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Value Chain Analysis

Jollibee's value chain includes strong primary activities like inbound logistics where it sources 80% of chicken supplies directly from local farmers. For operations, it has a subsidiary called Zenith Foods that processes 20 tons of Chickenjoy and other products daily for over 600 branches. It also offers fast, 30-minute delivery and high quality customer service. For support activities, Jollibee has invested in technology, firm infrastructure, and procurement partnerships internationally while facing some criticism for its human resource practices around contractualization of employees. Overall, Jollibee remains the leading fast food chain in the Philippines through excellent inbound logistics and operations, and strong marketing, though contractualization issues could impact its reputation.

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Phil Ubalde
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16K views3 pages

Value Chain Analysis

Jollibee's value chain includes strong primary activities like inbound logistics where it sources 80% of chicken supplies directly from local farmers. For operations, it has a subsidiary called Zenith Foods that processes 20 tons of Chickenjoy and other products daily for over 600 branches. It also offers fast, 30-minute delivery and high quality customer service. For support activities, Jollibee has invested in technology, firm infrastructure, and procurement partnerships internationally while facing some criticism for its human resource practices around contractualization of employees. Overall, Jollibee remains the leading fast food chain in the Philippines through excellent inbound logistics and operations, and strong marketing, though contractualization issues could impact its reputation.

Uploaded by

Phil Ubalde
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Ubalde, Philippe Miguel 09/19/19

BAME101

Jollibee Value Chain Analysis

PRIMARY ACTIVITIES:

 Inbound Logistics
o Jollibee gets its chicken and other raw materials from different kinds of poultry
farms around the country.

o Under its own "Inclusive Business Program," the country's biggest buyer of
chicken deals and buys 80% of chicken supplies directly from local poultry
farmers. It is only during the Christmas that Jollibee imports from the US.
[ CITATION Rap12 \l 18441 ]

 Operations
o JFC hires a professional staff to ensure high-grade quality on their food
products. Moreover, Jollibee invested on its subsidiary called Zenith Foods
Corporation which is located in Laguna that holds its inventory. It is also
where their signature products are made and marinated.

o Located inside Carmelray Industrial Park 1 in Canlubang, Laguna, Zenith’s


six-hectare Luzon facility can process up to 20 tons of Chickenjoy, 40 tons of
its trademark hamburger patties, 56 tons of various sauces like the well-loved
spaghetti sauce, 200,000 pies, and up to 23 tons of hotdogs, daily all of which
are transported to Jollibee’s more than 600 branches across the country.
[ CITATION Phi08 \l 18441 ]

 Outbound Logistics
o Every Jollibee branch offers quality and fast delivery services (they promote
30 minutes guaranteed delivery) around the country to provide excellent
service. Jollibee also has international standard equipment to maintain the
quality of the finished food product.

 Marketing and Sales


o Jollibee has over 900 branches around the country. Jollibee has maintained
its marketing and advertising as they use TV advertising, Billboards and
banner ads, event sponsoring, and digital marketing channels. They have
successfully gained more exposure when they released short films on social
media about inspiring stories called Kwentong Jollibee.

 Service
o Jollibee offers high quality and fast customer service as it is also one of their
competitive advantages. They also offer a loyalty card which is called Happy
Plus that customers can use to purchase and get discounts in the future.
SUPPORT ACTIVITIES:

 Firm Infrastructure
o Jollibee’s mission is to serve great tasting food and bringing joy of eating to
everyone. Jollibee has been true to its mission and values as they are the
largest fast food chain in the Philippines serving best tasting chicken to its
customers.

 Human Resource Management


o Jollibee has been involved in an issue regarding contractualization as they
practice hiring of its employees under a six-month contract. This has said to
be done to reduce the company’s cost, leading to more profit.

 Technology Development
o Aside from having Wi-fis in most of their branches, Jollibee also invested
10.4B php for expansion in 2016 for the improvement of the company’s
logistics, service, and operations.

o Last year, capital expenditures focused on strengthening core businesses.


These investments were associated with information technology upgrade, the
increase in network development organisation and the acquisition of
American hamburger chain Smashburger.[ CITATION Aba16 \l 18441 ]

 Procurement
o Jollibee has partnered with multinational companies around the world to
reduce its cost and improve its supply chain management.

OVERVIEW:
Overall, Jollibee remains its competitive advantage in the industry – no wonder that it
is the leading fast food chain in the Philippines. In my analysis, Jollibee has been excellent in
its Inbound Logistics and Operations as it remains its good relationship with its suppliers
resulting to its high-quality production and service. It has also been outstanding in Marketing
as they successfully gained sales and exposure because of its marketing strategy. The only
con that I see is how they handle their human resource. The contractualization issue could
damage the company’s image and sales in the future.
References:

 https://business.inquirer.net/212249/jollibee-invests-p10-4b-for-expansion-this-
year
 https://www.jollibee.com.ph/about-us/
 https://www.philstar.com/business/business-as-usual/2008/06/23/69197/behind-
scenes-every-langhap-sarap-serving
 https://www.rappler.com/business/16782-jollibee-biggest-buyer-of-poultry-in-the-
philippines-spends-p6-billion-annually

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