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Strategic Management - Activity 6

Jollibee Foods Corporation (JFC) employs an efficiency business model, maintaining a large pricing gap compared to competitors through a low-priced, low-margin strategy catering to mass markets. JFC engages in strategic planning, market research, and rewarding employees to support its value chain activities of procurement, operations, outbound logistics, and marketing and sales. To gain competitive advantage, JFC pursues a cost leadership strategy by offering affordable Filipino meals, growing its prevalent market share while preserving stable profits through lower expenses and higher revenues.

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54 views2 pages

Strategic Management - Activity 6

Jollibee Foods Corporation (JFC) employs an efficiency business model, maintaining a large pricing gap compared to competitors through a low-priced, low-margin strategy catering to mass markets. JFC engages in strategic planning, market research, and rewarding employees to support its value chain activities of procurement, operations, outbound logistics, and marketing and sales. To gain competitive advantage, JFC pursues a cost leadership strategy by offering affordable Filipino meals, growing its prevalent market share while preserving stable profits through lower expenses and higher revenues.

Uploaded by

josefa soldivillo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BSTM 3.

2B

Jollibee Foods Corporation (JFC)

1. Identify the business model/s present in the given case study.

The business model presented in the case study is the efficiency model. As proven by Jollibee
Foods Corporation's process efficiency, which results in a low-priced and low-margin approach
to catering to the tastes of the mass market, this model comprises the employment of a low-
priced and low-margin strategy to catering to the tastes of the mass market. Furthermore, the
organization maintains a large pricing gap in comparison to its competitors.

2. Apply the value chain analysis to assess the activities of JFC using the facts of the given study.

Product Activities
Inbound Operations Outbound Marketing and Service
Logistics logistics sales
JFC keeps high- To support The company's JFC's customer To ensure
quality machines the smooth customer service effective
and equipment on flow of its service employees customer care,
hand for its activities, the department generate a daily the organization
everyday organization collaborates summary of additionally
operations. maintains with the branch customer employs subject
data operations to transactions to matter experts to
collection efficiently help the company conduct customer
services and execute order maintain track of support and
material processing and its customers' complaint
storage. warehousing. activity. This resolution
program is transactions.
consistent with
the company's
goal of
broadening the
reach of its
promotion and
advertising with
the assistance of
the company's
designated sales
force.
Support Activities
Firm infrastructure The organization engages in strategic planning and investor relations.
Human Resource It also has a rewarding compensation system for its employees, as well as
Management biased hiring and training practices.
Technology Through comprehensive market research, the Jollibee food firm is
Development engaged in product and process design.
Procurement JFC ensures that the machines and equipment used in its everyday
operations are of the highest quality.

3. Identify the type of strategy being employed by JFC in order to attain competitive advantage,
page on the facts of the given case.

To gain a competitive advantage, JFC employs a Cost Leadership strategy. As a result, their
expenses are reduced while their revenues are increased. JFC offers low-cost Filipino meals at an
affordable price. As a result, they are growing more prevalent, and nearly everyone can afford to
eat from them. As a result of this strategy, JFC's market share increases but earnings remain
stable, ensuring that profits remain stable even as the company loses market share. That's
why despite the lower purchase price, this method increases JFC's market share while
preserving profitability, because their huge customer base compensates for their low costs.

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