7 eleven competitive analysis model

There are some consumers who are happy to pay a little bit more for convenience and speed of purchase, however other budget-conscious consumers a more price sensitive. While this can also be a weakness, it also provides a strength of stability of income as a downturn in one particular country is unlikely to impact their overall financial results to a significant extent.

7 eleven indonesia case study answers

The company has employed around 45, employees in its retail store chains. In some countries they also have other branded offerings such as Movie Quik in the United States.

7 eleven target market

In addition, a management team is required to recruit, train and monitor the various franchisees, which also adds to the overall cost structure on an operational basis. There are some consumers who are happy to pay a little bit more for convenience and speed of purchase, however other budget-conscious consumers a more price sensitive. The company strengths are that it has earned its name being the largest in dealing with convenience store regarding franchising and licensing. This provides to strengths for the organization — the first being that they can continue to grow the number of outlets throughout the world without having significant capital requirements, as the franchisee is typically responsible for the setup costs of the outlet — and the second advantage being that the stores are run by motivated individuals who have a profit incentive for the store to perform well. Increased product offering In many of the 7-Eleven stores, there would be physical capacity to increase the product range and offering. This has the advantage of attracting more consumers, who are possibly less reliant on the convenience aspect, and are likely to buy from both businesses over time. The stores of the company are being operated almost in eighteen countries and the spread is organized according to per capital basis in these countries. The employee turnover often seen by the company is a sign of its ill management. For example, they could partner with a coffee chain or a sandwich chain and set up a co-branded store — where both stores operate independently but out of the same location. Co-branding locations 7-Eleven could expand their geographic coverage through co-branded outlets with other significant retail offerings. This brand equity translates into customer loyalty and reduced price sensitivity and, therefore, continued stability of revenue streams across its outlets. This is a significant threat to 7-Eleven over time, as they would not have the low cost structure required to compete effectively on a price basis with a major retail chain, such as Walmart for example. It is ideal for university assignments or as a template for a business exercise. Overall brand equity 7-Eleven is generally perceived as the market leader by consumers in the convenience store sector.

Certain issues like that of regularity and the instant availably of the products should be properly encountered so that there should never be any unpleasant situation like product out of stock.

Franchisees Although the overall franchised model is a strength as indicated above, running a large team of franchisees throughout the world is also a weakness. For example, they could partner with a coffee chain or a sandwich chain and set up a co-branded store — where both stores operate independently but out of the same location.

The trend of purchasers is being shifted towards the privately labeled products. Some of the weaknesses is the lack of communication with the customers because of least developed internet or web based facilities.

7 eleven case study analysis

While there is potential to cannibalize sales of existing outlets, much of this concern is passed to the franchisee and does not necessarily affect the parent company. The employee turnover often seen by the company is a sign of its ill management.

7-eleven business strategy
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7 eleven SWOT Analysis