...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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...7-Eleven in Taiwan Yuko Matsumuro National Chengchi University Abstract Nowadays, convenience stores have become more and more common in Taiwan. If you just look around everywhere, you will soon find there are a lot of convenience stores surrounding your town. Among several convenience store chains, 7-Eleven, or the President Chain Store Corporation, is the most popular one now. The paper focuses on why 7-Eleven is so successful in Taiwan and pursuits what is behind it. At the beginning, to understand the position of 7-Eleven’s parent company Uni-President Enterprise Corporation (UPEC) in Taiwan, and investigate how it influence the success of 7-Eleven. Also, based on the data which showed the consumers’ satisfaction towards 7-Eleven’s service, to consider how 7-Eleven’s service performances are evaluated by consumers and what kinds of management manuals they have. In last, the paper will discuss the influences of 7-Eleven’s special marketing geographical strategy and their advertisement effects on consumers. These information will help us know why 7-Eleven can continue to improve. Why 7-Eleven succeed in Taiwan? Introduction According to the article “Taiwan Convenience Stores 2010”, “In 2009, 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...
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...Introduction 7-Eleven in Taiwan In Taiwan, 7-Eleven is owned by President Chain Store Corporation under Uni-President Enterprises Corporation. The first 7-Eleven convenience store in Taiwan was opened in 1980, however, it was not until 1986 the company began to profit. 7-Eleven is the most popular convenience store in the country; Taiwan is third in the world for number of locations with 4,790 stores on January, 2011. Although the number of 7-Eleven store in Taiwan is fewer than those of the United States and Japan, Taiwan 7-Eleven has one of the highest density of 8.5 km² a store in the world after Macau, Hong Kong and Singapore. History of 7-Eleven 7-Eleven convenience store concept is a pioneer in 1927 in the company office Southland Dallas, Texas. In addition to selling blocks of ice to refrigerate food, also offering milk, bread and eggs. This new business idea turned out to be create satisfied customers thereby increasing sales and is the world's first convenience store. These outlets are not initially open for 24 hours instead of 7 am to 11 pm and then it was that later inspired the name 7-Eleven (from seven to eleven), the first 7-Eleven stores are open 24 hours and then opened in 1962 in the city Austin, Texas. Since then the 7-Eleven operates on a 24-hour official formally followed with the opening of its new store in Las Vegas, Fort Worth and Dallas in the United States in 1963. In 1980, Southland Corporation experiencing financial difficulties and eventually...
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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 Inc is the operator, franchisor and licensor of convenience stores. As an American company, it expanded the global market quickly and successfully, especially in Taiwan. Marketing is key to 7- Eleven’s success. In learning its global corporation’s marketing mix, I will mainly focus on following four parts. First, the company’s marketing strategy in the united state will be discussed. And then 7- Eleven’s market entry strategy in Taiwan will be focused on. Thirdly, marketing mix about 7-Eleven Taiwan will be analyzed deeply and critically. Last, some minor suggestion will be given to make 7-Elevendeveloped better in the further. The marketing strategy in the United States is innovative and unique. A tits initial stage, the decisive factors for this company’s success are that7-Eleven launched an innovative store and service in the United States and then entered into this “Blue Ocean”. As we can see, in 1940s, the concept of convenience store was challenging because shopping in convenience store is new and unfamiliar consumer behaviour for American people. As a store, it sells convenient service more than its product. So this is an innovative marketing segmentation. Moreover, the convenience store can meet the unsatisfied demand in American market. At the second stage, when the store expanded over its original market into other districts in America, the company took the standardization of business format, including the logo, location, store’s layout and merchandising...
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...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 payable. This could indicate that there are increase cash flow retractions but there is no additional information to conclude anything concrete. 6. Based on your analysis of the company and the industry, describe the most significant problems or issues facing 7-Eleven in Taiwan • One of the challenges 7-Eleven in Taiwan faces, is managing brand expectations for each...
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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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...Taiwanese 7-ELEVEn Executive Summary The purpose of this report is to undertake industry scenario analysis of Taiwanese 7-ELEVEn strategy development in terms of chain convenience store industry. Based on the chain convenience store industry’s environment and market situation, I mainly describe 7-ELEVEn’s approach of new promotion strategy, international strategy and financial strategy. Relying on relevant references, I analyse each of them by my professional knowledge. Finally my opinions on their current situation and future development are given in conclusion. 1. Introduction 3 2. Background 4 3. Environment of convenience store in Taiwan 5 3.1 Macro-environment (PESTEL) 5 3.2 Chain convenience store Industry 5 Key competencies 5 Key resources 6 Five forces framework 7 3.3 Competitors 9 4. 7-ELEVEn’s new strategy – city café 9 4.1 Motivation 9 4.2 Action 9 4.3 Result 10 5. International Strategy 11 5.1 Market Selection 11 5.2 Competitive Advantage 11 5.3 Internationalization drivers 12 Government driver 12 Market driver 12 Competitive driver 12 5.4 Entry Mode 12 Timing 12 6. Financial Strategy 13 Stock market 13 Share price 13 7. SWOT Analysis 14 8. Strategic uses by the Art of War 15 8.1 Best plan - Uniting minor enemies to attack main enemies 15 8.2 Normal plan – Cooperating with local big companies 15 8.3 Bad plan – Establishing a new brand 16 9. Conclusion 16 Reference List 17 1. Introduction ...
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...Industry & competitor analysis Define industry: Convenience stores industry So for 7-eleven absolutely it belongs to convenience stores industry. Based on 7-eleven mission, The concept of convenience stores, developed by 7-Eleven, was shaping the way Americans shopped; in turn, American buying behavior and the American landscape were both shaping the identity of convenience stores. As a matter of habit, American shopped at big-box stores and supermarkets for all their weekly or monthly supplies. Convenience stores served as sources for supplementary shopping, for picking up daily-use items that had run out. Convenience stores were thus stuck in a warp. They could not gain top-of-mind recall among American consumers; they seemed destined to stay on the fringes. The concept of convenience stores had evolved in countries outside the United States along the same lines as it had evolved in the United States. Convenience stores served as a source of supplementary purchases of essential items that could be readily consumed by shoppers. The format established in the United States could be replicated in any part of the world. Operators in this industry are retail businesses that primarily sell basic food, beverage and tobacco merchandise in convenient locations that are generally open during extended hours. This industry…. In the not too distant past, every convenience store looked about the same -- 2,400 square feet of packaged consumer items. Today, companies in...
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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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...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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...need to reference our work and be concise.......thank you Introduction Background of seven eleven 7-Eleven was founded by J. C. Thompson in 1927 as The Southland Ice Company in Dallas, Texas. Started as an ice vendor, the company eventually began offering milk, bread and eggs on Sundays and evenings when grocery stores were closed. This new business idea produced satisfied customers and increased sales, spawning the precursor of the modern convenience retail concept. The company's first convenience outlets were known as Tote'm stores since customers "toted" away their purchases, and some even sported genuine Alaskan totem poles in front. In 1946, Tote'm became 7-Eleven to reflect the stores' new, extended hours - 7 a.m. until 11 p.m., seven days a week. The company's corporate name was changed from The Southland Corporation to 7-Eleven, Inc. in 1999. Together with its global licensees, franchisees and affiliates in 16 countries, 7-Eleven operates over 37,000 stores worldwide. The first 7-Eleven store in Malaysia was opened in October 1984, in Jalan Bukit Bintang, Kuala Lumpur. In October 2008, 7-Eleven achieved a milestone opening of its 1,000th store in Bandar Sunway, Selangor. It is today the undisputed market leader in convenience store chain landscape in Malaysia. (http://corp.7-eleven.com/AboutUs/History/tabid/75/Default.aspx) Company’s mission and vision Vision 7-11 vision is to be the best...
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...world are based on different market conditions and different organizational structure. There are four kinds of structure which Starbucks uses to expand their stores around the world: own self-employed, joint venture, license agreement, authorized to operate. Moreover, they were the first firm which offered stock options to their part-time employees. Starbucks becomes a publicly traded company. (Starbucks Coffee Company, 2009) The Starbucks phenomenon continues in 2000s. Starbucks has more than 15,000 locations across the global. In addition to their excellent coffee and espresso drinks, people also can enjoy Frappuccino ice blended beverages. (Starbucks Coffee Company, 2009) Starbucks in Taiwan President Starbucks Coffee Corporation was established on January 1, 1998 in Taiwan. The United...
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...we are choosing is 7-eleven. It is the world’s largest convenience store chain with more than 53,000 stores in 16 countries, of which more than 10,400 are in North America, and the company has more outlets than any other retailer or food service provider. 7-eleven was founded in 1927 in Dallas, Texas and it pioneered the convenience store concept during its first years of operation as an ice company when its retail outlets began selling milk, bread and eggs as a convenience to guests (7-eleven.com). Back then, in 1927, “Uncle Johnny” Jefferson Green, an enterprising Southland Ice Company employee, began to offer milk, bread and eggs from the ice house. He quickly notice a need to carry these items for customers who were out of these everyday staples. The items has been sold a lot on Sundays and evenings when grocery stores were closed. Realizing the possibilities of Uncle Johnny’s idea to provide customers what they wanted and when they needed it, Joe C. Thompson, Jr., one of the founders and later president and chairman of The Southland Corporation, began selling the product line at other ice-dock locations. At the time, the company had eight ice plants and 21 retail ice docks . Thus convenience retailing was born. More and more customers caught on to this new idea, and the company increased to 60 Southland-owned retail ice docks within a decade . In April 28,1999, the name of the convenience store was changed from The Southland Corporation to 7-eleven, Inc after approval...
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