7-Eleven in Taiwan: Adaptation of Strength: convenience stores to new market Operational strength environments 1( 7)*+e,en Tai-an is the +argest .on,enient stores o%erate an/ ran.hise their usinesses in Tai-an( Student Name: Marketing!roduct Bettina Steinhauser NGX150247 Lee Yean Hong CGA130142 2( 7)*+e,en Tai-an a+e to +o.a+ie its %ro/u.t oere/ Tai Boon Thiam CGA140043 %ro,i/ing a +o.a+ a,our to its .ustomers se++ing %ro/u.ts Timoth Lee Te! "ang CGA13013# i(e( tea eggs antuan aoi et. "ang $a%eng CGA1400&' Marketing!roduct "ong Han Chion CGA1400&5 3( T)11 Tai-an a+e to %ro,i/e +o-).ost tast an/ hgieni. ast)oo/ in ni.he mar!et .om%are/ to street ,en/ors(
)eakness: >%erationa+ -ea!ness 1( 7)11 o%erate its stores main+ in resi/entia+ .ommunities -ithin .it .enters -ith target .ustomer main+ house-i,es( 2( Conormit -ith :S mo/e+ -hi.h might not suit the Tai-an mar!et eg( store s%a.e an/ oo/ se+e.tion( @ar!eting 3( 7)11 %ositione/ in Tai-an as high)en/ .on,enien.e store ut their target .ustomers are %ri.e sensiti,e house-i,es(
"ogisticsOperation 4( 7)11 ran.hise its trans%ortation -here ea.h in/i,i/ua+ /ri,er is res%onsi+e or their o-n ,ehi.+es an/ ensure time+ /e+i,eries(
inan.ia+ an/ organisationa+ -ea!ness 4( 7)11 Tai-an o%ene/ stores simu+taneous+ in the north .entra+ area an/ the south o Tai-an -hi.h -i++ s%rea/ the grou% resour.es thin(
Management 5( 6CSC -as %ioneer in the .on.e%t o .on,enien.e store in Tai-an(
inan.ia+ -ea!ness 5( 7)11 uing %remise rather than renting -hi.h +ea/ to high u%ront .ost(
#nternational E$pansion strateg% Management '( 7)*+e,en Tai-an +e,erage on 7)*+e,en n.8s 9:S; %ast e<%erien.e an/ usiness mo/e+ in un/erstan/ing an/ o%erate the mar!et etter(
*lo+al Strateg% A++ the 7)* o++o-e/ the Ameri.an ormat
&ranchising "egal 7( 7)*+e,en Tai-an a+e to ran.hise its .on,enient stores ) Less .a%ita+ e<%en/iture 9eg( no nee/ to u %ro%ert or store o%enings; an/ +ess manageria+ time s%ent in monitoring the o%erations( This -i++ resu+t in r a%i/ gro-th an/ greater eS ? 6>S ? Gra%hi. >r/ering Termina+ ? @oi+e >=.e %+atorm; to im%ro,e the o%eration %ro.ess( !h%sical Operations (eputational Strength 10( Setting o 7)11 .on,enien.e store -ith right neat an/ -e++)+it en,ironment ma/e an im%a.t .om%are/ to +o.a+ stores
-hi.h -ere .ram%e/ must an/ /ar! a+e to enhan.e .ustomer e<%erien.e( Marketing (, #nnovational Strength 11( 7)11 esta+ish on 9e).ommer.e !ios! .onne.te/ to a .+ou/ ser,er; a+e to in.rease oota++s into the stores( 12( 7)11 oer seating area or the seniors an/ .hi+/ren ta
Opportunities: Socio-cultural opportunities 1( Tai-an at '1' %ersonsD!m2 has the se.on/ highest %o%u+ation /ensit in the -or+/( 2( Tai-an .onsumers are osesse/ -ith imme/ia.( 3( Change/ -or! routine o -or!ing %o%u+ation resu+ting +ess time to regu+ar sho%%ing /ue to +ong -or!ing hours( 4( Tai-anese %eo%+e are in.+ine/ to .oee either .o+/ or hot -eather) 530000 .u%s so+/ e,er/a at .on,enien.e stores( 5( *ntran.e into Shanghai China ) oth ha,e simi+ar so.io).u+tura+ a.!groun/(
&inancial Strength 15( Gro-th in re,enue an/ %rot or 7)*+e,en Tai-an 9+argest retai+er -ith re,enue NT10(& i++ion; resu+ts rom smooth e<%ansion on the usiness( SO Strategies: )O Strategies: ./ S.0 1 O2 - Market (esearch 3&unctional -level' To 1( 9"1 "4; I 9>3 >15; ) >%erations Strateg .on/u.t urther stu/ies on the -or! routine %attern o the 9Business)+e,e+; ) To intensi mar!eting or on+ine
-or!ing %o%u+ation to .a%ture their %ur.hase o %ro/u.ts in 7) *+e,en( 2( S15 I 9>1 >' >14; ) @ar!eting Strateg 9un.tiona+)+e,e+; To s%en/ a,ai+a+e un/s rom retaine/ earnings to /e,e+o% urther mar!eting strategies to .a%ture more . onsumers to s%en/ their mone in %ur.hasing %ro/u.sts rom 7)*+e,en( 3( S15 I >15 ) >%erations Strateg 9un.tiona+)+e,e+; To rein,estment retaine/ earnings in T in,estment to su%%ort the uture o%erations in a..or/an.e to te.hno+ogi.a+ .hanges 4( S13 I >5) $i,ersi.ation Strateg 9Business)+e,e+; To /u%+i.ate its e2 S& I >4 ) $i,ersi.ation Strateg 9Business) +e,e+; :nre+ate/ $i,ersi.ation) Setu% 7)*+e,en !ios! oering *.onomi.a+ o%%ortunities ast an/ resh oo/ that .an e.onsume/ imme/iate+( '( Tai-an has +o- ination rate an/ high '( S1 I 9>13 >10; ) Coo%erati,e Strateg 9usiness)+e,e+; gro-th rates 9one o Asia8s e.onomi. Aggresi,e+ i/entiing suita+e entre%reneurs to ran.hise its tigers;( stores to them 7( Eetai+ tra/e in Tai-an -as ,a+ue/ at 7( 9S1 S' S15 S7; I >5 ) nternationa+ Strateg 9usiness 11'(&5 i++ion in 2010 914F o G$6;( )+e,e+; To enter into o,erseas mar!et i(e( Shanghai China &( Tai-anese entre%reneurs are in.+ine/ an/ other %otentia+ .ountries( to the ran.hising mo/e+( &( 9S11 S12 S13 S14; I >12 ) @ar!eting Strateg #( >er +o-).ost tast an/ hgeni. oo/ 9un.tiona+ )+e,e+; Targeting /ierent segments o .om%are/ to .urrent street ,en/ors -ho .ustomers other than those that a+rea/ ha,e een oer not entire+ hgeni. oo/( i/entie/( 6o+iti.a+ o%%ortunities 10( Tai-an go,ernments stea/
/e+i,er rom nearest a,ai+a+e or routines( .ustomers8 .on,enien.e /ue to stores their -or! 2( "1 I >2 ) >%erations Strateg 9Business)+e,e+; ) nstea/ o targeting the .urrent sites to o%en 7) *+e,en stores at sites -ith higher oota++s or .on,enien.e( 3( "5 I 9>5 >&; ) inan.ia+ Strateg 9Business) +e,e+; ) ran.hise its stores to entre%reneurs instea/ o setting u% ne- %remises an/ oer .a%ita+ nan.ing to these entre%reneurs to en.ourage setting u% o more ne- stores( 4( 9"1 "2; I >12 ) @ar!eting an/ 6ri.ing Strateg 9Business)+e,e+; To .ome u% -ith nemar!eting strategies to .a%ture the oung uran %roesiona+s(
+iera+iation o the e.onom ) he+%e/ he+/ /o-n %ri.es( $emogra%hi.a+ o%%ortunities 11( High /ensit o oota++s in the streets o Tai-an( 12( Young uran %roessiona+s -ho are +ess %ri.e sensiti,e(
$emogra%hi.a+ J 13( Ee+ati,e+ oung %o%u+ation 973(4F age/ 15)'4; 4u%er !ower the are not %ri.e sensiti,e s-it.hing %o-er is high 6hsi.a+ en,ironment o%%ortunities 14( Kerti.a+ oning 9high rise ui+/ings; resu+t in a o- o %otentia+ .ustomers 24D7( Te.hno+ogi.a+ o%%ortunities 15( >%%ortunit in the ourgeoning inormation te.hno+og 9T; se.tor( Barrier to entries o%%ortunities 1'( 7)*+e,en ha/ the +argest .on,enient stores in Tai-an at 4750( 5ompetitive rivalr% The street ,en/ors are not hgieni. New Entrant Limite/ +an/ or store +o.ations /ues to Tai-ans %hsi.a+ .on/itions +imits neentrants .a%ai+it to enter the mar!et
Threats Com%etiti,e ri,a+r threats 1( Highest /ensit o .on,enien.e stores in the -or+/ ) ea.h store is +o.ate/ a%%ro;( Sustitute threats 3( Com%etition -ith %resen.e rom a+most a++ maMor g+oa+ retai+ers in Tai-an 9eg Carreour 6ia Hut Staru.!s @.$ona+/s;( 4( Street ,en/ors -ho oer +o-).ost an/ tast oo/( Buers threats 5( Customers are sensiti,e to %ri.es 9eg( house-ies;( Ne- entrant threats '( S.ar.it o reestan/ing sites +imite/ o%%%ortunities to ui+/ ne- stores rom the groun/ u%( 7(Tai-anese mar!et -as sma++ an/ una+e to ui+/ s.a+e rom a sing+e usiness(
ST Strategies: 1( S15 I 9T1 T2 T'; ) 9A.uisition strateg; A.uire .om%etitorsO to gain m ar!et shares an/ re/u.e ri,a+r using .om%an generate/ re,enue an/ %rot( Choosing the right .om%etitors to a.uire an/ atta.! the remaining .om%etitors using other strateg( 2( S1 I T3 S& I T5 ) Coo%erati,e Strateg 9Cor%orate)+e,e+; ) Strategi. a++ian.e on %ro.urementO u+! %ur.hase o su%%+ies in.rease the e=.ien. o the e.onomies o s.a+e .reate .ost argaining %o-er o uers .ost +ea/ershi% 3( S3 I T4 ) @ar!eting Strateg 9Business)+e,e+;) @ar!etingD6romotion on hea+thier oo/ 4( S13 I T5 ) @ar!eting Strateg 9Business)+e,e+; ) @ar!etingD6romotion on /is.ount or reate or using the iCash to %ur.hase rom 7)11 5( S# I T7 ) $i,ersi.ation Strateg 9Business)Le,e+; ) *sta+ish %+atorm an/ enter e).ommer.e mar!et( '( S13 I T3 ) @ar!eting Strateg 9Business)+e,e+; Le,erage on i).ash .ar/ a/,antage to .o++aorate -ith .om%etitors a//ing a//itiona+ re.ei,ing termina+s 9su.h as Carreour 6ia Hut an/ other +arge ran.hises; o the i ).ash .ar/( Ho-e,er %ro,i/e a//e/ enets or usage at 7)e+e,en to maintain attra.ti,eness(
)T Strategies: 1( 9"1 "3; I T5 ) @ar!eting Strateg 9Business) +e,e+; ) @ar!etingD6romotion on /is.ount or reate or using the iCash to %ur.hase rom 7)11 2( "2 I T' ) A.uire .om%etitors 9A.uisition strateg; ) that has a+rea/ set oot in Tai-an -ith strong %resen.e an/ the suita+e store s%a.e to o,er.ome una,ai+ai+it o suita+e D .on,enient ne- stores 3( "4 I T5 "5 I T' ) Coo%erati,e Strateg 9Business)+e,e+; ) Co++aoration -ith maMor %etro+ stations to rent ne- store s%a.e rather than u ne- store re/u.ing .a%ita+ e<%en/iture an/ una,ai+ai+it o suita+e D .on,enient ne- stores 4( "5 I T' ) >%eration Strateg 9Business)+e,e+; ) *<%ansion renting store s%a.e rather than u ne- store re/u.ing .a%ita+ e<%en/iture an/ una,ai+ai+it o suita+e D .on,enient ne- stores
