...1 i CASE STUDY ~ SEVEN-ELEVEN JAPAN CO. Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974. The company was first listed on the Tokyo Stock Exchange in October 1979. In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing SevenEleven in the United States. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2003. During that period, the number of stores increased from 2,299 to 10,303; annual sales increased from 386 billion to 2,343 billion yen; and net income increased from 9 billion to 91.5 billion yen. Additionally, the company's return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan's largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 3.6 billion that year, averaging almost 30 visits to a SevenEleven annually for every person in Japan. COMPANY HISTORY AND PROFILE Both Ito-Yokado and Seven-Eleven Japan were founded by Masatoshi Ito. He started his retail empire after World . War II, when he joined his mother and elder brother and began to work in a small clothing store in Tokyo. By 1960 he was in sole control, and the single store had grown into a $3 million company. After a trip to the United States in 1961, Ito became convinced that superstores...
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...pursue an opportunity and to make a profit (Scarborough, 2012). 7-Eleven is a very successful brand and franchise that is known worldwide. As a frequent patron of this established, an opportunity has been identified to directly compete with 7-Eleven. As a competitor in the convenience store market the establishment would be called G’s Stop N’ Go. As a direct competitor, research is necessary to understand the strengths and weaknesses of 7-Eleven to be able to compete and make effective decisions. From state to state and city to city 7-Eleven’s can be found everywhere are very visible and known. But based on the companies SWOT analysis a weakness that has been identified was the hacking of ATM machines that negatively impacted consumers’ loyalty (7-Eleven, Inc., 2013). FBI has investigated the case and stated that a Citibank server that processes ATM withdrawals at 7-Eleven convenience stores had been breached. ATMs hackings at 7-Eleven stores reflects the company's weak application security system (7-Eleven, Inc., 2013). To take advantage of this weakness, G’s Stop N’ Go would have industry proven application security system that are secure and up-to-date. That way customers can make purchases and use the ATM to make transaction without fear of hacking. Next G’s Stop N’ Go must have a wide selection of products at different price points to serve a wide range of customers. Just like how a consumer can go into an 7-Eleven and make a quick purchase of what he or she is looking for...
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...Seven-Eleven Japan1 Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in May 1974. The company was first listed on the Tokyo Stock Exchange in October 1979. In 2004 it was owned by the Ito-Yokado group, which also managed a chain of supermarkets in Japan and owned a majority share in Southland, the company managing 7-Eleven in the United States. On September 1, 2005, Seven & I Holdings Co., Ltd., was established as the holding company for Seven-Eleven Japan, Ito-Yokado, and Denny’s Japan. Seven-Eleven Japan realized a phenomenal growth between the years of 1985 and 2007. During that period, the number of stores increased from 2,299 to 12,034, annual sales increased from 386 billion to 2,574 billion yen; and net income increased from 9 billion to 91.5 billion yen. Additionally, the company’s return on equity (ROE) averaged around 14 percent between 2000 and 2004. In 2004, Seven-Eleven Japan represented Japan’s largest retailer in terms of operating income and number of stores. Customer visits to Seven-Eleven outlets totaled 4.1 billion in 2007, averaging almost 35 visits to a Seven-Eleven annually for every person in Japan. Company History and Profile Both Ito-Yokado and Seven-Eleven Japan were founded by Masatoshi Ito. He started his retail empire after World War II, when he joined his mother and elder brother and began to work in a small clothing store in Tokyo. By 1960 he was in sole control, and the single store had grown into a $3 million company...
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................................................................................................................................... 5 c) Core Competencies and Strategic Advantages ......................................................................... 6 3. Target Market …................................................................................................................................... 6 a) Who is our target market? ….................................................................................................... 6 b) Market Segments …................................................................................................................. 7 c) Demographics …...................................................................................................................... 7 4. Marketing Strategies …........................................................................................................................ a) Product...
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...SEVEN-ELEVEN JAPAN CO. CASE ANALYSIS What is the future outlook for Seven Eleven Stores in USA? Seven-Eleven is part of an international chain of convenient stores. 7-Eleven, primarily operating as a franchise, is the world's largest operator, franchisor and licensor of convenience stores, with more than 46,000 outlets. The Seven-Eleven business model consists of five key elements: * A differentiated merchandising strategy; * Utilization of 7-Eleven’s retail information system & Managed distribution; * Providing a convenient shopping environment; and * A unique franchise model. Let us have a brief look over 7-Eleven stores in US and Japan: Seven-Eleven Japan: * High density market presence with 50-60 stores supported by distribution centre. * Limited geographical presence * Emphasized regional merchandizing * Processed and fast foods contributed to most of its sales * Products like food and beverages, magazines and consumer items such as soaps and detergents * Services offered like payment of electricity bills, telephone, gas bills, meal delivery services, 7 dream e-commerce, electronic money offering and many * Advanced information technology helped store to analyse store data every day morning and helps in having valuable shelf life * Information system installed in every outlet and linked to HQ, Suppliers and 7-eleven distribution centres. Uses ISDN to collect, process and feedback POS data quickly * Delivery frequency...
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...Netherlands. In regards to pharmaceuticals, they are not as prominently used as they are in the US, however the need for general over-the-counter medications are still there. Products like Paracetamol, Advil and Condoms are commonly bought regularly by the Dutch consumer. Therefore, the general pharmacy needs will be sold alongside general health care products like tooth-paste, deodorant, tooth brushes, shampoo and conditioner etc. This assortment of merchandise meets the needs of the average Dutch consumer on a somewhat daily bases. The combination of food, snacks and general health care is rare to find in the Netherlands, giving us a competitive edge. Dutch people are known to be very simplistic, meaning it is important for the 7-Eleven to be quick, easy and necessary for the locals . Dutch...
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...7-ELEVEN HOW TO TRUN THE SITUATION AROUND In April, 2011. Allen Zhang, the 7-eleven’s Chief Operator of Eastern Market in China, was standing in front of the window of his office. He was called into deep thought by the dilemma facing the company. On the video conferencing just held, headquarter in Taiwan was very dissatisfied with the poor performance of the branch office in Shanghai, which runs counter to its expectations. Allen looked at the crowded street. He found that the only 7-eleven convenience store on the street was besieged by two FamilyMart stores that were filled with customers. He couldn’t help wondering: What’s wrong with the company’s strategy that was so successful in such overseas markets as Japan, Taiwan, and US, but failed the competition in Shanghai? What contributes to the competitor’s success? Is it because the voluntary chain style that FmailyMart adopts is superior than the regular chain style that 7-eleven adopts in Shanghai? If 7-eleven were to open its market by changing the regular chain style to voluntary chain style, would it turn the situation around or would it evoke new problems? Obsessed with all of these questions, Allen realized that it is time for some changes for the company to achieve its initial goals and as the big market share as possible in this promising market. CONTEXT THE CVS (CONVENIENT STORE) INDUSTRY The prosperity of the convenient stores is because supermarkets are almost all of large scales and in the suburbs...
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...Cornela Maria Rampengan 7- Eleven in Taiwan 7-Eleven Inc. was the world’s largest operator, franchisor and licensor of convenience stores, with annual sales of more than $ 62 billion. Its company become a pioneer the concept of convenience stores in the US, where it had 7.200 stores. This concept was also expanded to several countries, which are North America, Europe, and Asia and the largest store located in Asia. 7- Eleven was founded in 1927 as the Southland Ice Company in Dallas, Texas. It started by selling ice blocks and the first stores were known as “ Tote’m stores because customers “ toted” away the ice blocks. Tote’m changed its name to 7-Eleven in 1946, when the stores were open from 7 A.M. to 11 P.M. daily and during 1950s, 7-Eleven started moving beyond the Dallas market into other regions of Texas and also into Florida and Washington DC. By time being, they stay open 24 hours started by accident in 1962, at a store in Austin, Texas located close to the university campus. Mission of 7-Eleven : “ Meeting the needs of convenience-oriented customers by providing a broad selection of fresh, high quality products and services at everyday prices, speedy transactions and a clean, friendly shopping environment.” The concept of convenience stores that developed by 7-eleven was shaping the way American shopped, which is Americans shopped at big box stores and supermarkets for all their weekly or monthly supplies. Basically, three distinctive features of the American...
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...7 – Eleven | | External analysisTeam members: Number of characters (including spaces, footnotes, end notes and text boxes): _22,999_Signatures of all the participating group/team members:_____________________________ __________________________________________________________ __________________________________________________________ ____________________________ | | Project no.: 1 Class and group number: Table of Contents Introduction 2 INTRODUCING 7-ELEVEN 3 Marketing mix 3 Product 3 Place 4 Price & Promotion 4 People 4 Process 4 Physical environment 4 Mission 5 Vision 5 Values 5 Objectives 6 Macro environment – PESTLE analysis 6 Political 7 Economical 7 Socio cultural 7 Technological 7 Environmental 8 Legal 8 Porters five forces analysis 8 Competitive analysis 11 Conclusion 12 List of sources: 13 Introduction The retail industry in Denmark had a very good performance in 2012, after continued stagnation over the review period. In general, the retail industry is sensitive to any economic fluctuations and therefore it was very much affected by the financial crisis which occurred 3 years ago. The crisis “shattered consumer confidence dragging out through 2009-2010.” Last year, in 2012, the reduction in unemployment, growth in incomes and prospects of economic recovery all “contributed to growing value sales in the majority of retail channels. “ Despite the growth...
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...The Analysis of Strategy Planning in Facilitating Intelligent Shop (I-shop) through Innovative Information Communication Technology Applications Paul T.Y. Tseng, Department of MIS, Tatung University, Taiwan Chen-Yen Yao, Technology and innovation Management, National Chengchi University, Taiwan ABSTRACT This research discusses the strategy of Information Communication Technology (ICT) innovation that applies to traditional convenient store and commercial presence for value creation and business model transformation in experienced economy era. This study aims to promote the ICT facilitating the sales of retail service industries and physical stores. Adopting the information technology in the shop and store where the end users do the physical trade. It provides the brand-new consuming experience for consumers, improves consumption quality, and stimulates consumption will and expending of the business. We conduct case study approach to analyze the purpose to implement innovation of intelligence shop and the design of the ICT applications, and how to adopt the ICT in the site of commerce presentation at present. Then sum up the innovative strategy applies the ICT to Intelligent Shop (I-shop).These can help retail business the basic decision of business strategy and business plan to improve the added value and innovation capability in this information age. Keyword: Intelligent Shop, Service Innovation, Information Communication Technology (ICT) INTRODUCTION In the era that the...
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...Conclusion 5 Recommendations 5 References 6 Introduction 7-Eleven is the world's largest chain of convenience stores group. 7-Eleven has become the common language of international convenience store, shops throughout the United States, Japan, mainland China, Hong Kong, Macau, South Korea, Singapore, Thailand, Taiwan, Malaysia, the Philippines, Sweden, Mexico, Panama, Norway, Canada, Australia, Indonesia, Denmark and other countries and regions. The current global store the number of over 40,000 is the world's largest chain system. Stores the largest number of countries are Japan, the highest branch density of Taiwan.7-Eleven is a member of Dairy Farm International, operating under the license from U.S based 7-Eleven Incorporated since 1983. In June 1983, we opened our first store at upper Changi Road in Singapore. And today, we have an extensive network of 550 stores and growing. 7-Eleven is now the store of choice, not just for last minute needs but for a wide ranging lifestyle needs such as exclusive snacks, meals on-the-go, Cash Card top-ups and bill payment services. In addition, we have been at the forefront of the franchise industry in Singapore for more than 27 years. From Jan 2010, one third of our stores are run by franchisees who are dedicated to serving 7-Eleven customers.7-Eleven is the leading convenience store retailer in Singapore that has grown from strength to strength. Through the years, we have...
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...President Chain Store Corporation 2011 CSR Report President Chain Store Corporation 2011 CSR Report www.7-11.com.tw 7-ELEVEN 2011 CSR REPORT Content About This Report h i s re p o r t e n c o m p a s s e s t h e v i e w s a n d strategies of President Chain Store Corp. (PCSC) concerning key issues of sustainability in the retail industry and displays our current results and future plans, thereby providing a channel to communicate with our stakeholders. Meanwhile, we view this report as a strategic means of self-review and –assessment so that all results will produce a rolling multiplier effect, gradually achieving the ultimate goal of a happy enterprise and society. The 2011 Corporate Social Responsibility (CSR) repor t is the first to be issued by the PCSC in accordance with the Global Report Initiative’s thirdgeneration criteria (GRI G3). Its contents are based primarily on data from 2009 to 2010 (from Jan. 1st, 2009 to Dec. 31st, 2010), with B-Level application status and organization boundaries established according to the consolidated-statement principle. The primary scope of the performance presented in the current report is limited to PCSC operations in Taiwan. Data from other subsidiary companies are expected to be included gradually in future reports so as to present more complete information and carry out the verification of report. Content • Reporting Principles The core of this 2011 President Chain Store Corp. CSR report is ”Happiness,” with a...
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...and has no time to go to supermarket everyday and that triggers them to approach the convenient store. With many outlets and easy to access 24/7, 7-Eleven welcomes every customer to get their daily needs. We are providing groceries, snack foods, candies, instant foods, drinks, reading materials, and also services such as prepaid reload and ATM service where customers can fulfill their daily needs even though they don’t have time to shop. All of our 1,497 stores are open 24 hours everyday out of 7 days in a week to assure that customers can get anything they need anytime and anywhere. We create a simple and convenient as an adjustment toward people’s lifestyle, which is very mobile and active. With our motto, 7-Eleven will Always There For You. Company Description History Founded in 1927, 7-Eleven is known as The Southland Ice Company in Dallas, Texas whom the founder is J. C. Thompson. It was started as an ice vendor which eventually began offering milk, bread and eggs on Sundays and evenings when grocery stores were closed. The idea managed to satisfy the customer and also increased sales of the company. (7-Eleven Malaysia Sdn. Bhd., 2010) The first company’s convenient outlets were known as Tote’m stores which named since customers ‘toted’ away their purchases. It became 7-Eleven when the stores extended its business hours from 7 a.m. until 11 p.m. and open seven days a week. The company’s corporate name was changed from The Southland Corporation to...
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...7-Eleven case study Stock rotation in convenience stores Reference Code: BPCS84 Publication Date: 01/05 www.datamonitor.com Datamonitor Europe Charles House 108-110 Finchley Road London NW3 5JJ United Kingdom t: +44 20 7675 7000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Germany Kastor & Pollux Platz der Einheit 1 60327 Frankfurt Deutschland t: +49 69 9750 3119 f: +49 69 9750 3320 e: deinfo@datamonitor.com Datamonitor Asia Pacific Room 2413-18, 24/F Shui On Centre 6-8 Harbour Road Hong Kong t: +852 2520 1177 f: +852 2520 1165 e: hkinfo@datamonitor.com Datamonitor Japan Aoyama Palacio Tower 11F 3-6-7 Kita Aoyama Minato-ku Tokyo 107 0061 Japan t: +813 5778 7532 f: +813 5778 7537 e: jpinfo@datamonitor.com ABOUT DATAMONITOR Datamonitor plc is a premium business information company specializing in industry analysis. We help our clients, 5000 of the world’s leading companies, to address complex strategic issues. Through our proprietary databases and wealth of expertise, we provide clients with unbiased expert analysis and in-depth forecasts for six industry sectors: Automotive, Consumer Markets, Energy, Financial Services, Healthcare, Technology. Datamonitor maintains its headquarters in London and has regional offices in New York, Frankfurt, Hong Kong and Japan. All Rights Reserved. No part of this publication may be reproduced...
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...1. Describe the type of supply chain used by 7-Eleven. For example are they agile, adaptable, aligned? 7-Eleven is the largest operator and franchisor of convenience stores in the world, with more than 46,000 outlets and currently selling 500 million litres of petrol, $500 million of merchandise and serving almost 80 million customers worldwide. With figures like this, you have to wonder how they did it? Aside from the fact that the store operates 24 hours a day, 365 days a year and hence adhere to the ‘convenience store’ label, 7-Eleven addressed some key aspects that often other organisations overlook. “We must be open to change to remain successful,” said7-Eleven CEO Joe DePinto (and recent “Undercover Boss”) at the conclusion of his Tuesday morning keynote address at the IFA 2011 Annual Convention. Noticing a need to change, 7-Eleven turned their whole outlook around, focusing on the franchisees instead of focusing on the headquarters of the organisation. After all, the franchisees are the ones that work at ground level with customers on a day to day basis, establishing relationships and recognising customer needs. 7-Elevens response to a changing marketplace yielded significant benefits and further more allowed the implementation of technology and supply chain integration to increase functionality. An efficient supply chain maximises planning, organising and helps distribute a flow of the organisations product to end customers. This is done through implementing innovative...
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