Why was JCB's strategy in India a success? Same with Jollibee, yet why did Tesco succeed in Great Britain but fail in the U.S?
JCB entered the Indian market in 1979 via a joint venture with Escorts. The decision to enter via a joint venture arrangement was prompted by high tariff barriers that made JCB’s traditional strategy of exporting its product to foreign locations difficult. Given that JCB was primarily an exporter and had little experience operating in foreign locations, the joint venture arrangement offered the company a means of serving the Indian market without incurring all the risk involved in setting up a wholly owned operation. Until its joint venture with Escorts, JCB had been exporting its equipment from Great Britain to a number of foreign locations. JCB’s experience in actually operating in India gave it the means to not only establish wholly owned operations there, but also to expand into China via a wholly owned subsidiary. JCB was able to match its global rivals and become one of the major players in the global construction equipment industry. A big part of Jollibee Foods’ success has been the development of market-leading brands across several categories. Jollibee outlets accounted for 49% of the company’s sales, as of September, and that share is slipping as the rest of its brand portfolio–both in the Philippines and abroad–grows faster. In the Philippines the company boasts Chinese fast-food chain Chow King, Red Ribbon bakeries, Mang Inasal grilled chicken outlets, Greenwich pizza parlors and its U.S. chain Burger King franchises. Lovell Sarreal, senior assistant vice president of research at Maybank ATR Kim Eng Securities in Manila, says, “Most competitors have single brands. Having multi-food concepts enables Jollibee to capture a bigger chunk of the dining-out market. For example, a typical customer can eat at Jollibee on Monday, Chow