Going global may be a huge risk – but it is a risk many companies are willing to take for what it’s worth. As what finance majors say, “High risk – High Return”. Going global opens up many opportunities for the company, they just need to make sure that the benefit outweighs the threats.
Entering a new market territory means that you have a new source of income or revenue. A wide scope of geographic means companies have more market opportunities for them to maximize. As the world grows more connected, people in all nations achieve a far greater level of interdependence in activities such as trade, communications, travel, and political policy. Jollibee Foods Corp. (JFC) is one of the Filipino companies that took the risk and went global. They are currently making waves in the global market because Jollibee is now present in eight overseas markets: Vietnam, Brunei, Hong Kong, Singapore, the United States, Saudi Arabia, Qatar and Kuwait. JFC has hit its goal of becoming Asia’s most valuable restaurant chain and is further expanding its global footprint. I think that JFC’s decision to go global is a wise decision because they are taking advantage of the economic developments in the country that they opened in to. Their top executives also may have realized that their product is unique or superior to the competition in foreign markets that’s why they seek to take advantage of this opportunity.
Companies must be flexible enough to capture new opportunities and respond quickly in the face of unexpected risks. One of Jollibee Foods Corp. (JFC) reasons for its global success is its customer focus. In an interview of Jollibee’s Chief-Operating Officer, Ato Tamantiong said that “The market is so dynamic and fast-changing, so we do a lot of research. When Jollibee was small and we had little research funds, we directly asked customers their needs and wants.” Having said that, being able to adapt is really important in going global for a business to gain success in the foreign market they’re trying to enter in. Local customers should really be the focus of every company along with its cultures, traditions etc. because that is what is advisable according to the “Glocal” strategy. Jollibee’s menu also differs in every country that they’re in to, like McDonalds. They provide localized food so that customers would be encouraged into trying out their products.
Going global doesn’t confine you into opening new stores in another country. It can also mean acquiring local companies in that country and introducing your products. Jollibee has received “a lot of offers” from companies overseas which only means one thing – they are gaining brand awareness. Well, that’s very evident because Jollibee was recently named as the “World’s best international chain” according to a US website. Jollibee surpassed 15 other international restaurant brands in the list compiled by Thrillist.