based on above analysis in the developing in Vietnam.
The sources of information are quoted from scenario, course book, book online, reference books and websites that involve the fast-foods industry. The fast-food industry is developing in Vietnam with many advantages to business but the data of this industry was not published widely, specially the figure of finance, marketing strategy. Moreover, surveys are mainly performed by foreign organization and also not easy to access. Hence, there are some assumptions in this report and the limitations were the inadequate of information from other competitors as well the official data of governments.
The values, vision and mission statements set the tone for not only business plan, they are also for organization. They define the approach Jollibee will follow and act as a guiding principle by which company functions. 1. Mission “To serve great tasting food, bringing the joy of eating to everyone” (JFC, 2009) has served as a guide for the brand and its business strategy. The mission describes some milestone that the organization will reach in the future and may require a decade or more to achieve. This mission is well when it pointed out what company wants to achieve by starting the business for long-term. This shows the fact that happy and satisfied customers are the life and breadth of Jollibee which reflected customer service as one of the key result areas on which employees were evaluated at the Jollibee.
2. Vision The Jollibee becoming the best tasting quick service restaurant (QSR) and have over many stores worldwide by year 2020 (JFC, 2009). This is performed by operating its QSR’s under the Jollibee and some other trade names as well also manufactures food products, as well as engages in leasing store sites primarily to its independent franchisees. This vision also connects to the statement of FSC battlecry in order to supply high standard on quality of products and fast services to bring the happiness in customer’s mind, in which customers are considered as centre and company commits that meet all of customer’s demand.
3. Values: Which are clear in everything Jollibee do, how organization operate to do that. Jollibee thinks that responsibility and customer focus which need to connect closely with the company’s activities. The company always has got responsibility to customer by commitment of spirit of family and fun with enthusiastic teamwork, respect business ethics (JFC, 2009). These statements on values from Jollibee revealed that company evaluates the quality of products and the satisfactory of customer as the most important thing in business. Core competencies of Jollibee are the ability to supply Filipino specialties by enough resources, processes or skills that competitors cannot, and that provides a distinctive competitive advantage in market. Moreover it also gets competence through the low price when compared with other products from competitors like KFC and Lotteria.
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