7-Eleven Case

Analysis
Group Memebers:
Umesh Kumar
Komal Garg
Harini
Ritika Jha
Karishma Sethi

Q1. How the convenience store

concept has evolved in the US?
Totem stores First 7-Eleven stores where

customers toted away the ice blocks

Began offering milk, bread and eggs when regular
grocery stores were closed during weekends
Convenient open for extended hours during
weekdays.
Experiment opened stores for 24 hours a day, 7
days a week.
Worked because:

1.
2.

Changing work routine late night and early morning

schedules were common
Workers staying up late and getting up earlier needed a
convenience place to shop.

 7-elevens mission Meeting the needs of

convenience - oriented customers by

providing a broad selection of fresh, high
quality products and services at everyday fair
prices, speedy transactions and a clean,
friendly shopping environment.

Convenience stores served as sources of

supplementary shopping, for picking up daily

use items that had run out.

 Stuck in a warp not gain top of mind recall but

stayed on fringes only

Evolution based on three distinctive features of
the American landscape

1.
2.
3.

Stores separated by long distances

Congregation corners became the natural sites
Sufficient space for parking as stores located in rural
areas

Core elements uniform across the chain

Franchise Stores constructed on free standing
space
Instructions given on categories and subcategories of products by HO
OFCs played mentoring roles

Q2. Is the concept universal

among continents, including
Taiwan?
Convenience Stores Worldwide
1.Source of supplementary purchases of essential items

that could be readily consumed by shoppers.

2.Format of the US easily replicated anywhere.
Convenience Stores in Taiwan
1.High population Density natural platform for the
growth
2.Pioneered by PCSC in May, 1979
3.Evolution
a)Vertical Zoning always people entering or exiting the
high-rise.
b)Footfalls are crucial opportunities for making profit.

4. Traits Conducive to Growth

a)
b)
c)
d)

Taiwanese consumers obsession with immediacy

Aligned with need for instant gratification
Entrepreneurs drawn towards franchising model
Provider of low-cost, tasty and hygienic food

7-Eleven Worldwide

1.
2.
3.
4.

First store outside the US

5.

Consistency in color separations of signage, presentation of

logo etc.

6.

Entered new country every 2 to 3 years through franchising

Tough competition to domestic players
Understood pulse of foreign customers better than
homegrown stores

Stores outside the US 4 times of stores within the US

 7-Eleven in Taiwan
1.
2.
3.
4.

UPECs several production plants in provisions, dairy, instant

foods, logistics etc
Its subsidiary, PCSC, launched 7-Eleven stores in Taiwan
Neat well lit stores contrasting to murky and dark local stores
Imitation: good working relation
phase of mistakes

5.

PCSC retained control

Localization: greater decentralization
high density locations
appeal to young professionals
local flavor extension of convenience

6.

Innovations: reinforced level of operations & technology

IT Sector iBon
Pre ordering, delivery and pick up, coffee,
seating
7-mobile

Q3. How the 7-Eleven in

Taiwan compare their
counterpart in the US?

Q 4. Has localization of 7-Eleven in

Taiwan strengthened or weakened the
concept of convenience store?
Localization helped 7-Eleven strengthening the
concept of convenience stores in Taiwan. This was
mainly because:
It helped the convenience stores to become like
retail nomads.
This helped the company in reducing its capital
outflow and managerial time spent in monitoring
the operation
It offered greater flexibility inthe choice of
sitesand store locations and facilitates rapid

 Though the setup and the model of the 7-Eleven

stores in Taiwan were those of the US, but the
PSCS had taken steps to provide localization by
adding local flavors which were more preferred
by the Taiwanese consumers. They started
selling hot microwaved packaged food which a
consumer could grab at any time of the day.
It moved beyond selling packaged food to
selling fresh foods; and products that could be
consumed immediately rather than held for
stock. This way it increased the convenience
factor.
It also led to greater decentralization in
operations because of the leeway given to the
franchisees in marketing decisions at the store

Q5. Does the service differentiation

offered by 7-Eleven in Taiwan deliver
competitive advantages to the Store
chain? If so, how?

Yes, the services offered by 7-Eleven stores in Taiwan

does deliver competitive advantage tothe store chain
because it is perceived as a one stop shop for all daily
necessities along with many supplementary services.

The aim of these services is to ensure that the footfall

in the store increases which in turn leads to increased
sales.

The Taiwanese consumers had an obsession with

immediacy, they did not like to wait and hence
Convenience stores aligned with this need for instant

 7 Eleven offered a wide variety of services from fast

foods, frozen foods, drinks, instant noodles, newspapers,

magazines and cigarettes to local flavours in its stores
IT laid the foundation for i-Bon-an e-commerce kiosk
connected to a cloud server, this enabled 7-eleven to
become a distribution channel of digitized services.

Q6. Can the operational format of 7Eleven in Taiwan be expanded to

other countries? Why or Why not?
Yes.It could possess the potential to expand the operational
format to other countries.
Strong in distribution networks- Tie up with established
Players.
Advanced Technology ( Cloud services ,E-commerce, IT)

Financially Strong (UPEC resources), Can afford to

experiment.
Not just restricted to FMCG( ticketing, license fees,
parking and speeding fines, pay bills).
Diverse in catering to the services needs .

Factors affecting the expansion:

Example of cultural difference. (VS UK) :

-Open hours : Varied.

1.Cultural
2.Geographical
3.Economical
4.Technological

-Fast food and pasta, Bulk buy, No night market.

-Population density : 255.6.sq km, horizontal
property zoning.

1.(Target Population): Taiwan, Housewives(price sensitive)

instead target the urban young professionals.
(Store design) US: designed for supplementary shopping.
2.Store size : Format 2400-3000mts VS 700 mts.
3.Location : city centers, high density populations VS wide
areas, corner shops, low density population, Horizontal Vs
Vertical zoning.
4.Products : Focus on More localized : "tea egg,baozi,fantuan".

Technological Constraints: Adaptability to services similar like

kiosk and government regulations for services like i-cash, 7
telecom. Strong IT and cloud server(quick one stop solution).
Service Innovations : I-Bon, wifi access point, phone card
recharge, telecom coffee, sitting areas, Taxi services.
Services: Pre-ordering ,Delivery and pickup, Telecom, i -cash.etc.