7-Eleven In Taiwan: Adaption Of Convenience Stores To New Market Environments Harvard Case Solution & Analysis

USC-CT FRAMEWORK

U- POTENTIAL PROBLEM AND CHALLENGESS- MOST IMPORTANT PROBLEMS AND CHALLENGES AND OPPORTUNITIESC- POTENTIAL SOLUTIONSC- MOST EFFECTIVE SOLUTIONT- AN EFFECTIVE IMPLEMENTATION PLAN
  1. Balance between Standardization and localization
  2. Standardization of the business format
  3. Focus on adoption
  4. Stores and Service differentiation
  5. Competitive advantage
  6. Density of convenience stores
  7. New market expansion
  8. Imitation of stores
  9. Localization and IT innovation
  10. Late nights and early morning schedules
  11. Three full shifts
  12. Vertical zoning
  13. Consumers’ obsession with immediacy
  14. Increase Advertising budgets
  15. Long distances
  16. Marketing Strategy
  17. E-commerce competition
  18. High prices for new products
  19. Customer satisfaction
  20. Brand building and innovative products.
1. Balance between Standardization and localization (#1)
  1. It is suggested to initiate a value added service
  2. Cost effective strategy
  3. Rent premise from various landlords
  4. Young professional target market
  5. The chain should be separated from one another
C. Rent premise from various landlords

E. The chain should be separated from one another

 

Rationale:

  1. The company should meet the standard area
  2. The chain should be long distance
  3. Increase product portfolio
  4. Reduces high prices for new products
  5. Rent premise instead of buy premises

 

 

  • The 7-eleven Taiwan should meet the standard size of 2400 to 3000 square meters
  • Buy premises increase the high upfront costs, so initiate rent premises
  • Set up stores in high density locations such as a railway station.
  • The Taiwanese prefers low cost products
  • Product portfolio attracts more customers

 

2. Localization and IT innovation (#10)
  1. Exploit innovation of local needs
  2. Preordering certain product

 

  1. Telecom
  2. I-cash
  3. Provide local flavors
    1. Exploit innovation of local needs
  1. Preordering certain product

 

Rationale:

  1. Quality products to gain competitive advantage
  2. Value added services by pre-ordering and delivery pick up
  3. Coffee counters and seating area.
  4. Less time

Consumption

 

  • Innovation helps the company to gain more customers advantage
  • Increase customer satisfaction by providing value added services
  • Less time consumption by delivering high quality products
  • Franchise stores instead of instead of opening its own
  • Increase levels of technology such as, telecom, taxi service, I-cash and effective pick up.

 

 

3. Stores and service differentiation (#4)
  1. The company uses the e-commerce services
  2. Value added services
  3. Utilize E-payment
  4. Mobile communication
  5. Reserve tickets travel
  • Local flavors to catch up with the local customers, such as tea egg
  • Untapped the leverage within the group companies to enter e-commerce
  • Services such as warehousing, transportation
  • Quick delivery services to save time

 

 

 

  1. The company uses the e-commerce services

 

  1. Value added services

 

Rationale:

  1. Launch Bill services payment
  2. Customer’s satisfaction
  3. Provide local services to catch up local customers
  4. Untapped the leverage within the group companies
  5. Fact and quick services

 

 

4. Competitive advantage (#13)A. The company should reduce costsB. Achieve economy of scale

C. Generate synergies with resource sharing

D. Conglomerate

  1. Biggest convenience store chain
    1. The company should reduce costs
C. Generate synergies with resource sharing

 

Rationale:

  1. Cost saving
  2. Better use of resources
  3. Group wide synergies
  4. Value added services to the customers
  5. Achieve economy of scale by resource sharing

 

  • Increase the target consumers, especially focus on young professionals
  • Adding value and getting value in return
  • Low cost strategy will increase the consumption of buyers on a daily basis
  • Group wide synergies to improve its competitive advantage

 

 

5. Marketing Strategy (#16)
  1. Use television commercial to reach their customers
  2. Follow seasons and occasions
  3. Build strong organization image
  4. Good locations with long distances
  5. Community services Center concepts for the people
A. Use television commercial to reach their customers

E. Community services Center concepts for the people

 

Rationale:

  1. The company should create awareness through television
  2. The Majority of the people use social website
  3. Customer’s satisfaction
  4. Create awareness through billboards
  5. Convenient regular shopping

 

  • The biggest opportunity for the company is increase its brand portfolio
  • More features lead the company to gain competitive edge
  • Established service based product because only modern convenient cannot satisfy customers.
  • Create awareness through different mediums, such as, television, social media, and billboards.

 

 

Rationale for selection and non-selection:

  1. Develop a balance between standardization and localization
  2. Meet the area standard of U.S policy
  3. Develop long distances
  4. Competitive environment
  5. Promotion through television and social websites

 

 

RISK ASSOCIATED WITH EACH SOLUTIONS

S- MOST IMPORTANT PROBLEMS AND CHALLENGES AND OPPORTUNITIESC- POTENTIAL SOLUTIONSRISK ASSOCIATED WITH EACH SOLUTIONS
  • Balance between Standardization and localization

 

  • Chain should be separated from one to another
    • Average area smaller at 700 square meter
    • Huge investment to set up standard area
    • High density locations

7-Eleven In Taiwan Adaption Of Convenience Stores To New Market Environments

  • Localization and IT innovation
  • Exploit innovation of local needs
  • Risks at satisfactory levels of sales and profits
  • Reinforce the technology lead to increase in financial costs
  • The company may face operational hurdles
  • Competitive advantage
  • Value added services
    • Low margin businesses with low-cost strategy
    • Unanticipated events and uncertainties liabilities
    • Customers dissatisfaction .................................

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