7/11 Case Study

7-Eleven Case Study

1. How has the convenience-store concept evolved in the United States?

The convenience store was brought in by 7-Eleven. It was a store that started providing daily consumption groceries to its consumers, all in one floor, and that too between 7am to 11pm which was convenient for a many consumers who used to work in shifts.

After looking at the needs of people they decided to launch a 24h service of its stores to its consumers. Consumers found this very convenient because they did not have to worry for the timings as they can get in the store whenever they want.

This 24/7 service of 7-Eeven became a hit because more than 10 million people in the US were awake till 3am and about 7 million people were working at that time The store adapted to the changing work style and routines of the Americans. inculcating the habit in Americans to buy groceries in the convenient stores, which met most of the requirements of the consumer.

1. Is the concept universal across all countries, including Taiwan?

Yes, the concept of convenience stores was more or less on the similar lines outside the US. They were making progress everywhere they were opening despite of the presence and proliferation of the domestic players in every country.

Taiwan was a little bit different since they had a vertical zoning of property. Plus, there was a unique trait of Taiwanese consumer who had an obsession with immediacy and wanted less waiting time. The localization of the stores in order to keep local food products was also made in order to increase footfalls. It became more than a place dedicated to supplementary shopping

1. How do 7-Eleven stores in Taiwan compare with their counterparts in the US?

As mentioned before, they evolved in a more supplementary shopping style.

The main difference was probably made in the floor size of the store. While stores in the US were big and were generally in the suburban areas so that people have a drive way and ample parking facility, in Taiwan the zoning of property was vertical (horizontal in the US) due to which the store size were very small and were generally in the basement or a floor of the high rises. Therefore distances between Taiwanese  7-Eleven stores were also less as compared to that in the US.

Apart from the core services, certain extra services were also introduced in Taiwan like I-Bon, coffee, pre-ordering delivery and pick up, telecom related products, taxi services, seating areas and laundry services. Hence, the 7-Eleven stores in Taiwan were different from its US counterparts.

1. Has localization of 7-Eleven in Taiwan strengthened or weakened – the concept of convenience stores?

Definitely strengthened. Localization helped 7-Eleven strengthening the concept of convenience stores in Taiwan because it helped the convenience stores to become like retail nomads.

As a consequence, this helped the company in reducing its capital outflow and managerial time spent in monitoring the operation offering greater flexibility choosing stores and location plus facilitating rapid growth of the store by entering the burgeoning market place.