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.
Geert Hofstede’s cultural dimensions provide valuable insights into the cultural characteristics of the Philippines. One important dimension is power distance, which refers to the extent to which people in a society accept and expect unequal distribution of power. In the case of the Philippines, there is a high power distance, indicating that people are accustomed to following orders from higher-ranking individuals. This cultural characteristic plays a significant role in shaping consumer behavior, as people tend to follow the preferences and choices of high-ranking individuals or influential figures.
The Philippines also scores low on individualism, indicating that it is a collectivist society. Collectivism emphasizes loyalty to the community and culture, and people tend to prefer products and services that come from within their own country. This cultural characteristic highlights the importance of local brands and products, as they are seen as more trustworthy and preferred over foreign or exported alternatives.
Another dimension is masculinity, which refers to the degree of assertiveness and competitiveness in a society. The Philippines is considered to have a very masculine society, meaning that people work hard and are decisive in resolving problems, sometimes resorting to confrontations or fights. This characteristic suggests that a strong work ethic and determination are highly valued in the Philippines, and businesses that align with these values are more likely to succeed.
In terms of uncertainty avoidance, the Philippines does not score high. This means that the society is open to innovation and does not feel threatened by uncertainty. However, unnecessary rules and regulations are not favored. This cultural characteristic implies that businesses and products that offer new and innovative solutions can be well-received in the Philippines, as long as they do not impose unnecessary restrictions or regulations.
Lastly, the Philippines is considered to have a short-term orientation culture. This means that while they respect traditions, they are also impatient when it comes to achieving quick results. This cultural characteristic suggests that businesses need to adapt and respond quickly to consumer demands, as the market is dynamic and constantly evolving.
In conclusion, Jollibee’s success can be attributed to their understanding and adaptation to the cultural characteristics of the Philippines. By being a local restaurant and aligning with the values of the collectivist and masculine society, Jollibee was able to gain a competitive advantage. Their emphasis on tradition and quick results resonated with the short-term orientation culture of the Philippines. This, coupled with their ability to leverage their local brand identity, allowed Jollibee to become a leader in the market and expand globally through franchises.