Posted by Sabrina Warren on May-02-2023
This case study presents a detailed strategic analysis of The Little Bee That Could Jollibee of the Philippines v McDonald s. The case analysis covers key managerial and strategic issues that The Little Bee That Could Jollibee of the Philippines v McDonald s is currently facing due to challenging internal and external environments. The case solution first conducts the strategic analysis by applying the relevant strategic management tools and frameworks, and then presents strategic recommendations based on overall analysis (Hamilton and Webster, 2018).
The case offers a holistic view of The Little Bee That Could Jollibee of the Philippines v McDonald s business environment. Case findings are relevant for all key stakeholders of The Little Bee That Could Jollibee of the Philippines v McDonald s. Reader should first read the case on The Little Bee That Could Jollibee of the Philippines v McDonald s, and then read the analysis.
The external business environment comprises political, economic, social, technological, legal and environmental factors that influence the strategic positioning of The Little Bee That Could Jollibee of the Philippines v McDonald s (Khalid and Rahman, 2019).
Here are key external environment characteristics:
External environmental forces are dynamic and uncontrollable
External environment can directly influence the The Little Bee That Could Jollibee of the Philippines v McDonald s strategic positioning
External environment requires continuous monitoring to timely identify the potential threats and opportunities (Shtal et al. 2018).
The The Little Bee That Could Jollibee of the Philippines v McDonald s must carefully examine the potential impact of global political unrest on its business operations
The The Little Bee That Could Jollibee of the Philippines v McDonald s should actively monitor, and respond to the changes to legislation
The The Little Bee That Could Jollibee of the Philippines v McDonald s should analyze how taxation policies can influence its profitability in different countries where the company is currently present (Khalid and Rahman, 2019).
Rising GDP and growing consumer spending can help The Little Bee That Could Jollibee of the Philippines v McDonald s in business expansion
Increasing interest rates can increase the debt cost for The Little Bee That Could Jollibee of the Philippines v McDonald s.
Reducing inflation can decrease the production cost of The Little Bee That Could Jollibee of the Philippines v McDonald s and increase profitability by driving up the sales revenue (Begley et al. 2005).
The aging population can affect the The Little Bee That Could Jollibee of the Philippines v McDonald s brand positioning, as The Little Bee That Could Jollibee of the Philippines v McDonald s currently targets young people.
Growing preferences for luxury items, and improving lifestyles can create more demand for The Little Bee That Could Jollibee of the Philippines v McDonald s premium-priced products (Perera, 2017).
Government is granting more technology incentives to fuel the innovation. It can help The Little Bee That Could Jollibee of the Philippines v McDonald s achieve its innovation objectives.
Emerging automation trends require The Little Bee That Could Jollibee of the Philippines v McDonald s to revisit its business model, and enhance process efficiency.
Improving technological infrastructure can enable The Little Bee That Could Jollibee of the Philippines v McDonald s to resolve its supply chain inefficiencies (Shtal et al. 2018).
The stringent environmental regulations require The Little Bee That Could Jollibee of the Philippines v McDonald s to ensure strict compliance with environmental standards.
Consumers’ growing environmental consciousness provides an opportunity to The Little Bee That Could Jollibee of the Philippines v McDonald s to launch more green, environment-friendly products.
The Little Bee That Could Jollibee of the Philippines v McDonald s should incorporate environmental thinking in its strategic decision-making process to position itself as a socially responsible organization (Moser, 2015).
The The Little Bee That Could Jollibee of the Philippines v McDonald s should take strict measures to avoid discrimination at the workplace.
The The Little Bee That Could Jollibee of the Philippines v McDonald s must abide by the consumer data privacy laws to avoid reputation-damaging lawsuits
The The Little Bee That Could Jollibee of the Philippines v McDonald s must also ensure strict implementation of workplace safety standards to comply with the health and safety regulations (Khalid and Rahman, 2019).
The growing number of suppliers is weakening their bargaining power against The Little Bee That Could Jollibee of the Philippines v McDonald s (Dobbs, 2014).
The Little Bee That Could Jollibee of the Philippines v McDonald s has a wide supplier network, which strengthens its negotiation ability.
Low product differentiation further reduces the supplier bargaining power, as The Little Bee That Could Jollibee of the Philippines v McDonald s can easily switch to suppliers that offer better terms and conditions (Dobbs, 2014).
Overall, the bargaining power of suppliers for The Little Bee That Could Jollibee of the Philippines v McDonald s is low.
There are a small number of buyers that buy in large quantities. It enhances their bargaining power against The Little Bee That Could Jollibee of the Philippines v McDonald s (Cho et al. 2019).
Buyers are price insensitive, and cannot easily switch to other companies due to economic and psychological switching costs. It reduces their bargaining power against The Little Bee That Could Jollibee of the Philippines v McDonald s.
High product differentiation further discourages the buyers from switching to competitors (Dobbs, 2014).
Overall, the bargaining power of buyers is moderate-to-low for The Little Bee That Could Jollibee of the Philippines v McDonald s.
High entry barriers make it difficult for new entrants to enter in the market
The high initial capital expenditure also erects an entry barrier for new firms
The Little Bee That Could Jollibee of the Philippines v McDonald s has a loyal customer base, which further reduces the risk of customers switching to new entrants (Grundy, 2006).
Overall, threat of new entrants for The Little Bee That Could Jollibee of the Philippines v McDonald s is low.
The emerging innovative technologies are increasing the threat of substitutes for The Little Bee That Could Jollibee of the Philippines v McDonald s
Growing threat of substitutes is compelling The Little Bee That Could Jollibee of the Philippines v McDonald s to continuously improve product quality (Bruijl and Gerard, 2018).
Changing consumer demographics and their growing tech-savvy nature is further increasing the substitute threat for The Little Bee That Could Jollibee of the Philippines v McDonald s
However, the brand loyalty increases the psychological switching costs, which somehow reduces the substitute threat (Dobbs, 2014).
Overall, the substitute threat for The Little Bee That Could Jollibee of the Philippines v McDonald s is moderate to high.
The competition among existing market players is intense
The market is mature, and is approaching saturation point, which further intensifies the industry rivalry
However, high-quality differences and brand loyalty deters the customers from switching to competitors (Dobbs, 2014).
Overall, the industry rivalry is moderate to high, which makes the business environment challenging for The Little Bee That Could Jollibee of the Philippines v McDonald s.
Up till now, the case study presented a holistic environmental and industry-level analysis. This section now presents the The Little Bee That Could Jollibee of the Philippines v McDonald s level analysis by applying relevant tools and frameworks.
SWOT is a strategic management framework that helps The Little Bee That Could Jollibee of the Philippines v McDonald s in understanding its core strengths and weaknesses. Framework also identifies opportunities and threats that reside in The Little Bee That Could Jollibee of the Philippines v McDonald s’s external business environment (Helms and Nixon, 2010).
The The Little Bee That Could Jollibee of the Philippines v McDonald s holds a market leadership position, and has highest market share.
The The Little Bee That Could Jollibee of the Philippines v McDonald s has high customer loyalty, which makes it difficult for competitors to attract its customers.
The The Little Bee That Could Jollibee of the Philippines v McDonald s has strong financial health, which allows the company to spend heavily on R&D, and fuel the innovation (Sarsby, 2016).
The The Little Bee That Could Jollibee of the Philippines v McDonald s has successfully positioned itself as a responsible corporate citizen.
The The Little Bee That Could Jollibee of the Philippines v McDonald s has a wide supplier and distribution network, which helps in the business expansion (Valentin, 2001).
The The Little Bee That Could Jollibee of the Philippines v McDonald s currently has a high employee turnover rate.
The The Little Bee That Could Jollibee of the Philippines v McDonald s is facing supply chain inefficiencies, which are lowering the organizational productivity (Madsen, 2016).
The The Little Bee That Could Jollibee of the Philippines v McDonald s is unable to quickly resolve the customer complaints, which causes customer dissatisfaction (Helms and Nixon, 2010).
The hierarchal structure of The Little Bee That Could Jollibee of the Philippines v McDonald s causes resistance to change.
The Little Bee That Could Jollibee of the Philippines v McDonald s can invest on emerging automation and artificial intelligence technologies to improve the process efficiency
The Little Bee That Could Jollibee of the Philippines v McDonald s can accelerate the green product development, and invest on green marketing efforts to capture the attention of environment-conscious customers (Solaiman et al. 2015).
The Little Bee That Could Jollibee of the Philippines v McDonald s can invest on an online influence marketing strategy to expand the reach to a young population
The Little Bee That Could Jollibee of the Philippines v McDonald s can find strategic partners around the globe to achieve its expansion objectives (Sarsby, 2016).
The growing industry competition among existing players and thinning profit margins has become a major threat for The Little Bee That Could Jollibee of the Philippines v McDonald s
Global political unrest can negatively affect the The Little Bee That Could Jollibee of the Philippines v McDonald s performance at the international stage
The expanding grey market and the influx of replica goods can negatively affect the The Little Bee That Could Jollibee of the Philippines v McDonald s revenue (Davidson et al. 2019).
Aging population can threaten the The Little Bee That Could Jollibee of the Philippines v McDonald s survival that, primarily focuses on young customers
After presenting the SWOT analysis, the next framework analyzing the The Little Bee That Could Jollibee of the Philippines v McDonald s’s marketing mix strategies.
The Little Bee That Could Jollibee of the Philippines v McDonald s offers a wide product variety that meets the needs of diverse customers
The Little Bee That Could Jollibee of the Philippines v McDonald s has consistently maintained high product quality to justify premium prices
The Little Bee That Could Jollibee of the Philippines v McDonald s invests heavily on the quality improvement and management to meet the customers’ product quality expectations (Singh, 2012).
The Little Bee That Could Jollibee of the Philippines v McDonald s invests on innovative marketing and communication strategies to set a clear product positioning, and communicate how its products are different from competitors.
The Little Bee That Could Jollibee of the Philippines v McDonald s offers warranties and after-sale services that enhances the overall customer experience (Ferrell et al. 2021).
The Little Bee That Could Jollibee of the Philippines v McDonald s adopts a premium pricing strategy, which is aligned with the company’s premium brand image.
The Little Bee That Could Jollibee of the Philippines v McDonald s avoids offering price discounts to maintain brand exclusivity (Baines et al. 2017).
The Little Bee That Could Jollibee of the Philippines v McDonald s does not charge any hidden prices, and has integrated transparency in its pricing model
The Little Bee That Could Jollibee of the Philippines v McDonald s also offers value-added elements, and adopts a bundle pricing strategy to boost the sales (Giri et al. 2020).
The Little Bee That Could Jollibee of the Philippines v McDonald s offers credit payment options for the customer convenience.
Key factors that The Little Bee That Could Jollibee of the Philippines v McDonald s considers while setting the prices include- brand image, customers’ expectations and purchase capacity, and on-going competition.
The Little Bee That Could Jollibee of the Philippines v McDonald s adopts a selective distribution strategy to reach the target market
The The Little Bee That Could Jollibee of the Philippines v McDonald s chooses distributors who are located in urban areas, and can preserve the premium brand image
Currently, The Little Bee That Could Jollibee of the Philippines v McDonald s has a distribution network that is spread in more than 50 countries
The Little Bee That Could Jollibee of the Philippines v McDonald s has adopted Omni-channel strategy, and sells its products through multiple online and offline channels, including- official outlets, authorized distributors, the company website and mobile application (Palmatier et al. 2016).
Well-integrated Omni-channel strategy offers a seamless experience to the The Little Bee That Could Jollibee of the Philippines v McDonald s customers.
The Little Bee That Could Jollibee of the Philippines v McDonald s avoids offering promotional discounts to preserve the brand exclusivity.
The Little Bee That Could Jollibee of the Philippines v McDonald s invests heavily on the celebrity endorsement strategies to promote the brand among the target market.
The Little Bee That Could Jollibee of the Philippines v McDonald s also have a strong social media presence, and specifically focuses on the online influencer marketing strategy to create brand awareness (Varadarajan et al. 2010).
The Little Bee That Could Jollibee of the Philippines v McDonald s uses both- online and offline marketing and communication channels to promote the brand.
The Little Bee That Could Jollibee of the Philippines v McDonald s’s promotional strategy is well-aligned with other marketing mix components to develop a clear brand positioning (Palmatier et al. 2016).
The The Little Bee That Could Jollibee of the Philippines v McDonald s has a wide distribution network that is spread across the globe.
The The Little Bee That Could Jollibee of the Philippines v McDonald s has extensive research and development capabilities that fuel the innovation process.
The The Little Bee That Could Jollibee of the Philippines v McDonald s offers a seamless customer experience through a well-integrated marketing mix.
The The Little Bee That Could Jollibee of the Philippines v McDonald s has strong financial health, and free cash flow that it can invest on innovative projects.
The The Little Bee That Could Jollibee of the Philippines v McDonald s has a strong presence over social media that drives the customer engagement, and increases the company’s reach to the target market.
The The Little Bee That Could Jollibee of the Philippines v McDonald s has successfully attracted and retained highly skilled staff that drives the overall organizational productivity, and helps the company in achieving its innovation objectives (Cardeal and Antonio, 2012).
The Little Bee That Could Jollibee of the Philippines v McDonald s has built strong relationships with suppliers that enable the company to achieve production objectives even when there is a material shortage in the market
The Little Bee That Could Jollibee of the Philippines v McDonald s has access to the rare and hard-to-reach raw material that is used to produce top-quality products (Cardeal and Antonio, 2012).
The Little Bee That Could Jollibee of the Philippines v McDonald s has successfully developed a strong brand reputation that keeps customers hooked with the brand
The Little Bee That Could Jollibee of the Philippines v McDonald s shares a strong emotional connection with its customers, which increases the psychological switching costs for them (Hernández and Garcia, 2018).
The Little Bee That Could Jollibee of the Philippines v McDonald s has developed its image as an environment-friendly, sustainable, and responsible brand that takes care of all stakeholders.
The Little Bee That Could Jollibee of the Philippines v McDonald s has developed an in-depth knowledge of customers’ intrinsic motivational needs, and has developed its brand image in a way that shares close relatedness with customers’ desired self-image (Liu et al. 2012).
The Little Bee That Could Jollibee of the Philippines v McDonald s has secured exclusive agreements with the suppliers to get access to unique raw materials. The exclusive agreement makes this resource inimitable for The Little Bee That Could Jollibee of the Philippines v McDonald s
The Little Bee That Could Jollibee of the Philippines v McDonald s has strong transformational and charismatic top leadership that has always successfully led the organization through a crisis (Nusari et al. 2018).
The Little Bee That Could Jollibee of the Philippines v McDonald s has developed a robust organizational culture that promotes cohesion, and strengthens the employees’ affective commitment with the organization.
The Little Bee That Could Jollibee of the Philippines v McDonald s has secured the access to human capital (skills and expertise) that is needed to exploit the above-mentioned resources.
The Little Bee That Could Jollibee of the Philippines v McDonald s has a well-developed technical infrastructure that supports the business operations, and fuels the innovation process.
The Little Bee That Could Jollibee of the Philippines v McDonald s has built extensive expertise, and gained years of experience that helps the company in leveraging its core strengths to exploit the available opportunities.
The Little Bee That Could Jollibee of the Philippines v McDonald s has built strategic partnerships that help the company in pooling the resources together to gain a strong competitive edge over rivals (Cardeal and Antonio, 2012).
The core products of the The Little Bee That Could Jollibee of the Philippines v McDonald s fall in the star category. The Little Bee That Could Jollibee of the Philippines v McDonald s has secured market leadership in these categories
The Little Bee That Could Jollibee of the Philippines v McDonald s’s market share in these product categories is growing due to high market growth potential
The Little Bee That Could Jollibee of the Philippines v McDonald s should pay specific attention to these product categories, and should try to preserve the market share
The intensifying competition imposes a threat to the The Little Bee That Could Jollibee of the Philippines v McDonald s’s market leadership in the ‘Star’ category
Overall, The Little Bee That Could Jollibee of the Philippines v McDonald s should increase investment on the star category to maintain leadership in the growing market (Mohajan, 2017).
The Little Bee That Could Jollibee of the Philippines v McDonald s has several product categories in which the firm has attained the market leadership position.
However, the market growth in these product categories has become slowed with time, as the market has become mature.
The Little Bee That Could Jollibee of the Philippines v McDonald s should ‘milk’ these product categories as they are an important source of cash flow.
However, The Little Bee That Could Jollibee of the Philippines v McDonald s should avoid increasing investment due to slowed market growth, and should bring innovation to keep adding new features.
Overall, The Little Bee That Could Jollibee of the Philippines v McDonald s should aim to maintain the current market position, but avoid increasing the investment due to slow market growth (Kader and Hossain, 2020).
The Little Bee That Could Jollibee of the Philippines v McDonald s has some product categories that are in a growing market segment. Despite high market growth, The Little Bee That Could Jollibee of the Philippines v McDonald s is unable to increase the market share in these segments.
The products under this category have the potential to become stars, as they operate in a high-growth market.
But, extensive investment is needed to understand the reasons behind the low market share, and it can affect the cash flow of The Little Bee That Could Jollibee of the Philippines v McDonald s.
Therefore, The Little Bee That Could Jollibee of the Philippines v McDonald s needs to evaluate if it is feasible to increase the investment to drive the market share, or it is wise to divest from this market segment (Mohajan, 2017).
The Little Bee That Could Jollibee of the Philippines v McDonald s has one product that operates in a market with low growth potential
The Little Bee That Could Jollibee of the Philippines v McDonald s has only a marginal share in this market.
As growth in this market is stagnant, and market share is also marginal, The Little Bee That Could Jollibee of the Philippines v McDonald s may consider divesting from this market segment.
It will be unwise to invest in this segment, as this product has turned into ‘dog’, which means the product is aged and waning.
Here, two options are available to The Little Bee That Could Jollibee of the Philippines v McDonald s:
o First, The Little Bee That Could Jollibee of the Philippines v McDonald s may entirely refresh the dying product.
o Alternatively, The Little Bee That Could Jollibee of the Philippines v McDonald s may divest this product from the portfolio.
Considering the current business environment, and competitive dynamics, The Little Bee That Could Jollibee of the Philippines v McDonald s is recommended to get rid of this product by taking divestment decisions (Torquati et al. 2018).
The Little Bee That Could Jollibee of the Philippines v McDonald s aims to expand its business operations to strengthen the competitive positioning in the market. Ansoff matrix here can help The Little Bee That Could Jollibee of the Philippines v McDonald s in taking the right business expansion decision.
Four business expansion strategies available to The Little Bee That Could Jollibee of the Philippines v McDonald s are- market penetration, market expansion, product development, and diversification (Loredana, 2016).
Choosing the right expansion strategy is important for The Little Bee That Could Jollibee of the Philippines v McDonald s to achieve its expansion objectives.
The Little Bee That Could Jollibee of the Philippines v McDonald s can penetrate into existing markets by expanding the market reach. This strategy is recommended when the market has high growth potential.
The Little Bee That Could Jollibee of the Philippines v McDonald s can expand the market reach by increasing the customer loyalty, and encouraging them to increase the spending.
The Little Bee That Could Jollibee of the Philippines v McDonald s can use the influencer marketing strategy as a tool to create e-WOM. It will create brand awareness, spread the brand message, and enable The Little Bee That Could Jollibee of the Philippines v McDonald s to penetrate deeper into the market.
Some other ways through which The Little Bee That Could Jollibee of the Philippines v McDonald s can penetrate into the market is- to increase the marketing and promotional budget, making price adjustments, and improving the product quality to gain a larger share from the existing market (Shaw, 2012).
The Little Bee That Could Jollibee of the Philippines v McDonald s can find new geographic markets to launch its existing products
Another way to pursue this expansion strategy is through celebrity endorsements. Celebrities can help The Little Bee That Could Jollibee of the Philippines v McDonald s in finding new customers for existing products
The Little Bee That Could Jollibee of the Philippines v McDonald s can also consider adding new product dimensions, or revising the packaging to reach new consumer markets.
Another way to pursue this expansion strategy is by exploring new distribution channels. The Little Bee That Could Jollibee of the Philippines v McDonald s can strengthen its presence on e-commerce, and open multiple online sales channels to reach new customer markets (Hussain et al. 2013).
The Little Bee That Could Jollibee of the Philippines v McDonald s can also charge two different prices to expand the reach from high-end to middle-class customers.
The Little Bee That Could Jollibee of the Philippines v McDonald s can expand its business operations by pursuing a product development strategy.
Instead of adopting a reactive attitude by coping with the competitors, The Little Bee That Could Jollibee of the Philippines v McDonald s must proactively behave while launching new products. Some possible proactive product development strategies are discussed below.
To pursue a proactive product development strategy, The Little Bee That Could Jollibee of the Philippines v McDonald s may increase investment on research and development activities to bring the product innovation.
The Little Bee That Could Jollibee of the Philippines v McDonald s may also invest on the market research to identify and respond to the unmet customer needs (Katsikeas et al. 2016).
The Little Bee That Could Jollibee of the Philippines v McDonald s may consider strategic alliance and partnership options to launch new products. It will enable the company to pool the resources and capabilities together, and share risks while launching new products.
Acquisition of smaller firms can also enable The Little Bee That Could Jollibee of the Philippines v McDonald s to successfully launch new products in the comparatively shorter time span.
The Little Bee That Could Jollibee of the Philippines v McDonald s can adopt the diversification strategy to reach new markets through new products.
The Little Bee That Could Jollibee of the Philippines v McDonald s can pursue either a related or unrelated diversification strategy.
The related diversification strategy requires The Little Bee That Could Jollibee of the Philippines v McDonald s to enter in similar markets. But, unrelated diversification requires The Little Bee That Could Jollibee of the Philippines v McDonald s to find entirely new markets (Dhir and Dhir, 2015).
Unrelated diversification is riskier, and can affect the brand image. So, The Little Bee That Could Jollibee of the Philippines v McDonald s should pursue a related diversification strategy.
By pursuing related diversification, The Little Bee That Could Jollibee of the Philippines v McDonald s can horizontally and vertically add new product lines
Through successful diversification, The Little Bee That Could Jollibee of the Philippines v McDonald s can increase its profitability, and generate more revenue from the new products and new market segments (Loredana, 2016).
The in-depth strategic analysis of The Little Bee That Could Jollibee of the Philippines v McDonald s reveals some interesting insights. The Little Bee That Could Jollibee of the Philippines v McDonald s currently holds strong competitive positioning. However, the challenging business environment and intensifying competition require The Little Bee That Could Jollibee of the Philippines v McDonald s to adopt a proactive behavior. The Little Bee That Could Jollibee of the Philippines v McDonald s needs to continuously assess its external and internal business environment to timely identify the potential threats and opportunities. Here, the application of relevant strategic management tools and frameworks can help The Little Bee That Could Jollibee of the Philippines v McDonald s in making wise business decisions. The key to success in a such challenging and complex business environment is- to proactively respond to the external environment by leveraging core strengths, and overcoming the weaknesses.
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