Basic Facts History Around the World Mission & Vision Fun Facts Products & Services Position in the Market Strategies & Tactics SWOT Analysis
7-Eleven, Inc., is the worlds largest operator, franchisor and licensor of convenience stores. Founder : Joe C. Thompson Current CEO: Joseph DePinto more than 43,500 stores more than 45,000 employees Revenue: 17,000 billion US dollar Net income: 2,000 billion US dollar
1927: Founded in Dallas, Texas, when an employee of Southland Ice Company, Joe C. Thompson, started selling milk, eggs and bread from an ice house. 1946: All stores were open from 7 am to 11 pm, hence the company began to use the 7-Eleven name. 1952: 100th store opening 1960: 500th store opening 1963:1,000th store opening 1974: First 7-11 convenience store opened in Tokyo.
In 1980: The company ran into financial difficulties, selling off its ice division, and was rescued from bankruptcy by Ito-Yokado Southland Corporation entered into bankruptcy protection. In 1991, IYG, The Japanese company gained a controlling share of 7-Eleven,acquired 70% of Southland’s common stock. 2005: Ito-Yokado formed Seven & I Holdings Co. and 7- Eleven became its subsidiary. 2011: Celebrated the opening of 40.000th store at its hometown, Dallas.
MissionAt 7-Eleven, we are on a mission to makelife a little easier for our guests.VisionOur Vision Is to Be the Best Retailer ofConvenience.
Enough fountain drinks are sold at 7-Eleven stores in a year to fill Walt Disney World’s Typhoon Lagoon twice. Approximately 25 percent of the U.S. population lives within one mile of a 7-Eleven store. 7-Eleven stores sell almost 38 million gallons of fountain drinks a year – enough to fill approximately 51 Olympic- size swimming pools.
7-Eleven has the largest ATM network of any retailer in United States. Ho Ho Ho! The day most retailers are closed, 7-Eleven is hopping. Christmas is one of the biggest sales days of the year for the convenience chain. 7-Eleven adds another store to its worldwide operations every 3-½ hours.
Products Services Food Items Payment of Bills Fresh Payment for internet shopping Hot Oil and gas services Off the Shell Automobile parts and services Beverages ATMs at almost all the stores Cold Meal Delivery service for aging From the fridge population of Japan Hot Ticket Sales, Photocopying Magazines Pick up location for parcel delivery. Soaps, Detergents etc. Video rental service Game, Software
• Fresh food Sandwich Salad Fruits Of the Shelf Candy Chips Snacks Frozen
Beverages • Big gulp is a soft drink that is produced by Coca-Cola • Slurpee is known to be contemporary, cool and fun. The colorful chilled beverage is strongly associated with lightly carbonated fruit flavors. Play Electronics Gaming Movie Rent
Services Prepaid DebitCards Play,Gift,Music Cards• ATM; AmBank ATMs are at selected 7-Eleven stores nationwide. Equipped with MEPS more banking facilities to come.• Photocopy • Mobile reloads• Fax • Internet Games reloads
7-Eleven, primarily operating as a franchise, is the worlds largest operator, franchisor and licensor of convenience stores, with more than 40,000 outlets, surpassing the previous record-holder McDonalds Corporation in 2007 by approximately 1,000 retail stores In 2008, 7-Eleven was named as the No.1 overall franchise by Entrepreneur, beating out Subway, which had held the number one spot for 15 years. In addition, they were also ranked No.2 in Low Cost Franchises
In a four-week period, customers visit a 7-Eleven store an average of 17 times, 80 percent of their total trips to any convenience store.
The IP Analysis 7‐Eleven factors are considered as contributing factors for customer satisfaction The performance of 7‐eleven can continue to sustain the achievements
• 7-Eleven learn from the highly successful Japanese unit, whose keiretsu model of tight partnerships with suppliers was unique within.• By relying on an extensive and carefully managed web of suppliers to carry out many day-to-day functions, the Japanese stores were able to Reduce their costs and Enhance the quality of their operations Refuse rapid growth Strong profits.• Evaluated strategic functions such as product distribution, advertising, & procurement, identify outside partners with greater expertise & scale
Market is getting very competitive, pressure on both revenue & margin 7-Eleven needed to cut its operating costs substantially, expand the range of itsproducts and services, increase the freshness of food items. 7-Eleven had always been vertically integrated, controlling most of the activities in itsvalue chain launched a business review aimed at tightening operations, rebuilding competitive advantage, and perhaps divesting a few noncore businesses. The core of the business, was merchandising skill—the pricing, positioning, and promotion of gasoline, ready-to- eat food, and sundries for consumers driving cars. Company operated its own distribution network, delivered its own gasoline, made its own candy and ice. It even owned the cows that produced the milk it sold. Managers were required to do lots of things other than merchandising—store maintenance, credit card processing, payroll, and IT systems management. They realize that the company could be best-in-class in every one of those functions.
Strategically vital set of capabilities—in-store merchandising, pricing, ordering, and Customer data analysis Reduced its capital assets & overhead while streamlining its organization. Reduced head count 28% from 43,000 in 1991 to 31,000 in 2003 and flattened its organizational structure, cutting managerial levels in half from 12 to six.
SWOT AnalysisSTRENGHTS WEAKNESSES:• Geographic presence • High margins• Strong brands • Limited assortment offering• Franchise system • Not perceived as a place to buy a complete• Convenience meal • Not a first choice destination for shoppersOPPORTUNITIES: THREATS:• Fresh food offering • İntense competition• İncrease share of meals (i.e.; • Low consumer confidence breakfast,lunch,dinner) • Regulatory issues• Private label development • C-store competition and other small-box• Growing demand for organic products retailers • Higher shrinkage on fresh food could potentially impact margins