Jollibee started being successful because they had the understanding of their customer in The Philippines. Due to some economic crisis that occurred in 1983, they were able to produce and create a cheap product that actually achieved the taste Filipino citizen wanted which McDonald was not meeting. They were able to create the Champ burger which differentiated the restaurant from others and at the same time it created flexibility in the menu. After a certain period of time Jollibee was able to structure its company by staying true to their brand and at the same time shape to the changes in market. The ability of the company to adapt and understand the customers mind created a competitive advantage which made them the leaders in the Philippines beating McDonalds and any other fast food restaurant in the Philippines.
One of the key elements Jollibee possessed was the fact that they knew they culture and each of the things they liked this created market leadership in the community and made McDonalds hard to compete with them. McDonalds discovered the tastes Filipino people liked to late and after that it was obvious that the customer had a different view towards the restaurant.
According to Geert Hofstede and the cultural dimensions the Philippines have a great power distance which implies that they are se to following orders from a higher superior. In other words if high rank people start enjoying something in this case Jollibee they will all follow them. As for the Individualistic degree, they have a very low score which makes them a very collectivist country. Being collectivist tells us that they are very loyal to the culture and community and anything that comes from that country will be preferred than an exported product. For the Masculinity score they have a very masculine society meaning that they work all the time and that they like to be decisive resolve problems through fights. The Philippines is not high on uncertainty avoidance they do not feel threaten by innovation but they do not like having unnecessary rules. Finally for the last degree of Hofstede dimension chart. The Philippines are considered to be a short term orientation culture. They respect traditions but they are very impatient on achieving quick results.
In conclusion, Jollibee was very smart because they evaluated their culture first and adapted to them. Another thing that helped the company was that it is a local restaurant and people in the Philippines tend to be more attracted to local things instead of new things. Jollibee used their competitive advantage of being a local company that has been in a country for a long time and they stuck to their values and became leaders against other competitive brands which later on gave them the power to start their franchises and become global company.
According to Geert Hofstede’s cultural dimensions, the Philippines exhibits a high power distance, indicating a tendency to follow orders from higher-ranking individuals. This suggests that if influential figures in the country, such as high-ranking officials or celebrities, show a preference for a particular brand or product, the general population is likely to follow suit.
In terms of individualism, the Philippines scores low, indicating a collectivist culture. This means that loyalty to the culture and community is highly valued, and products or brands that originate from within the country are typically preferred over those that are imported. This cultural characteristic has likely played a significant role in the success of Jollibee, as it is a local restaurant that resonates with the collective identity of the Filipino people.
The Philippines also scores high on the masculinity dimension, indicating a society that places a strong emphasis on work and assertiveness. This implies that the people of the Philippines are motivated to work hard and are more likely to resolve conflicts through confrontation or direct action. This cultural characteristic may have contributed to Jollibee’s success, as the company’s strong work ethic and decisive approach align well with the values of the Filipino society.
In terms of uncertainty avoidance, the Philippines scores relatively low. This suggests that the country is more open to innovation and does not feel threatened by uncertainty. However, the people of the Philippines do not appreciate unnecessary rules and prefer a more flexible approach. This cultural characteristic may have created a favorable environment for Jollibee, allowing the company to adapt and innovate without facing significant resistance.
Lastly, the Philippines is considered to have a short-term orientation culture. While they respect traditions, they are also known for being impatient and striving for quick results. This cultural characteristic may have influenced Jollibee’s strategy, as the company focused on achieving immediate success rather than long-term planning.
In conclusion, Jollibee’s success can be attributed to their understanding and adaptation to the cultural dimensions of the Philippines. Being a local company, Jollibee capitalized on the preference for local products and leveraged their competitive advantage in the market. By staying true to their values and effectively aligning with the cultural preferences of the Filipino people, Jollibee emerged as a leader in the industry, allowing them to expand globally through franchising.
Jollibee’s success in the Philippines can be attributed to its understanding and adaptation to the cultural dimensions of the country. One important aspect of the Filipino culture is its short-term orientation. This means that Filipinos tend to focus on immediate results and are often impatient. They value efficiency and strive for quick solutions.
This cultural characteristic of impatience and desire for quick results may have influenced Jollibee’s strategy. Instead of focusing on long-term planning, the company prioritized achieving immediate success. This approach allowed them to respond quickly to market demands and adapt their offerings accordingly. By catering to the Filipino preference for quick results, Jollibee was able to gain a competitive edge in the fast-food industry.
Another cultural dimension that Jollibee capitalized on is the preference for local products. Filipinos take pride in their local cuisine and have a strong affinity for homegrown brands. Jollibee leveraged this cultural preference by offering Filipino-inspired dishes that resonated with the local population. By staying true to their roots and incorporating familiar flavors into their menu, Jollibee was able to establish a strong emotional connection with its customers.
Furthermore, Jollibee effectively aligned with the cultural preferences of the Filipino people by embodying their values. Filipinos value family, togetherness, and joyous celebrations. Jollibee created a brand identity that embodies these values, positioning itself as a place where families and friends can gather and create lasting memories. This emotional connection with the Filipino culture helped Jollibee build a loyal customer base and establish itself as a beloved brand in the country.
Jollibee’s success in the Philippines provided a solid foundation for its global expansion through franchising. By understanding and adapting to the cultural dimensions of the Philippines, Jollibee developed a winning formula that resonated with consumers both locally and internationally. The company’s ability to leverage its competitive advantage in the Philippine market, while staying true to its cultural roots, has been instrumental in its expansion and continued success in the global fast-food industry.