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Jollibee Case Study Transnational Management Individual Assignment

In: Business and Management

Submitted By astridwulandika
Words 1008
Pages 5
First started as an ice cream parlor in 1975, today Jollibee has become the number one fast food chain that serves burgers, sandwiches and rice meals in its originating country, Philippines (Beamish and Bartlett, 2014). It first started its foreign expansion to Singapore, and today it has expanded to 9 countries including United States. There are countless countries withholding potential for Jollibee’s expansion, and several of them will be discussed in the following discourse.

INDONESIA

One of the countries in which Jollibee should be expanding to is Indonesia. One of the main reasons Jollibee should expand to Indonesia is due to their strong growth of middle class. According to Kerschener and Huq (2011), middle class consumers are important drivers for consumption and growth. The growth of middle class will lead to increased disposable income, meaning consumers are likely to consume more. In Indonesia, the middle class have shown positive outlook from its growth. In 1999, only 25% of populations are classified as middle class, but in 2010, there was an increase in middle class population to 57% of the entire population (Afif, 2014). The increase in the middle class would allow Jollibee to have potential customers who are ready to spend their disposable income. Urbanization have also promoted to the growth of consuming class in Indonesia. Mckinsey Global Institute (2012) predicted that by 2030, an additional 90 million Indonesian would join the consuming class.

the taste and preferences of a potential customer is an essential element to the success of expanding overseas. According to euromonitor (2015), Indonesian fast food market has been led by chicken fast food and Asian fast food. Asian fast food consists of Indonesian food, Korean food and Japanese food for the most part. Both Asian fast food and chicken fast food serves fast food with rice, a factor…...

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