International Business and Expansion Strategies: A Case Study of Jollibee

Business

Introduction
 International Business means commerce of products, technology, service, knowledge or capital
across national borders or can be said at a global level.
 It is also called as globalization. It consist of transactions of goods and services cross borders that
is in between two or more countries.
 Economic Resources contains people, capital and skills that can be transferred across borders with
the intention of producing physical goods and services like banking, construction and insurance.
 To start a business overseas the companies need to establish a separate market into global market.
 Jollibee is one of the biggest fast food chain established in Philippines.

Strategy Applied for Foreign Entry
 Franchising: It is a system where the parent company owner gives the right to an semi independent
owner (franchisees) to run the business in the original trade mark or to be identified with the
trademark in return of fees and royalty and to sell the products and services. Benefits for franchising
is it has low political risk and cost and this allows to company to simultaneously expands it's
business in different regions across the world.
 Licensing: It is an agreement that allows the foreign organisation to produce a proprietor' s product
but for a particular time duration in a specific market. In this home country(licensor) gives limited
rights and resources available to the host country(licensee). Benefit of licensing is the home country
gets an extra money for the technical know how and the services.
 Direct Export: This is the most common mode of entering into a foreign market. This works best
when the volume is small. In this strategy the home country uses their own resources that is capital,
people etc. to produce the goods and directly export it internationally having full control on the
distribution and profits generated.

Competitive Dynamics
 The competitive strategies primarily include the internal outlook that is meet the demands of the
customer's in the changing environment.
 For Jollibee Incorporation the basic motive should be to know the taste and preferences of the
customer's. As the product will only be competitive when it is according to the choices of the
people and their taste. Quality matters above everything.
 As the business is new the company has to take care of the customer's choices in only this way they
can attain success. To enter into the new market the company should put a tight control on the
operations of the management and the market.
 Basic research is must, and should be done regularly to keep a check on the market activities and
after knowing the demands and tastes the consumers prefer should be brought to them and should
be innovative that is different from what the other means those who are already there is offering to
them.
 Because that will be only reason the consumers will invest in the food that the company is offering .