Contents

Introduction............................................................................................................................1

Background of the company (7-Eleven).................................................................................2

SWOT ANALYSIS......................................................................................................................2

Strength (key successes).........................................................................................................2

Weakness................................................................................................................................3

Opportunity............................................................................................................................4

Threats....................................................................................................................................4

Recommendations..................................................................................................................5

Conclusion..............................................................................................................................5

References..............................................................................................................................6
Introduction
Business plays a major role within our society. It is an explicit and competitive activity that
unceasingly contributes to the shaping of our society. By satisfying the wants and needs
folks cannot satisfy themselves, businesses improve the standard of life for folks and build
the next standard of living.

It is the way for people to supply product and services to customers, and at constant time,
manufacture a profit for themselves. Businesses don't seem to be solely necessary as a
result of the supply product and services for customers, however they conjointly improve
the economy associated increase jobs for folks inside society that is an additional fact
producing a higher standard of living.

In business to determine a goal for a company or a specific project, a SWOT analysis can
help to determine if it's a good enough idea to move forward. Through careful analysis and
measure can avoid costly mistakes. Most companies around the globe undertake SWOT as a
group to be able to get as much feedback as possible in order to maintain and as well to
improvise their businesses.

SWOT analysis which is used to analyse a business scenario involves learning the knowledge
in a very case study closely and distinguishing the strengths, weaknesses, opportunities and
threats mentioned. These points area unit then classified in note type into the acceptable
sections of a SWOT table.

A SWOT table seems like this (usually while not the headings ‘Internal factors’ and ‘External
factors’).

Internal factors
Strengths
Weaknesses    
       
   
External factors
Opportunities    
Threats    
   
   

Table 1: SWOT table

In this research, we will looking forward in analysing 7-Eleven company which provides a
comprehensive insight into the company’s background, corporate strategy, business
structure and operations. Besides that this research contains a detailed SWOT analysis and
as well as recommendations based on the SWOT analysis done.
Background of the company (7-Eleven)
7-Eleven was founded in 1927 and has bloom their retail across the globe and now has
about 50,000 outlets worldwide. 7-Eleven is known as the as the leading organizations in its
industry. 7-Eleven has been dominated by the Japanese interests. Seven & I Holdings
headquarter in Japan is known as the parent company has been controlling 7-Eleven since
2005.

Recently 7-Eleven has been in the spotlight when the company has been benchmarked
internal against their industry peers in Asia. Positive changes up in 7-Eleven Malaysia
Holding Berhad when the shares has seen rise in shares about RM1.47 on Aug 3, from July
24’s closing price of RM1.14. this shows that there’s 29.14% rise in the shares. It also saw a
significant shareholding change, with the entry of Johor Sultan, who emerged as the second
largest shareholder with a 8.4% stake, presumably after acquiring the shares from entities
controlled by tycoon Tan Sri Vincent Tan Chee Yioun, the largest shareholder of the
company. Below states the mission, vision and objectives of 7-Eleven company.

MISSION
At 7-Eleven we are on a mission to make life a little easier for our guest.

VISION
Our vision is to be the best retailer of convenience.
OBJECTIVES
1. To ensure that people across the organization understand its vision
2. Create a work environment in which it is possible to pursue this vision
3. Coach people on how to collaborate effectively within their own units and across
business lines
4. Improve the problem solving and decision making abilities of individuals and teams
5. To develop processes for streamlining operations, rebuilding teams and opening new
lines of communication
6. To remove organizational barriers that hindered productivity and profitability
7. To increase trust between the people in the organization
Notably, there have also been management changes, with the most recent being the
resignation of executive director and chief executive officer Gary Thomas Brown on July 31,
2017, due to personal reasons. Brown has been with the company for over three years.

7-Eleven analyse their industry prominently by carefully reviewing their SWOT analysis. This
analysis helps them to do situational analysis of the company.

SWOT Analysis

Strength (key successes)

One of the key reasons would be their strategic and convenient locations. Having set it
nearby and ensuring convenience would be the major benefits for their customers.
Commonly purchased products featured in convenient locations promises greater market
coverage. Besides that, 7-Eleven who is famous for brands in their outlets also boosts up
their own individually branded products for example Slurpee and Big Gulp. These products
seem to be one of the main purpose of customers heading to any 7-Eleven stores nearby.

Their franchised model is one of the key successes. Mostly 7-Eleven stores nationwide are
franchised which makes them to grow the number of outlets around. Without having
significant capital one can start up a store since the franchisee is responsible in setup costs
and all.

Weakness
Talking about weakness where 7-Eleven has been analysing to improve upon further to build
on competitive strategic positions and advantage. High rental costs to be known as one of
the weakness to be narrowed down here. The need of setting up store in convenient places,
strategic locations brings up high rental cost as well. Higher operating cost makes them to
hike up the premium prices to sustain it. However, there are certain customers who are
willing to purchase despite premium prices, which shows convenience been major
significance. Investment in analysis and Development is below the quickest growing players
within the trade. Even though 7-Eleven is spending above the industry average on Research
and Development, it has not been able to compete with the leading players in the industry
in terms of innovation. It has come across as a mature firm looking forward to bring out
products based on tested features in the market. There square measure gaps within the
product vary sold by the corporate.

This lack of selection will provides a new competition an edge within the market.

The company has not being able to tackle the challenges present by the new entrants in the
segment and has lost small market share in the niche categories.

7-Eleven needs to build internal feedback mechanism directly from sales team on ground to
counter these challenges. Need more investment in new technologies. Given the size of
enlargement and totally different geographies the corporate is aiming to expand into, 7-
Eleven has to place more cash in technology to integrate the processes across the board.
Right now the investment in technologies is not at par with the vision of the company.

Opportunity
Opportunities refer to favourable external factors that could give an organization a
competitive advantage. Regarding 7-Eleven’s opportunities one of it will be increased
product offerings. In several of the 7-Eleven stores, there would be physical capability to
extend the merchandise vary and providing. This provides the chance of having the ability to
supply a bigger choice of each physical merchandise, in addition as services, like ATMs, cell
cards, and maybe even automobile insurance. Certainly in some countries, 7-Eleven has
enlarged into offerings of wine, beer, fuel, ATMs, coffee, donuts, pizza, sandwiches many
more.

Co-branding location will be another opportunity. This has the advantage of attracting more
consumers, who are possibly less reliant on the convenience aspect, and are likely to buy
from both businesses over time. 7-Eleven could expand their geographic coverage through
co-branded outlets with other significant retail offerings. For example, they could partner
with a coffee chain or a sandwich chain and set up a co-branded store where both stores
operate independently but out of the same location.

Threats
As we all know that in each of all businesses will have their business threats. Current threat facing by
7-Eleven would be supermarkets which are moving to online deliveries. This could be a threat since
due to some consumers are adapting themselves to purchasing groceries online which would be
convenient to them.

Besides that, security wise would be another threat for 7-Eleven. 7-Eleven is a convenient store
which operates 24/7 basis around the globe which is likely to be a target for theft and armed
robbery. This will cause consumers to develop fear in buying especially during night.

Shoplifting will have minor threat as well for 7-eleven. Minimal supervision by 7-Eleven staffs will
make this shoplifting continues and indulges loss to 7-Eleven

Recommendations
There are number of risks that had been undergoing throughout and challenges being faced
by 7-Eleven. Let’s say through political, economically and other retail detail has been pushed
to difficulties. Employees well trained will be one way to mitigate these risks. 7-Eleven hires
their staff and ensures all their staff to undergo Employee Training Program. Meanwhile, for
store managers the Store Management Program will be implemented. The coaching centre
is in KL there is thirty five coaching stores everywhere Malaysia to confirm the enough flow
of trained personnel for 7-Eleven outlets’ new convenience stores. So, 7-Eleven staff are
savvy to impress and serve customers.

Besides that, competitions among retailers are one the most known risk. Foreign retailers
such as Tesco, Giant and various retailers such as 99 Speedmart, petrol kiosk based like as
Mesra, Select all puts in high competition against 7-Eleven. 7-Eleven can overcome this by
operating on 24 hour basis whilst other retailers don’t. Moreover, 7-Eleven ensures they
have an advantage from these petrol kiosks which are geographically restricted location
wise. 7-Eleven has been mitigating these risk and are still analysing more risks and ways to
overcome it to boost their business.
7-Eleven need to enhance their business by engaging it into e-commerce platform to
become even more convenient to consumers, as part of its strategy to maintain market
leadership in the convenience store industry.

Managing the threats faced by 7-Eleven can help in improvising their businesses. For
example to manage security problems, enhancing various security measures such as having
security cameras, safe deposits, alarm function to alert the public and so on. Increasing
staffs in a store can aid this issue as well.

Conclusion
To become a much more desirable store, 7-Eleven should revise their strengths,
weaknesses, opportunities, and as well as threats. By analysing these factors can be a better
provider and to compete with their competitors. Marketing ways applied by 7-Eleven clearly
provides the all the information that's necessary for the expansion and development of a
business. Based on their SWOT analysis by analysing it, more enhancements and changes
can be implemented to make their business to grow into much fast pace growing
environment.

The strategies that are implemented by 7-Eleven consist many basic essentials features like
innovative ideas, market research, customer views, forecasting consumers demand,
organizing and planning. In this modern world, the demand for goods such as groceries are
increasing at an alarming rate because it is a daily needs products that customers will always
buy and buy every day. Most of the businesses carry different styles of promoting methods
so as to serve their customers during a a lot of efficient and higher ways in which than their
competitors as they require their

business to be stable in the market and survive for each such a long term. There are a lot of
changes in people’s lifestyle and 7-Eleven should adapt to it and be the first to provide
customer’s needs.

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