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

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. 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

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

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.

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

C. Generate synergies with resource sharing

D. Conglomerate

1. Biggest convenience store chain
   1. The company should reduce costs

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

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

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.

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

• 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