7-Eleven case analysis

7/23/2019 7-Eleven case analysis

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7-Eleven CaseAnalysis

Group Memebers:

Umesh Kumar

Komal Garg

Harini

Ritika haKarishma !ethi


2/15

"#$ Ho% the &onvenien&e store&on&ept has evolve' in the U!(

)ote*m stores + ,irst 7-Eleven stores %here&ustomers tote'. a%ay the i&e blo&ks

/egan o0ering milk1 brea' an' eggs %hen regular

gro&ery stores %ere &lose' 'uring %eeken's Convenient + open 2or e3ten'e' hours 'uring

%eek'ays$

E3periment + opene' stores 2or 45 hours a 'ay1 7

'ays a %eek$ 6orke' be&ause:

#$ Changing %ork routine + late night an' early mornings&he'ules %ere &ommon

4$ 6orkers staying up late an' getting up earlier nee'e' a&onvenien&e pla&e to shop$


3/15

7-eleven*s mission + Meeting the nee's o2convenience - oriented customers byprovi'ing a broad selection o2 2resh1 high +uality pro'u&ts an' servi&es at everyday fair

prices, speedy transactions and a clean,friendly shopping environment.

Convenien&e stores serve' as sour&es o2

supplementary shopping1 2or pi&king up 'aily +use items that ha' run out$


4/15

!tu&k in a %arp + not gain top o2 min' re&all butstaye' on 2ringes only

Evolution base' on three 'istin&tive 2eatures o2the Ameri&an lan's&ape

#$ !tores separate' by long 'istan&es4$ Congregation &orners be&ame the natural sites

8$!u9&ient spa&e 2or parking as stores lo&ate' in ruralareas

Core elements uni2orm a&ross the &hain

,ran&hise !tores &onstru&te' on 2ree stan'ingspa&e

nstru&tions given on &ategories an' sub-&ategories o2 pro'u&ts by H;

;,Cs playe' mentoring roles


5/15

"4$ s the &on&ept universalamong &ontinents1 in&lu'ing

)ai%an(

Convenien&e !tores 6orl'%i'e

#$!our&e o2 supplementary pur&hases o2 essential itemsthat &oul' be rea'ily &onsume' by shoppers$

4$,ormat o2 the U! easily repli&ate' any%here$ Convenien&e !tores in )ai%an

#$High population


6/15

5$ )raits Con'u&ive to Gro%th

a? )ai%anese &onsumers* obsession %ith imme'ia&yb? Aligne' %ith nee' 2or instant gratiB&ation&? Entrepreneurs 'ra%n to%ar's 2ran&hising mo'el'? =rovi'er o2 lo%-&ost1 tasty an' hygieni& 2oo'

7-Eleven 6orl'%i'e

#$ ,irst store outsi'e the U!

4$ Entere' ne% &ountry every 4 to 8 years through 2ran&hising8$ )ough &ompetition to 'omesti& players5$ Un'erstoo' pulse o2 2oreign &ustomers better than

homegro%n stores

$ Consisten&y in &olor separations o2 signage1 presentation o2

logo et&$D$ !tores outsi'e the U! 5 times o2 stores %ithin the U!


7/15

7-Eleven in )ai%an#$ U=EC*s several pro'u&tion plants in provisions1 'airy1 instant

2oo's1 logisti&s et&

4$ ts subsi'iary1 =C!C1 laun&he' 7-Eleven stores in )ai%an8$ eat %ell lit stores &ontrasting to murky an' 'ark lo&al stores5$ mitation: goo' %orking relation phase o2 mistakes

=C!C retaine' &ontrol

$ Fo&aliation: greater 'e&entraliation high 'ensity lo&ations

appeal to young pro2essionals

lo&al avor + e3tension o2 &onvenien&e

D$ nnovations: rein2or&e' level o2 operations I te&hnology ) !e&tor + i/on

=re or'ering1 'elivery an' pi&k up1 &o0ee1seating

7-mobile


8/15

"8$ Ho% the 7-Eleven in

)ai%an &ompare their&ounterpart in the U!(


9/15

Q 4. Has localization of 7-Eleven inTaian strengthened or ea!ened the

concept of convenience store"

Fo&aliation helpe' 7-Eleven strengthening the&on&ept o2 &onvenien&e stores in )ai%an$ )his %asmainly be&ause:

t helpe' the &onvenien&e stores to be&ome likeretail noma's$

)his helpe' the &ompany in re'u&ing its &apitalouto% an' managerial time spent in monitoringthe operation

t o0ere' greater e3ibility in the &hoi&e o2sites an' store lo&ations an' 2a&ilitates rapi'


10/15

)hough the setup an' the mo'el o2 the 7-Elevenstores in )ai%an %ere those o2 the U!1 but the=!C! ha' taken steps to provi'e lo&aliation bya''ing lo&al avors %hi&h %ere more pre2erre'by the )ai%anese &onsumers$ )hey starte'selling hot mi&ro%ave' pa&kage' 2oo' %hi&h a&onsumer &oul' grab at any time o2 the 'ay$

t move' beyon' selling pa&kage' 2oo' toselling 2resh 2oo's an' pro'u&ts that &oul' be&onsume' imme'iately rather than hel' 2or

sto&k$ )his %ay it in&rease' the &onvenien&e2a&tor$

t also le' to greater 'e&entraliation inoperations be&ause o2 the lee%ay given to the

2ran&hisees in marketing 'e&isions at the store


11/15

Q#. $oes the service di%erentiationo%ered by 7-Eleven in Taian delivercompetitive advantages to the &tore

chain" 'f so, ho"

Les1 the servi&es o0ere' by 7-Eleven stores in )ai%an'oes 'eliver &ompetitive a'vantage to the store &hainbe&ause it is per&eive' as a one stop shop 2or all 'aily

ne&essities along %ith many supplementary servi&es$

)he aim o2 these servi&es is to ensure that the 2oot2allin the store in&reases %hi&h in turn lea's to in&rease'

sales$

)he )ai%anese &onsumers ha' an obsession %ithimme'ia&y1 they 'i' not like to %ait an' hen&e

Convenien&e stores aligne' %ith this nee' 2or instant


12/15

7 Eleven o0ere' a %i'e variety o2 servi&es 2rom 2ast2oo's1 2roen 2oo's1 'rinks1 instant noo'les1 ne%spapers1magaines an' &igarettes to lo&al avours in its stores

) lai' the 2oun'ation 2or i-/on-an e-&ommer&e kiosk

&onne&te' to a &lou' server1 this enable' 7-eleven tobe&ome a 'istribution &hannel o2 'igitie' servi&es$


13/15

Q(. Can the operational 2ormat o2 7-Eleven in )ai%an be e3pan'e' to

other &ountries( 6hy or 6hy not()es.t &oul' possess the potential to e3pan' the operational

2ormat to other &ountries$

!trong in 'istribution net%orks- )ie up %ith establishe'=layers$

A'van&e' )e&hnology Clou' servi&es 1E-&ommer&e1 )?

,inan&ially !trong U=EC resour&es?1 Can a0or' toe3periment$

ot Nust restri&te' to ,MCG ti&keting1 li&ense 2ees1

parking an' spee'ing Bnes1 pay bills?$


14/15

*actors a%ecting the e+pansion

#$Cultural

4$Geographi&al

8$E&onomi&al

5$)e&hnologi&al

E+ample of cultural di%erence. & /01

-,ast 2oo' an' pasta1 /ulk buy1 o night market$

-=opulation 'ensity : 4$D$s km1 horiontalproperty oning$

-;pen hours : @arie'$


15/15

2.Target 3opulation1)ai%an1 House%ivespri&e sensitive?

instea' target the urban young pro2essionals$ &tore design1 U!: 'esigne' 2or supplementary shopping$

.&tore size ,ormat 45OO-8OOOmts @! 7OO mts$

5.6ocation &ity &enters1 high 'ensity populations @! %i'eareas1 &orner shops1 lo% 'ensity population1 Horiontal @s@erti&al oning$

4.3roducts ,o&us on More lo&alie' : Ptea egg1baoi12antuanP$

Technological onstraints A'aptability to servi&es similar likekiosk an' government regulations 2or servi&es like i-&ash1 7tele&om$ !trong ) an' &lou' serverui&k one stop solution?$

&ervice 'nnovations -/on1 %iB a&&ess point1 phone &ar're&harge1 tele&om &o0ee1 sitting areas1 )a3i servi&es$

&ervices: =re-or'ering 1

7-Eleven case analysis

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