The industry to be analyzed is the Food Industry which is a complex global network of diverse

companies that provides most of the food for the world's population. It covers a wide range of
industry-oriented activities that produce, distribute, convert, process, prepare, store, transport,
certifies and pack food.

The companies selected are Jollibee, a Filipino multinational fast-food chain owned by
Jollibee Foods Corporation, and McDonald's, an American fast-food company, founded in 1940 as a
restaurant operated by Richard and Maurice McDonald, in California for each of Porter's competitive
strategies.

Jollibee McDonald's

- Cost leadership strategy involves McDonald's General Strategy defines

gaining a competitive advantage by the company's overall business
reducing costs. It is the basic common approach to competition. In-depth
strategy used by Jollibee Foods strategies define McDonald's
Corporation in different consumer approach to business growth in the
markets. global fast food industry.
- The main goal of using this strategy
is to maintain a market leadership - McDonald's main general strategy is
position through effective management cost leadership. In Porter's model,
of the value chain. this general strategy involves
- This strategy allows JFC to expand minimizing costs to provide products
its market share by targeting the at low prices. As a low-cost supplier,
middle class, which accounts for the McDonald's offers products relatively
Cost Leadership
largest share of the overall consumer cheaper than competitors.
market in most countries. Middle-class - The restaurant industry operates on
consumers generally attach great low profit margins, making it difficult
importance to the price factor, and to compete with a cost-leading
saving costs is the best strategy to marketing strategy. They have a
meet the needs of this consumer division of labor that allows them to
segment. recruit and train new rather than
- JFC focuses on the affordability and highly skilled chefs. These savings in
easy accessibility of products various processes allow the company
worldwide, resulting in high brand to offer its food at competitive prices.
awareness and strong sales growth McDonald's, the global restaurant
and a solid base for profits chain, uses a unique recruitment
competitive position. strategy to become a cost leader.
Differentiation - Adopting differentiation as a - The company also uses broad
secondary generic strategy allows JFC differentiation as a secondary or
to expand its customer base by supporting general strategy. This
emphasizing the unique characteristics secondary general strategy involves
of its products. developing the company and its
- JFC's strategic goal in employing this products to differentiate itself from
strategy is to differentiate itself by competitors. For example, through
 integrating innovation and responding McCafé products, McDonald's adopts
to the growing health concerns of a common strategy of mass
consumers. For example, JFC differentiation. - In addition, product
expanded its product line after studying innovation is related to McDonald’s
changing consumer preferences to broad differentiation generic strategy.
differentiate it from competitors and - In addition, product innovation is
widen the range of opportunities in the related to McDonald's general broad
industry. The combination of differentiation strategy.
differentiation and cost leadership has - McDonald's also offers a
helped JFC build a strong and loyal specialized (regional) version of its
customer base. menu. It also leads to product
- Thanks to a common differentiation differentiation from other competing
strategy, Jollibee Foods Corporation products.
positions its product offerings to stand - The addition of "free Wi-Fi" to every
out and differentiate it from available McDonald's in New Zealand (NZ) is
alternatives. As an experienced and another example of the difference. By
established brand, the company uses making these offers, they reduce the
differentiation as a tool to relieve price of products to make them more
pressure from other brands. attractive.
- Jollibee Foods Corporation adopts a This strategy becomes a competitive
focused strategy of both low cost and advantage over other business areas
best value for money. A low-cost for McDonalds'. But this strategy is
concentration strategy is adopted by unlikely to last and last, as others
meeting the needs of a niche market tend to imitate and manipulate their
Cost Focus segment at the lowest possible price. strategies to counter this cost
While the best value strategy is leadership strategy. To last longer in
adopted with a focus on taste, the size the industry, McDonald's has
and design of the product can best suit incorporated another strategy into its
the needs and requirements of the cost leadership strategy as a support
customer. strategy.
- Focusing on product attributes,
Jollibee Foods Corporation is revising
its branding strategy and making
continuous changes in product design
The company's broad differentiation
and packaging to meet customers'
strategy also helps. However, one
psychological expectations and
possible strategic direction for
maximize customer satisfaction value
McDonald's continued growth is to
for money.
establish more locations in
developing economies and in
Differentiation One of the key reasons for Jollibee
countries where the company does
Focus Foods Corporation's success is its
not have a presence in the market.
ability to select the right mix of general
The proposed strategic objective is to
and intensive growth strategies based
stimulate the growth of the company
on competitive and market conditions.
through a combination of market
Overall, the analysis shows that the
penetration strategy and in-depth
risks and costs associated with each
market development.
growth intensive strategy are different
and that the company selection for
each growth intensive strategy is tied
to the general growth strategies.
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