Professional Documents
Culture Documents
Franchising / Legal
7. 7-Eleven Taiwan able to franchise its convenient stores -
Less capital expenditure (eg. no need to buy property for
store openings) and less managerial time spent in monitoring
the operations. This will result in rapid growth and greater
flexibility in the choice of sites and store location.
Management
8. 7-11 being part of a conglomerate - UPEC developing an
(Logistics) in-house infrastructure and leveraging on its own
internal network (i.e. warehouses and logistics) to meet the
need of 7-11 stores for higher efficiency and lower costs
(saving in space and recurring expenses).
Technological strength
9. Technology advancement - Constantly upgrading their e-
commerce system (EOS > POS > Graphic Ordering Terminal >
Mobile Office platform) to improve the operation process.
Financial Strength
15. Growth in revenue and profit for 7-Eleven Taiwan (largest
retailer with revenue NT$10.8 billion) results from smooth
expansion on the business.
Opportunities: SO Strategies: WO Strategies:
Socio-cultural opportunities 1. S15 + O3 - Market Research (Functional -level) – To 1. (W1, W4) + (O3, O15) - Operations Strategy
1. Taiwan at 616 persons/km2 has the conduct further studies on the work routine pattern of the (Business-level) - To intensify marketing for online
second highest population density in working population to capture their purchase of products in 7- delivery from nearest available stores for
the world. Eleven. customers' convenience due to their work routines.
2. Taiwan consumers are obsessed with 2. S15 + (O1, O6, O14) - Marketing Strategy (functional-level) 2. W1 + O2 - Operations Strategy (Business-level)
immediacy. – To spend available funds from retained earnings to develop - Instead of targeting the current sites, to open 7-
3. Changed work routine of working further marketing strategies to capture more consumers to Eleven stores at sites with higher footfalls for
population resulting less time to regular spend their money in purchasing producsts from 7-Eleven. convenience.
shopping due to long working hours. 3. S15 + O15 - Operations Strategy (functional-level) – To 3. W5 + (O5, O8) - Financial Strategy (Business-
4. Taiwanese people are inclined to reinvestment retained earnings in IT investment to support level) - Franchise its stores to entrepreneurs
coffee either cold or hot weather- the future operations in accordance to technological changes instead of setting up new premises, and offer
530,000 cups sold everyday at 4. S13 + O5- Diversification Strategy (Business-level) – To capital financing to these entrepreneurs to
convenience stores. duplicate its existing business model of telecom business (7- encourage setting up of more new stores.
5. Entrance into Shanghai, China - both Mobile) and iCash cards to China. 4. (W1, W2) + O12 - Marketing and Pricing
have similar socio-cultural background. 5. S3 + O2 , S8 + O4 - Diversification Strategy (Business- Strategy (Business-level) – To come up with new
level) Unrelated Diversification- Setup 7-Eleven kiosk offering marketing strategies to capture the young urban
Economical opportunities fast and fresh food that can be consumed immediately. profesionals.
6. Taiwan has low inflation rate and high 6. S1 + (O13, O10) - Cooperative Strategy (business-level) –
growth rates (one of Asia's economic Aggresively identifying suitable entrepreneurs to franchise its
tigers). stores to them
7. Retail trade in Taiwan was valued at 7. (S1, S6, S15, S7) + O5 - International Strategy (business
$116.85 billion in 2010 (14% of GDP). -level) – To enter into overseas market i.e. Shanghai, China
8. Taiwanese entrepreneurs are inclined and other potential countries.
to the franchising model. 8. (S11, S12, S13, S14) + O12 - Marketing Strategy
9. Offer low-cost, tasty and hygenic food (functional -level) – Targeting different segments of
compared to current street vendors who customers, other than those that already have been
offer not entirely hygenic food. identified.
Political opportunities
10. Taiwan government’s steady
liberalization of the economy - helped
held down prices.
Demographical opportunities
11. High density of footfalls in the
streets of Taiwan.
12. Young urban professionals who are
less price sensitive.
Demographical &
13. Relatively young population (73.4%
aged 15-64)
Buyer Power
they are not price sensitive – switching
power is high
Technological opportunities
15. Opportunity in the bourgeoning
information technology (IT) sector.
Competitive rivalry
The street vendors are not hygienic
New Entrant
Limited land or store locations dues to
Taiwan’s physical conditions limits new
entrant’s capability to enter the market
Threats ST Strategies: WT Strategies:
Competitive rivalry threats 1. S15 + (T1 , T2, T6) - (Acquisition strategy) Acquire 1. (W1 , W3) + T5 - Marketing Strategy (Business-
1. Highest density of convenience stores competitors: to gain market shares and reduce rivalry using level) - Marketing/Promotion on discount or rebate
in the world - each store is located company generated revenue and profit. Choosing the right for using the iCash to purchase from 7-11
approximately 6 minutes apart. competitors to acquire and attack the remaining competitors 2. W2 + T6 - Acquire competitors (Acquisition
2. Competition from local convenience using other strategy. strategy) - that has already set foot in Taiwan with
stores (i.e. Family Mart, Hi-Life and OK). 2. S1 + T3 , S8 + T5 - Cooperative Strategy (Corporate-level) strong presence and the suitable store space to
- Strategic alliance on procurement: bulk purchase of overcome unavailability of suitable / convenient
Substitute threats supplies, increase the efficiency of the economies of scale, new stores
3. Competition with presence from create cost bargaining power of buyers, cost leadership 3. W4 + T5, W5 + T6 - Cooperative Strategy
almost all major global retailers in 3. S3 + T4 - Marketing Strategy (Business-level)- (Business-level) - Collaboration with major petrol
Taiwan (eg Carrefour, Pizza Hut, Marketing/Promotion on healthier food stations to rent new store space rather than buy
Starbucks, McDonalds). 4. S13 + T5 - Marketing Strategy (Business-level) - new store, reducing capital expenditure and
4. Street vendors who offer low-cost and Marketing/Promotion on discount or rebate for using the iCash unavailability of suitable / convenient new stores
tasty food. to purchase from 7-11 4. W5 + T6 - Operation Strategy (Business-level) -
5. S9 + T7 - Diversification Strategy (Business-Level) - Expansion by renting store space rather than buy
Buyers threats Establish platform and enter e-commerce market. new store, reducing capital expenditure and
5. Customers are sensitive to prices (eg. 6. S13 + T3 - Marketing Strategy (Business-level) Leverage on unavailability of suitable / convenient new stores
housewifes). i-cash card advantage to collaborate with competitors by
adding additional receiving terminals (such as Carrefour,
New entrant threats Pizza Hut and other large franchises) of the i-cash card.
6. Scarcity of freestanding sites limited However, provide added benefits for usage at 7-eleven to
oppportunities to build new stores from maintain attractiveness.
the ground up.
7.Taiwanese market was small and
unable to build scale from a single
business.