SWOT Analysis of Jollibee Food
Jollibee Food Corporation is a famous fast-food chain. It is a Filipino multinational company. The company was founded by Tony tan Caktiong in 1978. It is headquartered in Jollibee Plaza, Ortigas Center, Pasig, Philippines. The product line of Jollibee is really diverse. They sell pizzas, pastries, coffee, hamburgers, chickens, fries, cakes, dumplings, and other fast-food items. The brand has a strong presence across the world with more than 5900 location points. In 2020, the annual revenue of the brand was 129,313 million Philippine pesos. To date, the company has employed more than 1130 employees to run its operations globally. Let’s read the detailed SWOT analysis of Jollibee Food,
When it comes to the competitors, Jollibee has got some intense competition from Burger King, Chick-fil-A, McDonald’s, Chipotle, Unilever, Nestle, Starbucks, White Castle, In-n-Out Burgers, and the list goes on. Today, we are going to conduct a SWOT analysis of the brand in order to find out its success story. SWOT stands for strengths, weaknesses, opportunities, and threats. Here’s the detailed SWOT analysis of Jollibee Food,
SWOT Analysis of Jollibee Food
Company Name: Jollibee
Founders: Tony Tan Caktiong
Founded: January 28, 1978, Quezon City, Philippines
Headquarters: Pasig, Philippines
Owner or Parent Company: Jollibee Foods Corporation
CEO: Ernesto Tanmantiong (July 1, 2014-)
Sector: Food and Beverages
Tagline: Langhap Sarap!
Unique Selling Proposition: To provide high-quality food, friendly and fast service in a better environment.
Customers: People who want to enjoy some quality fast-food items.
Target Consumers: Middle and upper-middle class.
Revenue: P6.3 billion (2021)
Net Income: P5.9 billion (2021)
Strengths of Jollibee | SWOT Analysis of Jollibee Food
Jollibee has successfully built a robust database of loyal customers. It is because of its ultimate hard work and dedication. They are providing consistent service to their customers. Their quality of food is still maintained which is its biggest strength.
24 Hours Service:
In the Philippines, Jollibee is one of the few fast-food chains that remain open 24/7 and provide service 24 hours a day. You can visit its outlets anytime to fill your tummy with some delicious food. They are open to customers and serve the best quality food. In order to manage 24/7 operations, they hire employees for different shifts and keep changing them.
Strong Distribution Network:
There is no doubt that Jollibee is one of the largest and most famous fast-food chains in the country. They have more than 750 stores across the country. They make sure that every store has enough food to serve customers. On the other hand, Jollibee has a strong presence in different countries such as Saudi Arabia, United Arab Emirates, Japan, Malaysia, Singapore, Vietnam, USA, Italy, UK, Canada, and others.
When it comes to quality and taste, no one can beat the level of Jollibee. They offer the best quality and tasty food worldwide. Its appetizing and appealing taste is enough to make you a fan of this company. Their recipe is secret and due to this reason, they are offering the same quality food to its customers.
The main purpose of the company is to satisfy the taste of users. They are very stick to this purpose and offer high-quality tasty food. Just because of this reason, its brand image is very strong and customers easily recognize the company.
Variety of Products:
The biggest strength of the brand is its extensive variety of food items. They offer cakes, hamburgers, chickens, pizzas, spaghetti, coffee, or you name it. Their recipes are successfully tested and all of their items are tasty.
Strong Brand Value:
The company ranks at the 239th position in Forbes as the World’s Best Employer (2020). On the other hand, the company has received several achievement awards and recognition from all around the world. So, its brand value is highly robust.
Weaknesses of Jollibee | SWOT Analysis of Jollibee Food
- Lack of Technology:
The technology infrastructure at Jollibee stores is still outdated even in this modern and fast-forward world. They are using outdated methods of food cooking. Although their food cooking pattern is good it takes so much time. No one wants to wait so much just for a pizza or a burger. The company is not utilizing the latest technologies, which is its major weakness. They should adopt new technologies to make Jollibee’s operation efficient.
- Insufficient Marketing:
When it comes to advertising or marketing, Jollibee does not use broad resources or channels to promote the brand or products. They follow a limited marketing strategy for marketing. Despite the fact that it is a multinational brand, extensive and robust marketing is crucial for staying ahead of the competition. The company should fix this issue as soon as possible.
- Pricey Items:
Most of its product line is pricey which can disturb its sale and revenue stream. Some customers are very cautious about pricey food. They prefer affordable prices when they are buying food. There is a chance that they stop buying products from Jollibee because of its premium prices.
- Campaigns like “ Say No to Fast-Food”:
These days, people are very conscious about health and food. They do not like unhealthy food especially fast food because it leads to several issues like obesity. Moreover, campaigns like “say no to fast food” can also hurt the business of the company. They can introduce healthy products to attract more customers.
Opportunities for Jollibee | SWOT Analysis of Jollibee Food
- Worldwide Expansion:
Some countries like India, Pakistan, Bangladesh, and more are very food-loving. They would love to taste food from Jollibee. It is a big opportunity for the company to expand its global operation in order to increase its market share and reach. It can target several countries for selling its products.
The recent pandemic has created a bad impact on businesses and companies. It has boosted the trend of online shopping. They love to order food online and free home delivery. It is imperative for Jollibee to adopt the latest technologies so that its customers can order food online and get fast home delivery. They can also tie up with food delivery services.
- Innovation of Product:
The taste and quality of food is unbeatable. Jollibee should introduce innovation in its product line by offering diet food, vegan food, and other healthy food options. They should come up with new ideas to target health-conscious customers. It would aid the company to enhance its product line and boost sales.
Threats to Jollibee | SWOT Analysis of Jollibee Food
- Diet Trends:
Nowadays, customers have become very careful about their health and food. They are boycotting unhealthy and junk food. Such campaigns or trends can destroy the business performance of the company. Moreover, its competitors are offering more healthy options. It is crucial for Jollibee to introduce a new and healthy product portfolio as soon as possible.
The fast-food chain sector is highly packed with a lot of big names such as Burger King, Starbucks, McDonald’s, Chipotle, and some local names. They have secured a strong market cap in the industry. They are the main competitors of Jollibee and continuously hurting its revenue and profitability. Also, its competitors are using innovative marketing and promotional ideas to attract customers. In the presence of these giants, it is hard for Jollibee to expand.
Covid-19 has shut down all kinds of gatherings, fun parties, and outdoor activities. Just because of this, the annual revenue and net income of the company have decreased.
Final Thoughts | SWOT Analysis of Jollibee Food
Despite all the weaknesses and threats, Jollibee Food Corporation is one of the most popular and largest fast-food chains in the Philippines. There are some areas such as limited adoption of technology, covid-19, rising competition, and social distancing that should be fixed ASAP. They need to adopt the latest technologies in order to offer food online. On the other hand, they should introduce healthy food items to gain the attention of health-conscious customers. These are some simple ways to expand the business globally and increase the overall profitability and revenue stream of the company in the highly crowded and competitive market.
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