7-Eleven Philippines reported a 32.5% increase in profit during the first six months of the year, totaling P472.3 million. The company's strategic focus on aggressive expansion has enhanced its market visibility, despite economic challenges such as peso depreciation and political instability. The BCG matrix highlights the importance of managing product categories like cash cows and stars, which generate significant revenue, while also addressing slow sellers and potential question mark items.

1. 7-Eleven Philippines
Alamar, Alyssa Joi D.
Chan, Kimberly Joy E.
BA 190: Strategic Management
Prof. Mita Angela Dimalanta
University of the Philippines

2. SPACE Matrix
Financial Position (FP) Ratings
The company netted P472.3 million during the first six months of the year, a 32.5%
increase from the P356.5 million recorded a year earlier
6
PSC exhibited a record performance last year, registering a P1.01-billion profit or 15%
more than the P873.3 million recorded in 2014
5
Shares in PSC closed P3 or 2.11% lower at P139 apiece on the Philippine Stock
Exchange on midyear 2016
3
Total 14
Industry Position (IP) Ratings
International chain of convenience stores that operates, franchises and licenses some
56,600 stores in 18 countries
6
The company has a bigger network of stores compared to other convenient stores in
the country (higher visibility & accessibility)
5
The aggressive expansion contributes more to the company’s increased visibility and
accessibility
5
Total 16
Stability Position (SP) Ratings
The economy of the Philippines may be weakening due to the depreciation of the peso
to the dollar
-4
Political unpredictability of the current administration cause instability in the market
economy
-3
Relatively stable growth however still applies in the convenient store sector -1
Total -8
Competitive Position (CP) Ratings
Very strong market positioning -2
Positive brand recognition and aggressive advertising activities -1
High rate of customer acquisition and retention -2
Total -5

3. Results:
• FP Average: 14 / 3 = 4.67
• IP Average: 16 / 3= 5.33
• SP Average: -8 / 3 = -2.67
• CP Average: -5 / 3 = -1.67
• Directional vector coordinates x-axis: -1.67 + 5.33 = 3.66
y-axis: -2.67 + 4.67 = 2

4. 7-Eleven Strategy Profile
CP IP
FP
SP

5. Recommended Strategy
• Aggressive
7-Eleven Corporation has been steadily pursuing an aggressive
strategy towards expansion and franchising its stores. The company
wants to utilize its first-mover advantage, and it rightly does so with an
aggressive strategy.

6. BCG (Boston Consulting Group) Matrix

7. • Dogs
The dogs in the stores are the products that are slow sellers or dead items. These are mostly composed of the
household goods, stationary, magazines, and accessories. The advantage of the slow sellers is that it helps keep the
store fully stocked. It is also important because it becomes a convenient item when large chain stores are closed.
Allowing the products to remain in the store will still bring in revenue even if a customer purchases it once a week or a
month.
• Cash Cows
The most important section of the BCG Matrix section is the cash cow because those goods are bringing in the money
with little investment and allowing the company to invest largely in other ideas and merchandise.
• Question Marks
The company should consider candy, and sanitary/hygiene products at a better bargain because of the economy.
Those items tend to be more expensive for so little quantity. Bringing in an affordable brand with a good quality would
boost those categories. Whereas, ice tubes sold per kilo in 7-Eleven stores seemingly appeal to store customers but
only during peak seasons making its success questionable even though its market share for constant purchase
continues to grow.
• Stars
Big Gulp fountain Drinks, Slurpees, City Blends Coffee, and Fresh Foods are known to be 7-Eleven’s best sellers. They
generate ample amount of cash and continuously appeals to customers but because this type of products require
machines and careful handling due to its perishable factor, while their market share grows rapidly they require
investment to maintain their lead. Investment to this product includes the purchase of machine, repair and
maintenance, and added amount of utility charges due to wattage use.

8. Positioning Map