...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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...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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...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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...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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...1. A convenience store chain attempts to be responsive and provide customers what they need, when they need it, where they need it. What are some different ways that a convenience store supply chain can be responsive? What are some risks in each case? Convenience store supply chains can be responsive by doing several things right. Strategic locations for stores, rapid replenishment, technology deployment, buying trend research, responsive suppliers, and vertical integration are some key areas convenience stores can focus on. In Seven-Eleven’s case, they are not trying to fill the entire map with stores. Rather, they seek out additional demand in proximity of where other stores already exist. By clustering their locations together, they can distribute products more efficiently, aiding in rapid replenishment. Having a better understanding of customers buying trends allows each store to stock the appropriate SKU’s. Keeping track of buying trends will allow Seven-Eleven to respond to changes in demand of certain products and be more responsive to the demand shifts as they occur. Vertical integration leads to a quick response by shortening the manufacturing cycle of the products they sell. It aids in rapid response by linking the retailing aspect and manufacturing operations as a way to quickly respond to changing demand. 2. Seven-Eleven’s supply chain strategy in Japan can be described as attempting to micro-match supply and demand using rapid replenishment. What are...
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...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 industrial environment changes very rapidly, innovation has become the most important success factor for business survival. But with the advancement of science and technology, especially...
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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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...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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...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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...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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...7-Eleven in Taiwan: Adaptation of convenient stores to new market environments – CASE – 1. How has the convenience-store concept evolved in the United States? The convenience store concept began when an enterprising employee of one of Tote’ms stores (now 7-Eleven), began offering milk, bread and eggs on Sundays. Customers found the service very convenient, thus the stores started opening for extended hours (from 7 am to 11pm) and therefore the name changed to 7-Eleven. In 1962, the stores started opening 24 hours 7 days a week, and this became increasingly popular due to the new working schedules of Americans. More than 10 million people in the U.S. were awake at 3 am, 7 million of whom were employed in some kind of work. This new American work style needed exactly what 7-Eleven was offering: a convenient store open at all times, offering fresh-high quality products and services at everyday fair prices, speedy transactions and a clean environment. 2. Is the concept universal across countries, including Taiwan? The concept of convenience stores follows similar lines in different countries outside the United States. In 1969, 7-Eleven opened its first international store and from them on, the company followed a successful global expansion that seemed to follow positive trends despite the local competition. Wherever a franchisee opened a 7-Eleven store, they had to follow some norms that the Americans found to be very important in representing its brand like the logo...
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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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................................................................................................................................... 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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...The Strengths Weaknesses Opportunities and Threats of Allensburg’s Food and Gas Axia College of University of Phoenix Allensburg’s Food and Gas was the business model that was focused on. This model built around a convenient store gas station with a prime location in a growing town. They would offer a variety of products beyond just gasoline such as organic produce and even a deli for customersto get a quick sandwich on the go. The strengths of the business model are many and significant. The biggest strength is that the model of the business and the business itself are well researched and prepared. The manager himself has a history of upward responsibility and knowledge of the business with his employment history. Having this experience with like organizations will provide a good base of knowledge for helping a new business succeed. The model itself seems to be well researched with the demographics of the surrounding area and the location of the next closest gasoline competitor being a solid positive to the business model. The products and services that are being offered are items that are always in demand and the location of the business will serve as positive and possibly a major reason for success. The last strength lies in the niche that this gas station should end up filling. Depending on the hours of operation of the business, and of the competitors around it, the deli attached to the convenient store stands the chance to be a true diamond in the rough. ...
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...Franchise Informational Brochure Process and Basic Information Copyright © 7-Eleven Inc. 2012. All rights reserved. This information is not an offer to sell a franchise. An offer can only be made in applicable states with authorized documentation. Our Franchise Disclosure Document (FDD) will disclose all the material facts about a 7-Eleven franchise. 7-Eleven Inc. One Arts Plaza; 1722 Routh Street, Suite 1000; Dallas, Texas 75201. REVISED 10/12 Table of Contents Introduction Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What is franchising with 7-Eleven all about and how do I get started? 2 Financial Preview of the 7-Eleven Franchise System . . . . . . . . . . . . 3 What am I financially responsible for as a Franchisee? Franchisee Qualification Process at a Glance . . . . . . . . . . . . . . . . . . 6 What does the qualification process entail? Franchisee Basic Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . What are the basic qualifications to become a Franchisee? 7 Franchisee Experience Requirements . . . . . . . . . . . . . . . . . . . . . . . . What are the basic experience qualifications to become a Franchisee? 8 Franchisee Financial Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . 9 What are the basic financial qualifications to become a Franchisee? Copyright © 7-Eleven Inc. 2012. All rights reserved. This information is not an offer to sell a franchise...
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