...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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...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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...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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...CASE: SEVEN ELEVEN JAPAN Executive Summary I Executive Summary The goal of this case is to analyze how a firm can be successful by structuring its supply chain to support its supply chain strategy. Once Seven-Eleven Japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support this choice. The case also brings up the question of whether the same approach can work in the United States, especially given the greater distances and lower store density. Table of Contents II I Table of Contents Executive Summary ................................................................................................................. I II List of Abbreviations......................................................................................................... III 1 Seven-Eleven Japan Co........................................................................................................ 1 1.1 History and Profile ........................................................................................................... 1 1.2 Framework of further discussions .................................................................................... 1 2 Discussion ............................................................................................................................ 1 2.1 Supply Chain Responsiveness ..................................................................
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...What Business Model Advantage Differs from Competitive Advantage: A Case Study of 7-Eleven Japan Yuwei Shi, Ph.D. Fisher Graduate School of International Business Monterey Institute of International Studies 460 Pierce Street Monterey, CA 93940 Phone: (831) 647 6682 E-mail: yuwei.shi@miis.edu Keywords: Business model, strategic management, competitive strategy 2 Abstract This paper introduces a business model framework based on a synthesis of a wide array of diverse business model definitions and related arguments. The intention is to make the theory discussions on business model more useful to the design, development and analysis of actual business models. The synthesis follows the mainstream strategic management theories of profit under competition. The business model framework includes four interrelated component models: the exchange model, the organizational model, the resource model, and the financial model, each with its own strategic logics. Together these component models and their strategic logics describe a comprehensive business model, which enables more meaningful strategic analysis. In order to demonstrate the use of this framework, particularly in comparison with the more traditional competitive analysis, this paper also applies the framework to analyzing the business model of 7-Eleven Japan. It states the additional insights drawn from the comparative analyses, and draws implications for the managerial task of business model design...
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...Reviewing the Balance Sheet, the following was noted: 1. As the case mentioned, PSCS changed their strategy and looked at renting premises rather than owning the stores, this is evident as the proportion of fixed assets declined to 26% in 2011 from 33% in 2000. The current assets have increase steadily over the 11 years indicating that PCSC has access more cash than in 2000. 2. The current ratio for PCSC is less than 1; this indicates that the current assets are insufficient to pay off current liabilities and, if needs be, PCSC many have to look to other assets to pay off current liabilities. This is not a healthy situation to be in but is not an indication of bankruptcy. This ratio has dramatically improved over the last 5 years which is a healthy sign. The ratio has been very close to 1 over the last 3 years indicating that the current assets and liabilities are close to equal in value; this is approaching a more healthy position. This figure needs to be understood against the industry and country benchmarks to see if it is aligned to the norm. 3. The Debt to Equity ratio has been increasing over the years, PCSC has obviously been using their equity to finance growth through debt. It is currently sitting at 2 meaning that their total liabilities is twice their equity, this is usually the measure for capital-intensive industries. The largest portion of the liabilities is current liabilities indicating that there is large amounts of short term debt or accounts...
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...Summary 7-Eleven is a famous brand and provide more than 40 thousands convenience stores for the customers in the worldwide and the most important factor is successful performance in Supply Chain Management (SCM). However, 7-Eleven still has been facing a lot of problems which should be sorting them out in order to get more business opportunities. This report focuses on the supply chain management of 7-Eleven and suggests the improvement for potential problem of its whole supply chain system. At first, will introduce the company’s background by collecting data about its current situation and identifies the issues which are supported by SWOT analysis. And through the GAP analyses of the business the key existent issues faced by 7-Eleven. According to those above, the report will finalize the recommendations and implementation methods in order to improve the business and set a benchmark for future development. In the end, although 7-Eleven’s trend is led more convenience stores to satisfy the need of customers, but it still needs to improve its supply chain and operation mode to Commercial global optimization to continue keeping its leading position in the retail market. 7-Eleven Background 7-Eleven is the largest convenience store chain in the world, which has approximately 47,500 stores in 16 countries. The first Australian store was opened in 1977 owned by the Withers/Barlow family which has the license to operate and franchise 7-Eleven stores in Australia from the U.S. 7-Eleven...
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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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...Report on 7-eleven in Taiwan: Adaptation of convenience stores to new market environments Submitted by: Karan pratap-1226114116 Naseer khan-1226114117 Lalit Akhil pillala-1226114119 Sai surya raghava-1226114120 Malavika issar-1226114121 Summary:- The case portrays the expansion of 7-Eleven to Taiwan and the adaptation of the store format by its local franchisee to a new market environment. The core issue in this case is the balance between standardization and localization in business-format franchising across national borders. Keeping only the store logo and the convenience concept that was well-established in the United States, the local franchisee of 7-Eleven in Taiwan re-formatted almost all aspects of the store chain, including its positioning, location, layout, product offerings, etc. In addition, 7-Eleven in Taiwan introduced a wide variety of new services to handle daily chores for its customers, ranging from e-commerce (train or movie tickets), e-payment, mobile communications, and pickup/delivery to taxi services. The local franchisee, President Chain Store Corp. (PCSC), seemed to have struck the right balance between standardization and localization that allowed it to use service differentiation to gain competitive advantages over its rivals. In about three decades, it grew from zero to nearly 5,000 stores in Taiwan with over 50 per cent of the market while expanding its reach to China and Thailand. 7-Eleven Taiwan Case Study Analysis 7-Eleven...
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...7-Eleven Taiwan Case Study Analysis Introduction: 7-Eleven is an American company which is a franchisor and convenience store, 7-Eleven expanded the international market quickly especially in Taiwan. The main factor that made 7-eleven succeed is the marketing strategy and learning the global corporations marketing mix. Taiwan’s four major convenience store chains such as 7-Eleven, Family Mart, Hi-life, and OK operated a total of 9,184 stores around the country, a density of one store per 2,500 people, making Taiwan the densest market in the world in terms of convenience stores.” Among several convenience store chains, 7-Eleven is the most popular one in Taiwan now. Ans 1: 7-Eleven’s main products such as “Drinks, fresh food, snacks, coffees, daily commodities”, all of them comes from UPEC Company or their own 7-Eleven brands. their main products are the “Fresh food and drinks, come from their own brands and we can see 7-Eleven has many kinds of main products than others because of the support of UPEC. “Extended menu offerings have successfully increased the importance of convenience stores foodservice offering. The company derives its share from its convenience stores, under the brand 7-Eleven. At the end of 2009, there were 4,750 outlets,” 7-Eleven may be considered to be the pioneer in introducing convenience stores fast food in Taiwan, and has since constantly innovated with the launch of new products besides, the sale of fresh food items currently accounts for only...
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...blocks of total supply management and a good indicator of the effectiveness of supply chain management (Basu&Wright, 2008) Stock rotation is an innovative inventory management practice, commonly used in retail, especially in food stores such supermarkets and groceries, of moving products with an earlier sell-by date to the front of a shelf and of moving products with a later sell-by date to the back. (Gustafsson et al. 2006). In this assignment, it is going to be analysed how 7-Eleven achieves the performance objectives; cost, dependability, flexibility, speed and quality via innovative inventory management and stock rotation and further compare this using the importance-performance matrix. The author studied industry journals, including a case study of 7-Eleven’s, and emphasised the impact of stock rotation and inventory management on supply chain management. II. Background to 7-Eleven 7-Eleven is the world’s largest operator, franchisor and licensor of convenience stores. 7-Eleven serves its customers principally selling grocery products, alcohol and tobacco as well as gasoline in US stores. Its...
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... Marketing Plan 2013 3IBM1 / Case B Boudewijn De Bondt 500654850 Benjamin Lobatto 500648491 Roel Hoedemakers 500653139 Oskar Van Enst 500524664 Manvir Sandhu 500646521 Nada Barakat 500676948 Bringing convenience to good food. Table of Contents Executive Summary 4 Introduction 5 External Analysis 6 Market Analysis 6 Market needs 6 Market trends 6 Market growth 6 Competitor Analysis 6 Macro Environment 7 Demographics 7 Economic 7 Natural 7 Technological 8 Political 8 Cultural 8 Internal Analysis 8 Current target market 9 Positioning 9 Competitive advantage 9 Marketing mix 10 Place 10 Product 10 Price 11 Promotion 11 Financial Performance 12 SWOT Analysis 13 Confrontation Matrix 15 Segmentation, targeting and positioning 16 Segmentation: 16 Target market: 16 Positioning: 16 Corporate Strategy 17 Objectives 18 Marketing objectives 19 Financial objectives 19 Marketing Mix 19 Product 19 Price 20 Promotion 20 Place 20 Profit & Loss Statement / Budget (3 years) 21 Recommendations to the decision makers 22 Source list 23 Appendices 24 Place 24 Obesity U.S 24 Personal reflection 26 Roel Hoedemakers 26 Boudewijn de Bondt 26 Manvir Sanhu 26 Nada Barakat 26 Oskar van Ernst 26 Executive Summary In 2008 Greencore entered the U.S. market and acquired two major contracts with convenience chain 7-Eleven and Starbucks which gave Greencore...
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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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...CENTER FOR INFORMATION SYSTEMS RESEARCH Sloan School of Management Massachusetts Institute of Technology Cambridge Massachusetts 7-ELEVEN Japan Co., Ltd.: Reinventing the Retail Business Model Kei Nagayama and Peter Weill January 2004 CISR WP No. 338 and MIT Sloan WP No. 4485-04 2004 Massachusetts Institute of Technology. All rights reserved. Research Article: a completed research article drawing on one or more CISR research projects that presents management frameworks, findings and recommendations. Research Summary: a summary of a research project with preliminary findings. Research Briefings: a collection of short executive summaries of key findings from research projects. Case Study: an in-depth description of a firm’s approach to an IT management issue (intended for MBA and executive education). Technical Research Report: a traditional academically rigorous research paper with detailed methodology, analysis, findings and references. About the Center for Information Systems Research CISRMISSION CISR was founded in 1974 and has a strong track record of practice based research on the management of information technology. As we enter the twenty-first century, CISR’s mission is to perform practical empirical research on how firms generate business value from IT. CISR disseminates this research via electronic research...
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...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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