Jollibee Foods Corp. (A): International Expansion, Video SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Jollibee Foods Corp. (A): International Expansion, Video
Presents interviews with CEO Tony Tan Caktiong and international division VP, Noli Tingzon, elaborating on issues and raising new issues on Jollibee's global strategy and organization.
Swot Analysis of "Jollibee Foods Corp. (A): International Expansion, Video" written by Christopher A. Bartlett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Caktiong Jollibee's facing as an external strategic factors. Some of the topics covered in Jollibee Foods Corp. (A): International Expansion, Video case study are - Strategic Management Strategies, International business, Marketing, Strategy execution and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Jollibee Foods Corp. (A): International Expansion, Video casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, wage bills are increasing, cloud computing is disrupting traditional business models, banking and financial system is disrupted by Bitcoin and other crypto currencies, technology disruption, talent flight as more people leaving formal jobs,
increasing energy prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Jollibee Foods Corp. (A): International Expansion, Video
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Jollibee Foods Corp. (A): International Expansion, Video case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Caktiong Jollibee's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Caktiong Jollibee's operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Jollibee Foods Corp. (A): International Expansion, Video can be done for the following purposes –
1. Strategic planning using facts provided in Jollibee Foods Corp. (A): International Expansion, Video case study
2. Improving business portfolio management of Caktiong Jollibee's
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Caktiong Jollibee's
Strengths Jollibee Foods Corp. (A): International Expansion, Video | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Caktiong Jollibee's in Jollibee Foods Corp. (A): International Expansion, Video Harvard Business Review case study are -
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Caktiong Jollibee's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Caktiong Jollibee's has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Low bargaining power of suppliers
– Suppliers of Caktiong Jollibee's in the sector have low bargaining power. Jollibee Foods Corp. (A): International Expansion, Video has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Caktiong Jollibee's to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Caktiong Jollibee's is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Caktiong Jollibee's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Jollibee Foods Corp. (A): International Expansion, Video Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Caktiong Jollibee's is one of the leading recruiters in the industry. Managers in the Jollibee Foods Corp. (A): International Expansion, Video are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
High switching costs
– The high switching costs that Caktiong Jollibee's has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Strong track record of project management
– Caktiong Jollibee's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High brand equity
– Caktiong Jollibee's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Caktiong Jollibee's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Caktiong Jollibee's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Christopher A. Bartlett can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the Jollibee Foods Corp. (A): International Expansion, Video Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Training and development
– Caktiong Jollibee's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Jollibee Foods Corp. (A): International Expansion, Video Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Successful track record of launching new products
– Caktiong Jollibee's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Caktiong Jollibee's has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Strategy & Execution field
– Caktiong Jollibee's is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Caktiong Jollibee's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Jollibee Foods Corp. (A): International Expansion, Video | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Jollibee Foods Corp. (A): International Expansion, Video are -
Interest costs
– Compare to the competition, Caktiong Jollibee's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High bargaining power of channel partners
– Because of the regulatory requirements, Christopher A. Bartlett suggests that, Caktiong Jollibee's is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Lack of clear differentiation of Caktiong Jollibee's products
– To increase the profitability and margins on the products, Caktiong Jollibee's needs to provide more differentiated products than what it is currently offering in the marketplace.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Jollibee Foods Corp. (A): International Expansion, Video, in the dynamic environment Caktiong Jollibee's has struggled to respond to the nimble upstart competition. Caktiong Jollibee's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Jollibee Foods Corp. (A): International Expansion, Video HBR case study mentions - Caktiong Jollibee's takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Workers concerns about automation
– As automation is fast increasing in the segment, Caktiong Jollibee's needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Caktiong Jollibee's supply chain. Even after few cautionary changes mentioned in the HBR case study - Jollibee Foods Corp. (A): International Expansion, Video, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Caktiong Jollibee's vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Caktiong Jollibee's has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Jollibee Foods Corp. (A): International Expansion, Video has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Caktiong Jollibee's 's lucrative customers.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Jollibee Foods Corp. (A): International Expansion, Video HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Caktiong Jollibee's has relatively successful track record of launching new products.
Products dominated business model
– Even though Caktiong Jollibee's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Jollibee Foods Corp. (A): International Expansion, Video should strive to include more intangible value offerings along with its core products and services.
Opportunities Jollibee Foods Corp. (A): International Expansion, Video | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Jollibee Foods Corp. (A): International Expansion, Video are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Caktiong Jollibee's can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Jollibee Foods Corp. (A): International Expansion, Video, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Caktiong Jollibee's can use these opportunities to build new business models that can help the communities that Caktiong Jollibee's operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Caktiong Jollibee's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Loyalty marketing
– Caktiong Jollibee's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Manufacturing automation
– Caktiong Jollibee's can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Buying journey improvements
– Caktiong Jollibee's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Jollibee Foods Corp. (A): International Expansion, Video suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Caktiong Jollibee's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Caktiong Jollibee's can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Caktiong Jollibee's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Using analytics as competitive advantage
– Caktiong Jollibee's has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Jollibee Foods Corp. (A): International Expansion, Video - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Caktiong Jollibee's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Caktiong Jollibee's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Learning at scale
– Online learning technologies has now opened space for Caktiong Jollibee's to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Caktiong Jollibee's to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Caktiong Jollibee's to hire the very best people irrespective of their geographical location.
Threats Jollibee Foods Corp. (A): International Expansion, Video External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Jollibee Foods Corp. (A): International Expansion, Video are -
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Caktiong Jollibee's in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Caktiong Jollibee's can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Jollibee Foods Corp. (A): International Expansion, Video .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Caktiong Jollibee's business can come under increasing regulations regarding data privacy, data security, etc.
Increasing wage structure of Caktiong Jollibee's
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Caktiong Jollibee's.
Regulatory challenges
– Caktiong Jollibee's needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Caktiong Jollibee's in the Strategy & Execution sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Caktiong Jollibee's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Stagnating economy with rate increase
– Caktiong Jollibee's can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Caktiong Jollibee's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Caktiong Jollibee's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High dependence on third party suppliers
– Caktiong Jollibee's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Caktiong Jollibee's needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Jollibee Foods Corp. (A): International Expansion, Video Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Jollibee Foods Corp. (A): International Expansion, Video needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Jollibee Foods Corp. (A): International Expansion, Video is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Jollibee Foods Corp. (A): International Expansion, Video is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Jollibee Foods Corp. (A): International Expansion, Video is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Caktiong Jollibee's needs to make to build a sustainable competitive advantage.