assignment of 7 eleven

7-Eleven SWOT Analysis

Before we dive deep into the SWOT analysis, let’s get the business overview of 7-Eleven. 7-Eleven is an international chain of convenience stores. It began operations in the 1920s and is now a subsidiary of Seven & I Holdings Co. of Japan.

7-Eleven has over 71,000 stores in 17 countries, making it the largest convenience store chain in the world. The company operates primarily on a franchise model. Many of its stores are owned and operated by independent franchisees, although some are also directly owned by the corporation.

7-Eleven stores offer a variety of products, including snacks, fresh foods, beverages, and daily necessities. They also often provide services like ATMs, fuel, and, in some regions, bill payment services.

Financial Performance 2022 : According to 7-Eleven’s latest financial reports, the company earned $2.94 B, an increase over its 2021 earnings of $2.81 B.

7-Eleven PESTEL Analysis

Here is the SWOT analysis for 7-Eleven

A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture’s success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT Analysis of 7-Eleven.

SWOT Analysis: Meaning, Importance, and Examples

Brand Recognition : 7-Eleven is one of the most recognized and established names in the convenience store industry, with a presence in numerous countries worldwide.
Extensive Network of Stores : 7-Eleven operates a vast network of stores, ensuring they are conveniently located for customers. This extensive footprint helps in generating high sales volumes.
Franchising Model : The company’s franchising model has been a key strength, allowing for rapid expansion and a broad reach while minimizing the investment and risk for the company.
24/7 Operations : Most 7-Eleven stores are open 24 hours a day, seven days a week, providing customers with access to products and services at any time. This convenience is a significant draw for customers.
Diverse Product Offering : 7-Eleven offers a wide range of products, including food, beverages, personal care items, and other convenience products, catering to the varied needs of its customers.
Innovation : The company has been innovative in its product offerings and services. For example, it has developed a mobile app that offers customers promotions and discounts, enhancing the customer experience.
Strong Supply Chain and Distribution : 7-Eleven has a robust supply chain and distribution network, ensuring that its stores are consistently stocked with the necessary products.
Customer Loyalty : The convenience and accessibility of 7-Eleven stores have helped build a loyal customer base.
Adaptability : 7-Eleven has shown a solid ability to adapt to different markets and cultural contexts, tailoring its product offerings and services to meet local customer needs.
Effective Marketing and Promotions : The company invests significantly in marketing and promotional activities, helping to drive foot traffic to its stores and increase sales.

Dependency on Franchisees : A significant portion of 7-Eleven’s stores are operated by franchisees. While this model has advantages, it also means that the company has less control over the individual store operations, which can lead to inconsistencies in customer experience and store quality.
Limited Product Range Compared to Larger Retailers : While 7-Eleven offers a wide range of convenience products, its limited shelf space means it cannot match the product variety of more giant grocery or department stores.
Pricing : Convenience stores generally have higher prices than supermarkets or bulk retailers. This can make it challenging for 7-Eleven to compete on price, particularly for price-sensitive customers.
Dependence on Convenience Purchases : 7-Eleven’s business model heavily relies on customers making convenience purchases. Changes in consumer behavior, such as increased planning and reduced impulse buying, could negatively impact sales.
Limited Fresh Food Options : While 7-Eleven has been expanding its range of fresh food and healthy snack options, it is still perceived by some as lacking in this area compared to other retailers.

Opportunities

Expansion in Emerging Markets : With its successful franchise model, 7-Eleven can expand its footprint in emerging markets where the demand for convenience stores is growing.
Enhanced Digital Presence : Investing in a more robust digital platform, including mobile applications and online delivery services, can help 7-Eleven cater to the increasing demand for convenience and contactless shopping.
Healthier Product Offerings : There is a growing trend towards healthier eating, and 7-Eleven could capitalize on this by expanding its range of healthy and organic food options.
Sustainable Practices : Adopting and promoting sustainable business practices could not only help in reducing the company’s environmental footprint but also attract environmentally conscious customers.
Partnerships and Collaborations : Forming partnerships with other retailers or service providers could help in expanding the company’s product and service offerings enhancing customer convenience.
Leveraging Technology for Customer Experience : Utilizing technology to improve customer experience, such as through personalized promotions, loyalty programs, and efficient check-out processes, could help attract and retain customers.
Diversification : Expanding into related business areas or offering new services, such as financial services or parcel delivery, could open up additional revenue streams for the company.
Innovation in Store Formats : Experimenting with different store formats, such as smaller kiosk-style stores or larger super convenience stores, could help cater to varying customer needs in other locations.
Training and Development : Investing in training and development programs for staff could help in improving service quality, enhancing the customer experience, and reducing staff turnover.
Community Engagement : Engaging with the communities where 7-Eleven operates through local events or charitable initiatives could help in building a positive brand image and strengthening customer loyalty.

Increasing Competition : The convenience store market is highly competitive, with numerous players vying for market share. The rise of new competitors or the expansion of existing ones could threaten 7-Eleven’s dominant position.
Changes in Consumer Behavior : Shifting consumer preferences, such as a move towards online shopping, could reduce foot traffic in physical stores, impacting sales.
Economic Downturns : Economic recessions or downturns can reduce consumer spending, adversely affecting 7-Eleven’s revenue.
Regulatory Challenges : Changes in laws and regulations related to retail operations, health and safety, or environmental standards could increase operational costs or limit business practices.
Supply Chain Disruptions : Disruptions in the supply chain due to natural disasters, geopolitical issues, or other factors could lead to stock shortages and impact customer satisfaction.
Health and Safety Concerns : Issues related to food safety or the spread of contagious diseases could deter customers from visiting convenience stores, potentially harming the brand’s reputation.
Technology Risks : As 7-Eleven integrates more technology into its operations, it becomes susceptible to cyber threats, data breaches, and the need for continuous investment in technology upgrades.
Fluctuating Commodity Prices : Volatility in the prices of commodities such as coffee, dairy, or fuel (if the store sells gasoline) can impact profit margins.
Environmental Sustainability : There is increasing public awareness and concern about environmental sustainability, and failure to address these concerns could lead to negative publicity and loss of customer trust.
Rising Labor Costs : Increases in minimum wage or changes in labor laws could result in higher operational costs for 7-Eleven, particularly as it operates on a 24/7 basis.

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7-Eleven SWOT Analysis: A Conveniently Detailed Report

In a 7-Eleven SWOT analysis, we look at how the largest convenience store retailer in the world has dominated its competitors. With over 83,000 stores across 19 countries, this iconic global brand is easily recognizable as a convenient one-stop shop. As a pioneer of many well-known drinks, food items, and convenience items let’s take a look at 7-Eleven’s strengths, weaknesses, opportunities, and threats against its competitors.

Table of Contents

7-Eleven History

The American convenience store chain 7-Eleven, Inc. was established in Dallas, Texas, in 1927. Initially known as Southland Ice Company, the business ran an icehouse where customers could purchase ice blocks to keep their food cold. However, Joe C. Thompson and John Jefferson Green, the company’s founders, realized in 1927 that they could sell essential groceries like milk, bread, and eggs from the same location as their ice business.

They started out by opening small stores in various Dallas neighborhoods, and by 1946, they had changed the name of the business to 7-Eleven in honor of the new store hours of 7 a.m. to 11 p.m.

In a 7-Eleven SWOT analysis, the chain opened its first overseas location in Canada in 1969. Over the ensuing decades, the company kept growing both domestically and abroad. The company was purchased by the Japanese retail conglomerate Ito-Yokado in 1971, which aided in funding the chain’s further growth and modernization. Currently, 7-Eleven is the largest convenience store chain in the world, with more than 71,000 locations across 17 nations.

The iconic Slurpee frozen drink and the Big Gulp oversized sodas are just two of the creative marketing and merchandising tactics for which 7-Eleven has become known throughout its history. The business also pioneered the introduction of self-serve hot food and beverage stations, digital ordering platforms, and mobile payment options in the convenience retailing industry.

7-Eleven stores are located within a two-mile radius of 52% of the United States population.

Millions of customers all over the world continue to frequent 7-Eleven in search of snacks, beverages, and everyday household necessities, despite the chain’s increased competition from other convenience store chains and online retailers. 7‑Eleven, Inc. is wholly owned by Seven & i Holdings Co. Ltd.

What are the 7-Eleven Brands?

7-Eleven, Inc. operates several brands other than just the 7-Eleven convenience stores.

The family of establishments includes:

Laredo Taco Company
Raise the Roost Chicken and Biscuits

7-Eleven SWOT Analysis At-A-Glance

7-Eleven SWOT Analysis:

A SWOT analysis is a framework used to assess a company’s competitive situation and to create strategic planning. By taking 7-Eleven’s strengths, and weaknesses of 7-Eleven’s threats of 7-Eleven as well as opportunities of 7-Eleven into account, we may better gain in-depth knowledge about the 7-Eleven company. In this article, we’ll be taking a look at 7-Eleven’s SWOT framework to better understand its competitive position and potential for future growth. See how 7-Eleven competitors fare against them and learn about 7-Eleven’s Strengths, weaknesses, opportunities, and 7-Eleven threats.

7-Eleven SWOT Analysis Strengths:

The areas where a company excels above average or in a manner that distinguishes it from its rivals are its strengths. 7-Eleven strengths are outlined in this 7-Eleven SWOT analysis. In a SWOT analysis of 7-Eleven, some of its strengths compared to competitors include:

What are the strengths of 7-Eleven?

Strong brand recognition: The name and logo of 7-Eleven are instantly recognizable and are linked to accessibility, affordability, and convenience.

Wide range of products: 7-Eleven offers a wide range of products, including snacks, drinks, grocery items, and even hot food and beverage options. In a 7-Eleven SWOT analysis several of the most popular convenience were first created by 7-Eleven, these products include:

Coffee in “to-go” cups
Stores are open 24 hours and 7 days a week “24/7”
Self-serve soda fountain drinks
Slurpee frozen treat
Big Gulp drinks

Convenience and accessibility: Customers can easily access 7-Eleven thanks to its more than 71,000 locations across 17 countries, many of which are open around the clock. Customers who need to make quick purchases or access necessities outside of regular business hours now have a convenient option.

Technological innovation: 7-Eleven has been at the forefront of technological innovation in the convenience store industry, introducing new digital ordering and payment options, self-serve food and beverage stations, and other technological advancements that enhance the customer experience.

Strong franchise network: 7-Eleven pioneered the franchise model. Each store primarily operates as a franchise, which enables the business to grow quickly and profitably. The company works closely with its franchisees to ensure that they adhere to the company’s standards for quality and customer service. The company offers training and support to its franchisees.

Overall, 7-Eleven’s strengths are rooted in its ability to provide customers with a convenient and accessible shopping experience, a wide range of products, and innovative technology, while also maintaining a strong brand identity and franchise system.

7-Eleven SWOT Analysis Weaknesses:

Weaknesses of a company are those that limit its potential, make it less competitive, and prevent it from achieving its goals. In this section of the 7-Eleven SWOT analysis, we’ll look at 7-Eleven weaknesses. Some of their weaknesses compared to competitors include:

Limited product offerings: The small size of its stores may limit 7-Eleven’s ability to offer a wide range of products, even though it is well known for its convenience goods like snacks and drinks. In recent years 7-Eleven has started a new type of store called the 7-Eleven Evolution store which features unique food, beverages, etc.… that are restaurant quality.

Dependence on franchisees: In a 7-Eleven SWOT analysis, franchisees own and run a sizable portion of 7-Eleven’s retail locations. Franchisees might not always adhere to the same standards as corporate-owned stores, which can cause problems with consistency and quality control.

Competition: 7-Eleven faces competition from a variety of retailers, including other convenience stores, grocery stores, and online retailers.

Geographic concentration: While 7-Eleven has a large presence in some countries, such as Japan, it may be less well-known or less prevalent in other markets. This can limit its growth potential in certain regions.

Dependence on gasoline sales: The profitability of 7-Eleven may be significantly impacted by the sale of gasoline in some markets. Gas price swings can have a big impact on the business’s bottom line in this market, which can be quite volatile.

Negative reputation: 7-Eleven has faced criticism in the past for labor practices and treatment of franchisees. This negative reputation could impact its ability to attract customers and potential franchisees.

7-11 SWOT Analysis Opportunities:

The following portion of the 7-Eleven SWOT analysis will examine some of 7-Eleven’s opportunities compared to competitors include:

Expansion into new markets : 7-Eleven can expand its footprint into new markets, both domestically and internationally, where it currently has little or no presence.

Diversification of products and services: In a 7-Eleven SWOT Analysis, they could expand its offerings beyond the typical convenience store items, such as introducing healthy food options, and fresh produce, or adding services like mobile payments or mobile ordering.

E-commerce and delivery: 7-Eleven could expand its online ordering and delivery options to meet the growing demand for e-commerce.

Partnerships and collaborations: The company could collaborate with other retailers or companies to offer new products or services. For example, 7-Eleven has partnered with delivery services like Postmates and Door Dash to expand its delivery options.

Sustainability: There is a growing demand for sustainable and eco-friendly products and practices, and 7-Eleven could capitalize on this trend by offering more sustainable products and reducing its environmental impact.

Franchise growth: 7-Eleven could focus on growing its franchise network and improving support for franchisees to increase revenue and profitability.

7-Eleven SWOT Analysis Threats:

Threats pose a risk to every company’s stability and profitability. In this 7-Eleven SWOT analysis, we will address some of the threats that are important to examine.

In a SWOT analysis of 7-Eleven, some of its largest threats compared to competitors include:

What are the threats of a convenience store?

Intense competition: The convenience store industry is highly competitive, with many established players and new entrants constantly vying for market share. With its largest competitors being Wawa and Circle K brands.

Changes in consumer behavior: Changes in consumer behavior, such as increased online shopping, a shift towards healthier food options, or decreased commuting, could impact 7-Eleven’s sales.

Fluctuations in commodity prices: 7-Eleven’s profitability can be significantly impacted by fluctuations in commodity prices, particularly in the gasoline market.

Regulatory changes: Changes in regulations or laws, such as increases in the minimum wage or new food safety regulations, could increase costs for 7-Eleven.

Negative publicity: Customers or the media may criticize 7-Eleven, particularly in relation to its labor policies, how it treats its franchisees, or how it affects the environment.

These threats are true of all convenience stores, including 7-Eleven.

7-Eleven Competitors:

In a SWOT analysis of 7-Eleven its competitors would fall under the “threats” category. Here are some of the 7-Eleven main competitors in the convenience store industry. Many people ask:

Who are 7-Eleven’s Biggest Competitors?

Other convenience stores : Competitors in this category include Circle K, Wawa, Sheetz, and Speedway. (Speedway was acquired by Seven and I Holdings in 2021.)
Gas station chains: Many gas stations also offer convenience items, such as snacks and drinks, and are therefore indirect competitors to 7-Eleven. Examples include Shell, BP, and Exxon.
Grocery stores : In a 7-Eleven SWOT analysis, some grocery stores have expanded their offerings to include convenience items, such as pre-packaged snacks and beverages. Examples include Walmart, Kroger, and Target.

7-Eleven SWOT Analysis – Conclusion and Recommendations:

7-Eleven needs to focus on a number of key strategies to remain competitive in the convenience store industry.

Based on the 7-11 SWOT analysis, here are some recommendations that 7-Eleven could consider increasing growth in the future:

Diversify product offerings: 7-Eleven could expand its product offerings to include healthier food options, fresh produce, and other items that are in line with current consumer trends.
Emphasize e-commerce and delivery : Given the growing demand for online ordering and delivery, 7-Eleven should continue to expand its e-commerce capabilities and delivery options.
Focus on sustainability: As consumers become more environmentally conscious, 7-Eleven should prioritize sustainability initiatives and reduce its environmental impact. Parent company Seven & i do have a few environmental initiatives they have implemented as well.
Innovate and invest in technology: 7-Eleven should continue to invest in technology and innovation to improve the customer experience, such as implementing self-checkout or introducing loyalty programs.
Strengthen franchise support: In a 7-11 SWOT analysis they could focus on strengthening its support for franchisees to improve consistency and quality control, and ultimately increase revenue and profitability.
Continue to expand internationally: With its success in certain international markets, 7-Eleven should consider expanding further into new markets to capitalize on growth opportunities.
Foster partnerships and collaborations: The company could collaborate with other retailers or companies to offer new products or services, or partner with delivery services to expand its delivery options.

FAQs for 7-Eleven:

What kind of business is 7-Eleven?

7-Eleven is a convenience store chain that operates globally. It offers a wide range of products, including snacks, beverages, prepared foods, and everyday essentials. The stores are known for their extended operating hours, often staying open 24/7, providing customers with easy access to items at any time of day.

How much does a 7-Eleven owner make a month?

The income of a 7-Eleven franchise owner can vary significantly based on factors such as location, store size, local economy, and the owner’s management skills. On average, a 7-Eleven store owner can potentially earn a net profit ranging from $50,000 to $150,000 per year, which translates to an approximate monthly income of $4,000 to $12,500. However, it’s important to note that these figures can differ widely and are not guaranteed.

How is 7-Eleven so successful?

Strategic locations, 24/7 accessibility, various items, a successful franchise model, adaptive innovation, great branding, regional tactics, and community involvement make 7-Eleven successful. These elements make shopping convenient and enticing, boosting its global success.

These suggestions could help 7-Eleven strengthen its areas of weakness, seize opportunities, counter threats, and ultimately grow more quickly in the future. While 7-Eleven is considered to be the largest convenience store network in the world, it still has several opportunities to continue to grow and thrive against its competitors.

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7-Eleven Case Study: The Untold Story of the World's First Convenience Store

Updated: Oct 12, 2023

Introduction

7-Eleven is a super convenience store chain that has 78,029 stores in 19 countries as of November 2021. They were the first to brand themselves as a convenience stores chain, totally differentiating themselves from the competition. Now, did the idea just come to them? In fact it actually was a random occurrence that caught on and was capitalized upon by them. Though it was the first of its kind, 7-Eleven had its ups and downs along its journey, but while other competitors bit the dust on these Chrono events; 7-Eleven was saved by its Japanese counterpart and started to thrive after Japanese intervention.

First Growth Phase

During 1927, 7-Eleven started out as four Dallas-based ice companies, merging to form the Southland Ice Company. At first, they included some major grocery items such as eggs, milk, bread and also gasoline at some stations. Also, longer working hours as compared to super markets provided a competitive edge for this company. (Mechanical Refrigerator was available only after 1926)

Southland Ice Company briefly came to be known as the Totem Stores, after one of the store managers in Texas planted a totem pole near his store. The name caught on and they decided to place one totem outside every store and unify the stores under the name Totem stores.

Southland Ice Company also went through bankruptcy in 1931, during the times of The Great Depression, but it got back up quickly with the help of a banker from Dallas W.W. Overton and Southland Ice Company came under the ownership of board members. During its bankruptcy, the operations were allowed to keep running while the Company sold its legal bonds and reorganized the structure.

In 1933, the Southland Ice company hit a major benchmark for growth when the prohibition on sales of beer was removed and they could now sell beer as well. Subsequently, three years later in 1936, Southland found a more stable footing with Oak farm dairies and started constructing Oak farm dairies around the Southland stores network of logistics.

Southland Ice company also began to offer free movie tickets in return for six of its milk-bottle caps, focusing on selling more of Oak farms dairy products.

In 1946, Southland Ice Company renamed its stores as “7-Eleven” as it indicated the working hours were between 7 am-11 pm. Between the 1950 -1960s they expanded their product lining which included rug shampooers, Television sets, floor polishers etc.

7-Eleven owed its growth to an innovative mindset and keeping in touch with their customer demands as they changed. This, they achieved through customer feedback mechanisms deployed at different points of contact. Also, the end of World War II caused the population to move from urban areas to the outskirts; 7-Eleven managed to capitalize on this situation by opening different stores at strategic locations which were primarily located in the outskirts of the city. With this strategy, they were able to attract a huge number of on-the-go customers.

After 1973, Southland moved its borders beyond its North-American provinces by letting out franchises in Japan (7-Eleven Japan; from here on mentioned as SEJ) in exchange of royalty payments. This move freed up growth prospects for 7-Eleven in a major way, as it freed up capital for further investments and the parent company was less burdened with logistics management of the franchise stores.

First 7-Eleven Store in Japan

Gasoline became the major source of profit for 7-Eleven by 1972; which accounted for more than 25% of total sales. By 1973, the company had an annual revenue of $1.4 billion and net earnings of $23 million from almost 5000 stores throughout most of the United States and Canadian provinces.

The company expanded beyond food, drink, and convenience into other fields, purchasing such businesses as Chief Auto Parts (1978). Because many of its stores also served as automobile filling stations, Southland bought CITGO Petroleum in 1983 as a supplier. The company sold off 50 percent of its stake in CITGO in 1986.

Decline Phase (1980 -1992)

During the 1980s, the competition took a peak as supermarkets started opening till late, and more and more gasoline stations started converting into small convenience stores. This point in the case study highlights a tragic point in the life cycle of 7 Eleven. The company had failed to invest in Information Technology, therefore it could not keep pace with changing customer demand and inventory management. Also diversified investments made it harder for the company to push back on loans.

During the hayday of corporate raiders in the 1980s , the Canadian financier Samuel Belzberg threatened a hostile takeover of Southland. In response, the Thompson family took the company in a private leveraged buy-out in December 1987. Many subsidiaries, including Chief Auto Parts, were sold off in order to pay the heavy debt that resulted from the repurchase of shares. Even so, the company went bankrupt for the second time in 1990, the same year that it sold the remaining 50 percent of CITGO. It emerged the following year with 70 percent of its stock owned by the Ito-Yokado Co., a Japanese retailer, and 7-Eleven Japan, the company’s Japanese licensee.

Growth Phase II (Starting from 1992): Seven Eleven Japan

After 1992, with Ito-Yokado owning more than 61% of the total business, 7-Eleven Inc. (from here on written as SEJ: Seven Eleven Japan) thrived under the guidance of Toshifumi Suzuki.

Toshifumi Suzuki had already had a successful run with SEJ during the course of 1973-1992. His strategy relied on common distribution systems, and infrastructures to support the scaling of the business and mostly because of its “fresh food” concept.

Fresh food regularly accounted for 40% of its sales in SEJ.

At first, the idea of applying the SEJ manoeuver in the US market garnered a substantial amount of skepticism but after the model was tweaked to suit the needs of US-based consumers, it did prove profitable.

In contrast to Japanese consumption patterns, US citizens had historically viewed the 7-Eleven stores as pit stops for cigarettes, gas, drinks, etc. Southland had earlier experimented with fresh foods like hamburgers and submarine sandwiches but had failed due to poor logistics regarding distribution, sales and payroll; which proved to be unfeasible.

Over the years SEI has gained popularity with Big eats, Deli sandwiches and originals such as Gulp, Big-gulp, Super Big-gulp, etc. Following in the footsteps of SEJ, SEI also started focusing on Fresh food and started building infrastructures around it to support the sales and scaling of fresh food. SEI also made an effort in management systems by hiring experienced professionals from food sales backgrounds and started creating a network of proprietary fresh food items.

By 2002, the Infrastructure was nearly complete and operating. After that, they shifted their focus to merchandising, and new product releases. By 2003 company had created a fresh food supply network of 13 commissaries, 11 bakeries, and 22 distribution centres that served 80% of the company stores with fresh food daily.

SEI started out with CDCs in 1994, with well-curated routes which were optimised to their finest to generate more profits. To ensure quality of the products they sorted their products into four different categories pertaining to their temperature. Also, the trucks were supported with dual temperature control units that could store dry food items and other chilled items.

SEI faced a minor setback as it was hard to convince vendors and suppliers to opt for Common distribution. Major companies like Pepsi, Coca-cola, Frito-Lay etc. downright refused to use their mode of distribution. Also, loyalty could not be expected from all the partners and some refused to provide logistics and analytics.

Bill Norris, CEO of Constance food group was a major partner. CFG supplied on a non-proprietary basis approximately 230 7-Eleven stores on Long island with fresh sandwiches, salads and other items. CFG also provided SEI with logistics in Long island and other sales analytics.

Under the new food supply system, the suppliers were bonded into a contractual agreement that 7-Eleven will only buy from these suppliers. Now the SEI had forged solid relationships with the elemental relatives of its business on the basis of mutual trust. All parties worked together and actively shared information regarding its business. With this 7-Eleven had spread its wings to take on a new flight.

In 1993 SEI had bagged a prominent supplier, Charlie Burman, CEO and owner of Bakery Express- Mid Atlantic, who had been supplying fresh donuts on consignment on a daily basis to 600 7-Eleven stores in Baltimore, Washington.

The company had established five cross-functional teams, each led by a category manager, to create new food items that would attract on-the-go customers. The teams performed product development, commercialization, marketing, merchandising, and store execution.

7-Eleven had garnered attention since 1927 and has helped many suppliers to earn their daily bread. As the company grew older and went down a downtrend, these loyal suppliers and franchise owners helped SEI along the way to bring about major reforms as it emerged from bankruptcy.

The change required in order to garner success was a huge one, as it basically meant a cultural transformation in business and marketing scenarios in a grander scheme or in other words, 7-Eleven was saved by their loyal suppliers and vendors who remembered how 7-Eleven gave them good business during their own harsh times.

Business Development

Example SWOT for 7-Eleven

This SWOT example for 7-Eleven convenience stores is designed to help you understand and structure a SWOT analysis . It is ideal for university assignments or as a template for a business exercise.

Company Overview

Opportunities.

7-Eleven has its head office in Dallas, Texas, USA. It was founded in 1927 and now has over 50,000 outlets worldwide.

Since the early 1990s, 7-Eleven has been controlled by Japanese interests and its parent company, Seven & I Holdings, was established as the holding company for 7-Eleven in 2005. The parent company is now ranked as the fifth largest retailer in the world. Seven and I Holdings are headquartered in Japan.

7-Eleven is a large chain of franchised convenience stores across more than 15 countries, including the USA, Canada, Japan, countries in the South-East Asia region and Australia.

The trading name of 7-Eleven was established in 1946 to reflect the then trading hours of 7am to 11pm. Since that time however, many 7-Eleven stores now trade on a 24/7 basis.

Link to their website:

Convenient locations

7-Eleven has over 50,000 outlets throughout the world, which gives them a significant location and convenience advantage. Obviously, being a convenience store, their primary benefit to consumers is that commonly purchased products are located at nearby stores. Therefore, greater market coverage through a greater number of outlets will provide increase convenience to more consumers.

Overall brand equity

7-Eleven is generally perceived as the market leader by consumers in the convenience store sector. This brand equity translates into customer loyalty and reduced price sensitivity and, therefore, continued stability of revenue streams across its outlets.

Individually branded products

In addition to having a strong overall brand, 7-Eleven also has several branded product offerings. The most famous of this are probably the Slurpee and the Big Gulp. In some countries they also have other branded offerings such as Movie Quik in the United States. These individual product brands provide a further strength to 7-Eleven, as consumers may choose to seek out these particular products/brands as their preferred choice.

Franchised model

Many of the 7-Eleven stores throughout the world are franchised. This provides to strengths for the organization – the first being that they can continue to grow the number of outlets throughout the world without having significant capital requirements, as the franchisee is typically responsible for the setup costs of the outlet – and the second advantage being that the stores are run by motivated individuals who have a profit incentive for the store to perform well.

Diversity of income

Because the overall chain of 7-Eleven operates in multiple countries, the parent company has essentially diversified its income streams across multiple markets. While this can also be a weakness, it also provides a strength of stability of income as a downturn in one particular country is unlikely to impact their overall financial results to a significant extent.

High rental costs

Due to the need to locate the 7-Eleven outlets in very convenient locations, they are likely to incur higher rental costs as a result. This higher operating cost structure will mean that they will need to adopt a price premium approach. There are some consumers who are happy to pay a little bit more for convenience and speed of purchase, however other budget-conscious consumers a more price sensitive.

High staff costs

Similar to the high rental costs above, because the store operates on a 24/7 basis in some locations, this type of retailing operation is likely to have a higher ongoing operating cost structure. As a consequence of these higher costs, 7-Eleven will be required to have higher price offerings in order to protect their margins.

Franchisees

Although the overall franchised model is a strength as indicated above, running a large team of franchisees throughout the world is also a weakness. This is because it removes some element of direct control of the day-to-day operation of each outlet and passes it to the franchisee. In addition, a management team is required to recruit, train and monitor the various franchisees, which also adds to the overall cost structure on an operational basis.

Continued market development

As with many chains of small retailers, one of the obvious ways to grow their business is through market development. This means increasing the number of stores they have in existing markets and cities and increasing the number of countries that they operate in. While there is potential to cannibalize sales of existing outlets, much of this concern is passed to the franchisee and does not necessarily affect the parent company.

Increased product offering

In many of the 7-Eleven stores, there would be physical capacity to increase the product range and offering. This provides the opportunity of being able to offer a greater selection of both physical products, as well as services , such as ATMs, cellphone cards, and perhaps even car insurance. Certainly in some countries, 7-Eleven has expanded into offerings of wine, beer, fuel, ATMs, coffee, donuts, pizza, sandwiches and so on.

Exclusive product offerings

7-Eleven has managed to form some strong relationships with key manufacturers that have strong brands. An example here is Gatorade, where certain flavors are only offered through 7-Eleven stores. This has advantages to both of the strategic partners, and is something that will broaden the range of benefits that 7-Eleven delivers to its consumers.

Co-branding locations

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. 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.

Supermarkets moving to 24/7 hours

In some parts of the world, major supermarket chains have adopted a 24/7 operating system. It is common for most major supermarket chains to have extended hours. This erodes 7-Eleven’s natural competitive advantage of having extended shopping hours. This is a significant threat to 7-Eleven over time, as they would not have the low cost structure required to compete effectively on a price basis with a major retail chain, such as Walmart for example.

Supermarkets moving to online deliveries

Some consumers are adopting the system of ordering their groceries online and then having them delivered. Although this requires some pre-planning, it does also offer significant levels of convenience to organized consumers, which does represent a threat to 7-Eleven’s convenience-based competitive advantage.

Because 7-Eleven is a convenience store that handles cash and may be open on a 24/7 basis, it is always likely to be a target for theft and armed hold-up. Obviously the chain has put in various security measures in different parts of the world, including video cameras, safes, and window barriers and so on.

Shoplifting

Like most retail stores, 7-Eleven will have the continued threat of minor shoplifting and stealing. In some locations, these stores operate on a lean budget and only have minimal staff, which presents the opportunity for some consumers to occasionally shoplift. Like with the security threat above, video cameras may assist in this regard.

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Careers at 7-Eleven

7-Eleven aims to be the largest and most popular operator of convenience store outlets in the world, offering a convenient, efficient, and accessible everyday shopping experience.

FOUNDING STORY

7-Eleven was established in September 2005 as a holding company for the 7-Eleven chain of convenience stores, as well as several other retail brands in Japan. 7-Eleven is the largest retail and distribution business in Japan, it’s principal asset, however, is the 7-Eleven brand.

7-Eleven traces its roots back to 1927, when several icehouse companies in the US merged their operations to form the Southland Ice Company in Dallas. Around the time of the merger, one of these icehouse companies, under the leadership of employee John Jefferson Green began to sell food items, such as eggs, milk, and bread.

The Southland Ice Company quickly established itself as a general retailer, assuming the brand name Tote’m Stores.

The Southland Ice Company went through bankruptcy proceedings during the Great Depression, but emerged later with an increased focus on the sale of food and beverages, notably taking advantage of the repeal of prohibition in 1933.

The company assumed the name 7-Eleven in 1946 to call attention to its extended opening hours of 7 am to 11 pm, seven days a week.

7-Eleven has since expanded significantly across the US and much of the world.

It is among the largest chains of convenience stores worldwide and its Japan and international units are the core assets of 7-Eleven.

Business model of 7-Eleven

Customer segments.

7-Eleven primarily serves customers through its core 7-Eleven businesses. This retail chain targets a broad consumer base that includes:

Urban Consumers , comprising consumers located in larger metropolitan areas and cities who enjoy the convenience and efficiency of shopping at 7-Eleven stores;
Busy Professionals , including workers from a broad range of industries who have little time to shop at more traditional supermarket chains or prepare meals for themselves, taking advantage of 7-Eleven’s numerous snack, coffee, and food options;
Students and Low-Income Workers , comprising younger consumers and lower-income workers who take advantage of 7-Eleven’s cheaper products; and
Families , including families with young children to whom 7-Eleven’s various branded promotions, and snack and beverage products – such as Big Gulp drinks – are particularly appealing.

7-Eleven has an extensive global presence, serving customers across 17 countries worldwide, primarily in Asia and the Americas.

Value Propositions

7-Eeleven’s core business, provides value to its customers in the following ways:

Convenience – 7-Eleven provides a convenient and efficient shopping experience to its customers, offering hot snacks, beverages, and other products quickly and conveniently, as well as offering other services, such as cash withdrawal, from convenient locations in commercial and residential areas;
Customer Service – 7-Eleven provides its customers with exceptional customer service, its staff aim to provide a friendly, in-person assistance to customers and a pleasant shopping experience;
Accessibility and Reach – 7-Eleven operates an extensive network of retail outlets across 17 countries, with an extensive presence across major cities making the company’s services easy to find and easy to access; and
Brand Reputation – 7-Eleven has one of the most recognisable and popular brands in the convenience retail industry, and has a proven track record for providing high-quality, innovative services.

7-Eleven principally serves its customers through its chain of 7-Eleven-branded retail outlets. The company currently operates a network of more than 66,500 stores, primarily across Asia and the Americas.

In these stores, the company serves its customers directly through its extensive team of in-store sales and service personnel, who sell products and services directly to customers.

In addition to selling products directly through its stores, 7-Eleven also offers online shopping through its website at www.7-eleven.com .

This service allows customers to purchase products – including hot snacks and beverages – and have them delivered to their home via the 7NOW delivery service. 7-Eleven also provides customers with an app, through which they are able to access deals, rewards and benefits, and a faster checkout experience.

7-Eleven’s stores are supported by a large distribution and logistics network that includes joint distribution centres and delivery operations.

This infrastructure helps to ensure that the company has fresh food and beverage products to sell to its customers on a daily basis.

Customer Relationships

7-Eleven offers its products to customers on a self-service basis through its online store, and on a largely self-service basis through its physical retail locations.

Customers are served in-store by the company’s sales and service personnel, who sell products to customers directly.

The company seeks to establish longstanding relationships with its customers, by offering and convenient, efficient and pleasant shopping experience. The company’s personnel are key in delivering this.

In addition to the assistance 7-Eleven offers to customers in-store, the company also provides information to customers via its website and operates a dedicated customer service team that is available over the phone to assist customers with a range of issues.

7-Eleven offers a rewards scheme to frequent customers, through which consumers are able to access deals, discounts, and rewards.

The company also uses its mobile app and website to communicate similar offers to customers. 7-Eleven additionally operates a number of social media accounts – including with Facebook, Twitter, Instagram, and Snapchat – through which it interacts directly with consumers, providing updates and handling customer queries and complaints.

Key Activities

7-Eleven functions as a holding company for various retail assets in Japan and abroad. Its principal business is the operation of the 7-Eleven retail chain across Asia and the Americas.

7-Eleven organises its operations into seven business segments: the Convenience Store segment, through which the company operates a large network of convenience stores under the 7-Eleven brand through direct operation and franchising; the Super Store segment, through which the company operates general supermarkets, food supermarkets and specialty stores; the Department Store segment, through which the company operates department stores, notably Sogo & Seibu; the Food Service segment, through which the company is engaged in the restaurant business, the contract food business and the fast food business; the Financial-related segment, through which the company is engaged in the banking service, credit card and leasing business; the Mail Order segment, through which the company is engaged in the mail order business and the sale of gift products; and the Others segment, through which the company is engaged in the IT business, and the gasoline wholesale business.

Key Partners

7-Eleven works closely with a broad range of partners in the operation of its core 7-Eleven business in Japan and overseas.

These partners can be organised broadly into the following categories.

Supplier and Vendor Partners , comprising the various food companies and wholesalers that provide food and beverage products and merchandise that are sold across the company’s 7-Eleven stores, as well as third-party providers of various other services;
Franchise Partners , comprising various companies and business owners that operate 7-Eleven stores on the company’s behalf;
Distribution and Delivery Partners , comprising various logistics and distribution companies that assist in the storage and distribution of products sold across 7-Eleven’s network of stores, as well as delivery service providers that support the company’s home delivery services;
Branding and Marketing Partners , comprising various brands, companies, and organisations that collaborate with 7-Eleven on various co-branding, marketing, and business development projects; and
Strategic Partners , comprising a range of companies and organisations that work with 7-Eleven on various other community, IT, and business projects.

In recent years, 7-Eleven has partnered with WD Partners on ways to update the look and experience of its stores, and with NEC, as part of a strategic IT partnership for the global 7-Eleven network.

Key Resources

7-Eleven’s key resources are its products and inventory, its suppliers and supply chain, its storage and distribution infrastructure, its personnel, and its physical retail locations.

Most key to the company’s operations are the products its offers and its sales personnel, both of which are essential in providing the customer experience for which 7-Eleven is known.

The company’s business also depends on its IT and communications infrastructure – in particular with regard to its online store and mobile app, and various its partnerships.

Cost Structure

7-Eleven incurs costs in relation to the procurement, storage, and distribution of its products across its network of stores around the world, as well the payment of salaries and benefits to its extensive global workforce across its offices, stores, and distribution centres.

The company also incurs costs in relation to the development and maintenance of its IT and communications infrastructure, the management of its partnerships, the procurement of external services and equipment, and the implementation of marketing campaigns.

Revenue Streams

7-Eleven generates revenue primarily through the sale of snacks, beverages, and other convenience products to consumers via its network of retail outlets.

Its revenue is derived principally from direct, in-store sales, as well sales made via its online store and delivery service.

7-Eleven also generates a portion of its revenue through the collection of franchising fees from various companies and business owners that operate 7-Eleven stores as franchisees.

info: Ryuichi Isaka (“Isaka”) has served as President and Representative Director at 7-Eleven since May 2016. He is the company’s principal decision maker and is responsible for steering the company’s overall strategic direction. Isaka is a long-serving employee of 7-Eleven, its subsidiaries, and its predecessor companies. He began his career in 1980, when he joined Seven-Eleven Japan Co. Limited. He went on to hold positions of increasing responsibility within the 7-Eleven Group, including spells as Director and Managing Executive Officer of the Merchandising and Foods Department, President and Representative Director of Seven-Eleven Japan Co. Limited, and President of Store Chain at Seven-Eleven Japan Co. Limited. Prior to assuming his current role, Isaka served as 7-Eleven’s Chief Operating Officer.

info: Katsuhiro Goto (“Goto”) has served as Vice President and Representative Director at 7-Eleven since July 2008. He has also served as a member of the Board of Directors at Seven Bank Limited since June 2018. Goto previously served as Managing Executive Officer and President at 7-Eleven before assuming his current position. Goto has held numerous leadership positions at 7-Eleven, its subsidiaries, and associated companies. This notably includes spells at Ito-Yokado Co. Limited – where he served as Managing Director, Executive Managing Officer and Chief of Executive Secretarial Office. Outside of 7-Eleven, Goto has also served as an external director at Pia Corp and Nippon Television Network.

info: Junro Ito (“Ito”) has served as Director and Executive Managing Officer at 7-Eleven since 2017. He has also been General Manager of the company’s Corporate Development Division since 2016. Ito began his career at Seven-Eleven Japan Co. Limited in 1990, where he held roles of increasing responsibility culminating in a spell as Executive Managing Officer and Director. He moved to 7-Eleven in 2009, and has since held several leadership positions at the company. Ito formerly served as a Senior Officer of Overall Corporate Social Responsibility Department at 7-Eleven from 2011 and as Officer In-charge of Group of Companies Affiliates from 2016.

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7-Eleven Marketing Strategy & Marketing Mix (4Ps)

Marketing Strategy of 7-Eleven analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on 7-Eleven marketing mix, help the brand succeed in the market. Let us start the 7-Eleven Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Quick Glance:

Product Strategy
Pricing Strategy
Place and Distribution Strategy
Promotional and Advertising Strategy
Service Strategy

7-Eleven Product Strategy:

The product strategy and mix in 7-Eleven marketing strategy can be explained as follows:

7-Eleven is a convenience store located worldwide. The 7-Eleven store is known for offering one stop location for fulfilling its customer’s need. The product line in the marketing mix of the company can be divided into food and drinks for breakfast, lunch, evening snack, dinner and late night snack.

The company offers:-

• Sandwiches: Some of the famous offering in this segment are classic cheese burger, cubano melt, double bacon cheddar melt, chicken bacon ranch melt sandwich and many more. There are different sandwich types that the store offers.

• Salads, pizzas, Taquitos are also offered by the brand

• Snacks and sides: Some of the famous offering in this segment are chicken tenders, 7-Select Potato Chips, 7-Select GO!Yum Kettle Popcorn and many more.

• Bakery: Some of the famous offering in this segment are Fresh Brownies, 7-Select Cinnamon Roll, 7-Select Iced Danishes etc.

• Ice cream: Some of the famous offering in this segment are 7-Select Strawberry Crunch Bar, 7-Select Cookie Ice Cream Sandwich etc

• Gas: 7-Eleven was the first store to sell gas for cars etc.

• Wireless accessories and personal care products like Connect by 7-Eleven Powerbank, 7-Select Comb & Pik Set etc.

Image: Wikimedia

7-Eleven Price/Pricing Strategy:

Below is the pricing strategy in 7-Eleven marketing strategy:

7-Eleven stores keep the price of items as competitive with respect to other stores. The generic items includes brand sold on every convenient store like coffee, chips, bread, eggs etc.

But for its privately labelled products like Slurpees, Big Gulp etc the pricing is a bit higher. The reason for increased pricing for its private labelled products is simply because these product are liked by its customers and are exclusively available at 7-Eleven stores only. Moreover as the store offers one-stop shopping solution for all the needs of customers and the time length (7 am to 11 pm and some stores are opened for 24 hours also) at which the store operates, the customer are happy paying some premium pricing for the offering made by 7-eleven stores. This gives an insight in the marketing mix pricing strategy of 7-Eleven stores.

7-Eleven Place & Distribution Strategy:

Following is the distribution strategy in the 7-Eleven marketing mix:

7-Eleven stores was started in Dallas,Texas in the year 1927 but by the end of 1950s the stores were spread to Florida, Maryland, Virginia and Pennsylvania. In the year 1969 the company crossed international border and launched stores in Canada and currently the company has about 70,000+ stores spread across 17 countries. The company also provides its franchise to potential owners which can be applied directly from 7-Eleven website. In order to better serve its customers, the 7-Eleven company has come up with 7-Eleven mobile app which caters to the needs to internet friendly generation of customers. Through the app the 7-Eleven stores are able to better serve customers by delivering food, paying bills online, give reward points to customers etc.

7-Eleven was the first store to sell coffee to go to better serve customers.

7-Eleven Promotion & Advertising Strategy:

The promotional and advertising strategy in the 7-Eleven marketing strategy is as follows:

7-eleven stores follow an Omni-channel approach for its promotional strategy from digital promotion to events to physical store sites promotion. The 7-Eleven company is engaged in enhancing its sales through ‘shoulder’ campaign for its Slurpee product that cited the benefits of the produc t beyond just refreshment. The company has also started celebrating 7-Eleven day as a promotion strategy to get more customers to its stores. On this day the 7-Eleven stores offers free Slurpee from any of its stores. Also the company started offering small Slurpee on fuel purchase to get new customers. The company also offers gift cards, 7-Eleven Universal Fleet Card, Prepaid Cards to give special offers to its customers. 7-Eleven has also been engaged in many events like Shelter Makeover Project, Unisel Voice for Refugee, Slurpee Tasting Test etc to attract the audience and build brand awareness. The company had a new advertising campaign launched in 2021, highlighting the evolution of the brand over the years.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of 7-eleven.

7-Eleven company employees more than 45000 employees and hires college graduates and military veterans among its staff. 7-Eleven company also offer lots of perks and benefits to its employees to sharpen their skills and grow their career within the company with a feeling of satisfaction and safety for not only employees but also their families. 7-Eleven offers health program and dental care program to both its full time and part time employees. The company also awards its employees who have completed their one year in company by profit sharing. 7-Eleven also runs an Employee assistance program to help employees tackle financial or legal problems. 7-Eleven is not only concerned with people within their company but also their customers and people around. 7-Eleven company runs a project A-Game to help in development of youth by imparting education. 7-Eleven also runs a project called operation chill to reduce crime and improve relationship between police and youth.

7-Eleven is one of the largest convenience store which has retail chain of size 60000+ worldwide. A customer can enter the store and buy food, drinks and lot more. Most of the 7-Eleven stores operate 24 hours a day, 7 days a week. So the store offers food varieties for breakfast till midnight. There are various ways to check out from the store. A person can pay through cash or credit/debit card at any 7-Eleven store.7-Eleven also offers a bill payment application. 7 Eleven also offers gift card, prepaid card, 7-Eleven Universal Fleet Card as one of the payment option. The customer can also use 7-Eleven mobile application to order products and pay bills. 7-Eleven has also tied up with logistic companies like DoorDash and Postmates which uses technology to cater to on-demand delivery shopping solution to its customers to serve them better. Even during the Covid pandemic, the stores were open as essential retailers, benefiting all the people.

Physical Evidence:

7-Eleven runs a chain of convenience store globally across 18 countries. As a matter of fact, every two hours a 7-Eleven store is born around the globe. The size of retail chain is now more than sixty thousand. 7-Eleven offers lots of product like food and drinks for breakfast, lunch, evening snack, dinner and late night snack. The company offers generic items like brand sold on every convenient store like coffee, chips, bread, eggs etc and also privately labelled products like Slurpees, Big Gulp etc. Some of the 7-Eleven stores also have arrangement to sit and eat snacks there. 7-Eleven company has come up with 7-Eleven mobile app which caters to the needs to internet friendly generation of customers. Through the app the customers can order food, pay bills online, redeem reward points etc. These store and online application act as a physical evidence for the company. This covers the marketing mix of 7-eleven stores.

About 7-Eleven:

7-Eleven is the world’s first convenience store founded in the year 1927 by J C Thompson. Earlier the store name was Tote’m store but it was later changed to 7 Eleven in the year 1946. The idea behind the name ‘7-Eleven’ is that the store is opened 7 days a week from 7am to 11 pm. The store began its first operation in Dallas, Texas with the aim to sell everyday staples to customers and now the store offers varieties of products like hot food, coffee, salad, energy drinks and lots more.

The company has more than 60000 stores worldwide and operates in 18 countries including Australia, Singapore, Malaysia and many more. The company 7-Eleven also offers franchise to potential owners and is therefore the main reason for its growth around the globe.

This article has been researched & authored by the Content & Research Team . It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse marketing strategy and 4Ps analysis of more brands similar to 7-Eleven. The Marketing Strategy & Mix section covers 4Ps and 7Ps of more than 800 brands in 2 categories.

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The names and other brand information used in the Marketing Strategy & Mix section are properties of their respective companies. The companies are not associated with MBA Skool in any way.

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Definition of SWOT Analysis

What is SWOT Analysis & Matrix? How you can use SWOT Analysis for 7-Eleven

At EMBA PRO , we specialize at analyzing & providing comprehensive, corporate SWOT Analysis of 7-Eleven case study. 7-Eleven "referred as Eleven 7 in this analysis " is a Harvard Business Review (HBR) case study used for MBA & EMBA programs . It is written by Javier Santoma, Carmen Marce and deals with topics in areas such as Technology & Operations Research & development, Technology SWOT Analysis stands for – Strengths, Weaknesses, Opportunities, and Threats that Eleven 7 encounters both internally and in macro environment that it operates in. Strengths and Weaknesses are often restricted to company’s internal - resources, skills and limitations. Opportunities and Threats are factors that are analyzed in view of the prevalent market forces and other factors such as economic , technological, political, legal & environmental, and social, health & safety. According to global executive survey done by Harvard Business Review & Brightline Initiative – Only 20% of the strategic targets set by organizations are realized. Rest 80% of the strategic targets are not achieved because of incomprehensive planning, limited resource allocation, and poor execution. The successful organizations such as Eleven 7 are the one who able to predict market trends better than others, provide resources to develop products and services to leverage those trends, able to counter competitors’ threats, and meet customers’ expected value proposition.

Case Description of 7-Eleven Case Study

Upon analyzing the next-generation ATMs that the 7-Eleven chain of convenience stores was installing in its stores, a consulting firm specializing in payment systems anticipated major changes in the payments sector in the medium and longer term. How would the banks react to further encroachment on their business, already under pressure from traditional competitors and new players backed by the latest technologies?

Case Authors : Javier Santoma, Carmen Marce

Topic : technology & operations, related areas : research & development, technology, case study solution & analysis of 7-eleven, pestel / pest / step analysis of 7-eleven case study, urgent - 12hr.

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What are the Four Elements of SWOT Analysis? How to use them for 7-Eleven case study?

The four key elements of SWOT analysis are - Strengths, Weaknesses, Opportunities & Threats . Eleven 7 can use strengths to create niche positioning in the market, can strive to reduce & remove weaknesses so that it can better compete with competitors, look out to leverage opportunities provided by industry structure, regulations and other development in external environment, and finally make provisions and develop strategies to mitigate threats that can undermine the business model of Eleven 7.

For more detailed SWOT Matrix strategy please go through the detailed analysis of strengths, weaknesses, opportunities, and threats in next section.

What are Strengths in SWOT Analysis

Strengths - 7-Eleven

Strengths are the Eleven 7 capabilities and resources that it can leverage to build a sustainable competitive advantage in the marketplace. Strengths come from positive aspects of five key resources & capabilities - physical resources such as land, building, past experiences and successes, human resources, financial resources, and activities & processes .

- Robust Domestic Market that Eleven 7 Operates in - The domestic market in which Eleven 7 is operating is both a source of strength and roadblock to the growth and innovation of the company. Based on details provided in the 7-Eleven case study – Eleven 7 can easily grow in its domestic market without much innovation but will require further investment into research and development to enter international market. The temptation so far for the managers at Eleven 7 is to focus on the domestic market only.

- Superior product and services quality can help Eleven 7 to further increase its market share as the current customer are extremely loyal to it. According to Javier Santoma, Carmen Marce in 7-Eleven study – there are enough evidences that with such a high quality of products and services, Eleven 7 can compete with other global players in international market.

- High Margins – Eleven 7 charges a premium compare to its competitors. According to Javier Santoma, Carmen Marce of 7-Eleven case study, this has provided Eleven 7 resources to not only thwart competitive pressures but also to invest into research and development.

- Strong Brand Equity and Brand Awareness – Eleven 7 has some of the most recognized brands in the domestic market it operates in. According to Javier Santoma, Carmen Marce , brand recognition plays a significant role in attracting new customers looking for solutions in Research & development, Technology adjacent industries.

- Intellectual Property Rights – Eleven 7 has garnered a wide array of patents and copyrights through innovation and buying those rights from the creators. This can help Eleven 7 in thwarting the challenges of competitors in various industries Research & development, Technology.

- Diverse Product Portfolio of Eleven 7 – The products and brand portfolio of Eleven 7 is enabling it to target various segments in the domestic market at the same time. This has enabled Eleven 7 to build diverse revenue source and profit mix.

- Strong Balance Sheet and Financial Statement of Eleven 7 can help it to invest in new and diverse projects that can further diversify the revenue stream and increase Return on Sales (RoS) & other metrics.

What are Weakness in SWOT Analysis

Weakness- 7-Eleven

Weaknesses are the areas, capabilities or skills in which Eleven 7 lacks. It limits the ability of the firm to build a sustainable competitive advantage. Weaknesses come from lack or absence of five key resources & capabilities - past experiences and successes, activities & processes, financial resources, human resources, and physical resources such as land, building .

- Project Management is too focused on internal delivery rather than considering all the interests of external stakeholders. This approach can lead to poor public relation and customer backlash.

- Inventory Management – Based on the details provided in the 7-Eleven case study, we can conclude that Eleven 7 is not efficiently managing the inventory and cash cycle. According to Javier Santoma, Carmen Marce , there is huge scope of improvement in inventory management.

- Implementation of Technology in Processes – Even though Eleven 7 has integrated technology in the backend processes it has still not able to harness the power of technology in the front end processes.

- Lack of critical talent – I believe that Eleven 7 is suffering from lack of critical talent especially in the field of technology & digital transformation. Eleven 7 is struggling to restructure processes in light of developments in the field of Artificial Intelligence (AI) and machine learning.

- Customer Dissatisfaction – Even though the demand for products have not gone down but there is a simmering sense of dissatisfaction among the customers of Eleven 7 . It is reflected on the reviews on various on-line platforms. Eleven 7 should focus on areas where it can improve the customer purchase and post purchase experience.

- Low Return on Investment – Even though Eleven 7 is having a stable balance sheet, one metrics that needs reflection is “Return on Invested Capital”. According to Javier Santoma, Carmen Marce in areas Research & development, Technology that Eleven 7 operates in the most reliable measure of profitability is Return on Invested Capital rather than one favored by financial analysts such as – Return on Equity & Return on Assets.

What are Opportunities in SWOT Analysis

Opportunities- 7-Eleven

Opportunities are macro environment factors and developments that Eleven 7 can leverage either to consolidate existing market position or use them for further expansion. Opportunities can emerge from various factors such as - changes in consumer preferences, political developments & policy changes, increase in consumer disposable income, technological innovations, and economic growth .

- Increase in Consumer Disposable Income – Eleven 7 can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. According to Javier Santoma, Carmen Marce of 7-Eleven case study, Eleven 7 can use this trend to expand in adjacent areas Research & development, Technology.

- Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Eleven 7 is in prime position to tap on those opportunities and grow the market share. According to Javier Santoma, Carmen Marce , growth in international market can also help Eleven 7 to diversify the risk as it will be less dependent on the domestic market for revenue.

- Growing Market Size and Evolving Preferences of Consumers – Over the last decade and half the market size has grown at brisk pace. The influx of new customers has also led to evolution of consumer preferences and tastes. This presents Eleven 7 two big challenges – how to maintain loyal customers and how to cater to the new customers. Eleven 7 has tried to diversify first using different brands and then by adding various features based on customer preferences.

- Developments in Artificial Intelligence – Eleven 7 can use developments in artificial intelligence to better predict consumer demand, cater to niche segments, and make better recommendation engines.

- Increasing Standardization – Eleven 7 can leverage this trend to reduce the number of offerings in the market and focus the marketing efforts on only the most successful products.

- Reducing Cost of Market Entry and Marketing into International Markets – According to Javier Santoma, Carmen Marce, globalization along with boom in digital marketing and social media has considerably reduced the risks of market entry and marketing in international market.

What are Threats in SWOT Analysis

Threats- 7-Eleven

Threats are macro environment factors and developments that can derail business model of Eleven 7. Threats can emerge from various factors such as - technological innovations, increase in consumer disposable income, political developments & policy changes, changes in consumer preferences, and economic growth .

- Increasing bargaining power of buyers – Over the years the bargaining power of customers of Eleven 7 has increased significantly that is putting downward pressure on prices. The company can pursue horizontal integration to consolidate and bring efficiencies but I believe it will be a short term relief. According to Javier Santoma, Carmen Marce , Eleven 7 needs fundamental changes to business model rather than cosmetic changes.

- Culture of sticky prices in the industry – Eleven 7 operates in an industry where there is a culture of sticky prices. According to Javier Santoma, Carmen Marce of 7-Eleven case study, this can lead to inability on part of the organization to increase prices that its premium prices deserve.

- Growing Protectionism - Eleven 7 should hedge the risk against growing protectionism ranging from – storing data into international market to diversifying risk by operating into countries at different economic cycle.

- International Geo-Political Factors – Since the Trump election, geo-political factors have taken a turn for growing protectionism. Developments such as Brexit, Russian sanctions, foreign exchange crisis & inflation in Venezuela, lower oil prices etc are impacting international business environment. Eleven 7 should closely focus on these events and make them integral to strategy making.

- Credit Binge post 2008 Recession – Easy access to credit can be over any time, so Eleven 7 should focus on reducing its dependence on debt to expand. The party has lasted for more than a decade and rollback from Fed can result in huge interest costs for Eleven 7.

- Squeezing Middle Class in Developed and Developing World – The growing inequality is one of the biggest threat to not only globalization but also to capitalism. Eleven 7 first hand witnessed the impact of it where it has seen lower demand of its products from middle class customers in US and EU market.

5C Marketing Analysis of 7-Eleven

4p marketing analysis of 7-eleven, porter five forces analysis and solution of 7-eleven, porter value chain analysis and solution of 7-eleven, case memo & recommendation memo of 7-eleven, blue ocean analysis and solution of 7-eleven, marketing strategy and analysis 7-eleven, vrio /vrin analysis & solution of 7-eleven, pestel / step / pest analysis of 7-eleven, case study solution of 7-eleven, swot analysis and solution of 7-eleven, references & further readings.

Javier Santoma, Carmen Marce (2018) , "7-Eleven Harvard Business Review Case Study. Published by HBR Publications.

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Business Management & Marketing

Pestle analysis of 7-eleven .

PESTLE Analysis of 7-Eleven. 7-Eleven is a retail multinational convenience store brand. Joe C. Thompson laid the foundation of the retail company in 1927. The headquarter of the retail multinational company is in Dallas, Texas, USA. The convenience store brand has been through different names in various periods in history;

Southland Ice Company – 1927
Tote’m Stores – 1928 to 1946
Southland Corporation – 1961 to 1999
7-Eleven – 2005 to present

According to an estimate, the annual revenue of 7-Eleven in 2022 was 38.303 billion dollars; out of which, the net income of the company was 1.046 billion dollars. Approximately 135,332 people are working for the company to manage its worldwide operations.

Some of the top competitors of 7-Eleven are as follows;

Alimentation

Today, we’ll discuss the pestle analysis of 7-Eleven. It would analyze the political, economical, social, technological, and legal factors impacting the company. Here’s the pestle analysis of 7-Eleven as follows;

Political Factors Impacting 7-Eleven

Some of the key political factors in the pestle analysis of 7-eleven are as follows;

Corruption & Bureaucracy

According to an estimate, 7-Eleven is operating its business in roundabout 20 countries with a network of over 78,029 stores. The retail brand has to deal with various types of governments and bureaucratic environments. The protests, bureaucratic corruption, and violent environment impact the business of the retail brand in the hosted country where it is running its operations.

Government Policies

Government regulations, regulating institutions, global pressure, import trade policies, and different types of political reforms and amendments have a direct impact on the growth of the retail brand 7-Eleven. For instance, Victorian Parliament launched a new shop trading bill in 1996, and it focused on giving freedom to businesses however they plan to operate their business in terms of timing and schedule.

The shop trading bill allowed businesses and companies to run their operations 24 hours a day and 7 days a week. It may seem interesting, but it had a very bad impact on the business of 7-Eleven. It is because it compelled the company to relocate to the remote areas of the city, where the demand was high and competition was.

Victorian Tobacco Act

The focus of the Victorian Tobacco Act of 1987 was to decrease smoking and probation tobacco sales to young people under 18. It had a very bad impact on the cigarette sale of the company 7-Eleven at the mass scale.

Economical Factors Impacting 7-Eleven

Some of the main economical factors in the pestle analysis of 7-eleven are as follows;

Skilled Workforce & Salaries

The growth and productivity of US employees have increased to a great extent for the past two decades. But their salaries and payment structures haven’t improved to the same level, because of the highly competitive environment. However, it has allowed the company to hire a skilled workforce and employees at a competitive price range.

Economical Growth

If we look at the GDP growth of different developed countries, then it has increased to a great extent. But 7-Eleven hasn’t taken advantage of this opportunity in terms of targeting a new segment of the customer market and expanding its product portfolio. In order to successfully top into the opportunity, the retail brand should carefully analyze the customer trends and their value proposition.

Government Spending

Government spending plays a huge role in the growth of businesses and companies. For instance, it would amplify the sale of the company 7-Eleven in the short term but would increase the risk of currency depreciation in the long term. Therefore, the retail brand should keep in mind the pros and cons of all the steps and opportunities.

Social Factors Impacting 7-Eleven

Some of the key social factors in the pestle analysis of 7-eleven are as follows;

Customer Trends

Consumer trends and preferences are always changing just like the weather; they like something and get tired of something else. The company should in mind customer trends and preferences. For instance, understanding the attitude of customers gives you a better insight like baby boomers have got interested in leisure activities.

Demographic Insight

Demographic insight is the other key factor that the company should keep in mind while developing policies and studying trends. For instance, the elderly population in the US and Europe is increasing, and the retail brand should develop products and services to cater to their needs and wishes for the growth of the business.

High Education Level

Education plays a significant role in the job and income level of employees. For instance, highly educated people would have better jobs and better incomes, and they would demand luxury products. That’s how demographic offers you a better insight into how 7-Eleven should take advantage of the business opportunities.

Culture & Authority

The attitude and behavior of the target customer market towards authority are different in different cultures. For instance, the Asian customer market respect and obey authority, whereas the Western market does not follow authority. Such factors help the company to decide what type of marketing strategies the company should follow.

Technological Factors Impacting 7-Eleven

Some of the main technological factors in the pestle analysis of 7-eleven are as follows;

Digitalization

Automation and digitalization have brought revolutionary changes in the retail industry and made various processes and operations efficient and effective. For instance, mobile and online payments have the transaction process much easier and smoother. Chinese market and retail sector are much more advanced than the US in this regard.

User-Friendly System

7-Eleven should launch mobile applications, a new system, and employ other latest technological equipment to offer a user-friendly experience to its customers. Offering a better and user-friendly experience is the core of any successful business. For instance, the retail brand should launch a new section by the name of “the cellar” for wine and beer sales.

New Technology

Employing the latest technology at the check-in and check-out point would allow the company to offer a better customer experience. It should be simple and easy without any delay and time-consuming because customers want a simple process.

Legal Factors Impacting 7-Eleven

Some of the key legal factors in the pestle analysis of 7-eleven are as follows;

Data Privacy Laws

The consumer market has become highly cautious about data privacy and protection regulations, and 7-Eleven should comply with such laws. For instance, the EU has introduced many laws and regulations about data privacy and it prohibits companies from transferring data outside of the EU.

Immigrant Exploitation

7-Eleven has recently filed a lawsuit against the company’s franchisee claiming that he had illegally transferred hundreds of thousands of dollars during the period of four years. The company won the legal battle and terminated the contract with him over the issues of immigrant exploitation and making cash-back agreements with its employees.

Corruption of a Franchisee

Filing the lawsuits and taking legal actions against 7-Eleven’s own employees have created an honest and transparent image of the company toward customers.

Environmental Factors Impacting 7-Eleven

Some of the main environmental factors in the pestle analysis of 7-eleven are as follows;

Member of Green Organizations

7-Elevent is a member of the world’s two leading environmental organizations;

Conservation International & Retail Industry Leadership Association
CI’s Business

They both are non-profit organizations, and their focus is on building innovative technology to save nature and the environment without any exploitation.

Conclusion: PESTLE Analysis of 7-Eleven

After an in-depth study of the pestle analysis of 7-eleven; we have realized that 7-eleven is the world’s leading retail brand. If you are learning about the external environmental impact on the company, then you should keep in mind the abovementioned political, economical, social, technological, legal, and environmental factors.

References

Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.

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7-Eleven SWOT Analysis / SWOT Matrix

Posted by David Williamson on Dec-05-2018

A SWOT analysis is a framework that is used to analyze a company’s competitive positioning in its business environment. This can be used by 7-Eleven, and will involve the identification of its internal Strengths (S) and Weaknesses (W) followed by the identification of the Opportunities (O) and Threats (T) it faces in its extensivelyrnal business environment.

7-Eleven is among the leading firms within its industry, and it needs to retain this position. 7-Eleven is carefully reviewing its SWOT analysis and using it to make strategic decisions. For a SWOT analysis to be conducted of the firm, an interactive process needs to be undertaken by coordinating among all the departments of the firm such as finance, marketing, operations, human resource, logistics, strategic planning, management information systems etc.

A SWOT matrix is a 2x2 matrix that has the internal strategic factors listed in the first row; Strengths and Weaknesses. It has the external strategic factors listed in the second row; Opportunities and Threats. This SWOT strategic framework allows company managers to easily view all of the company’s strengths, weaknesses, opportunities and threats in one matrix.

The SWOT analysis matrix helps in the development of 4 types of strategies by managers. These are:

Strengths-Opportunities Strategies (SO) : This involves using internal strengths to take advantage of opportunities.
Weaknesses-Opportunities Strategies (WO) : This involves improving on the company’s weaknesses by making use of the opportunities.
Strengths-Threats Strategies (ST) : This involves the using of strengths to minimize the weaknesses.
Weaknesses-Threats Strategies (WT) : This involves the elimination of weaknesses to combat the threats.

The main objective of the SWOT analysis is to help in identifying the strategies that can be used by the company to build on its strengths, eliminate its weaknesses while making the most of opportunities and countering threats.

SWOT Analysis of 7-Eleven

Strengths of 7-eleven.

Distribution and Reach: 7-Eleven has a large number of outlets in almost every state, supported by a strong distribution network that makes sure that its products are available easily to a large number of customers in a timely manner.
Cost Structure: 7-Eleven’s low cost structure helps it produce at a low cost and sell its products at a low price, making it affordable for its customers.
Dealer Community: 7-Eleven has a strong relationship with its dealers that not only provide them with supplies but also focus on promoting the company's products and training.
Financial Position: 7-Eleven has a strong financial position with consecutive profits in the past 5 years, along with accumulated profit reserves that can be used to finance future capital expenditures.
7-Eleven has a large asset base, which provides it with better solvency.
Return on Capital Expenditure: 7-Eleven has been successfully able to generate positive returns on the capital expenditure it has incurred on various projects in the past.
Automation: of various stages of production has allowed the more efficient use of resources and reducing costs. It also allows for consistency in quality of its products and provides the ability to scale up and scale down production as per the demand in the market.
Skilled Labor force: 7-Eleven has invested extensively in the training of its employees that has resulted in it employing a large number of skilled and motivated employees.
7-Eleven has a diversified workforce, with people of many geographical, racial, cultural and educational backgrounds that help the company by bringing in diverse ideas and methodologies of doing things.
7-Eleven has qualified and accredited professionals working under in its team.
Entering new markets: 7-Eleven’s innovative teams have allowed it to come up with new products and enter new markets. It has been successful in past, in most of the initiatives it has taken in new markets.
Social Media: 7-Eleven has a strong presence on social media with more than millions of followers on the three most famous social media platforms: Facebook, Twitter and Instagram. It has high levels of customer engagement on these platforms with low customer response time.
Website: 7-Eleven has a well-functioning and interactive website that draws a large number of internet traffic and sales.
Product Portfolio: 7-Eleven has a large product portfolio where it provides products in a large range of categories. It has a number of unique product offerings that are not provided by competitors.
The geography and location of 7-Eleven provide it with a cost advantage in serving its customers, when compared to that with the competition.
7-Eleven has a well-established IT system that ensures efficiency in its internal and external operations.
7-Eleven owns a number of intellectual property rights that include trademarks and patents. These allow it exclusivity over its products and competitors cannot copy or reverse engineer them.
7-Eleven is a brand that has been in the market for years, and people are aware of it. This makes its brand awareness high.
Its products have maintained quality over the years and are still valued by customers, who find it as good value for the amount of money that they pay.
Partnerships: Strategic partnerships are established by 7-Eleven with its suppliers, dealers, retailers and other stakeholders. This allows it to leverage them if need be in the future.

Weaknesses of 7-Eleven

Research and Development: Even though 7-Eleven is spending more than the average research and development expenditure within the industry, it is spending way less than a few players within the industry that have had a significant advantage as a result of their innovative products.
High Day Sales Inventory: The time it takes for products to be purchased and sold are higher than the industry average, meaning that 7-Eleven builds up on inventory adding unnecessary costs to the business.
Rented Property: A significant proportion of the property that 7-Eleven owns is rented rather than purchased. It has to pay large amounts of rent on these adding to its costs.
Low current ratio: The current ratio that shows the company’s ability to meet its short term financial obligations, is lower than the industry average. This could mean that the company could have liquidity problems in the future.
The company has low levels of current assets compared to current liabilities, and this can create liquidity problems for it in operations.
Cash flow problems: There is a lack of proper financial planning at 7-Eleven regarding cash flows, leading to certain circumstances where there isn’t enough cash flow as required leading to unnecessary unplanned borrowing.
Integration: 7-Eleven's current structure and culture have resulted in the failure of various mergers aimed at vertical integration.
Diversification in the workforce: The workforce at 7-Eleven is concentrated with mostly local workers, and low amounts of workers from other racial backgrounds. Lack of diversification makes it difficult for employees from different racial background to adjust at the workplace, leading to loss of talent.
Market Research: 7-Eleven has not conducted market research within the market that is serves since the past 2 years. As a result, it is making decisions based on 2 years old data, while customer needs may have evolved over time.
High employee turnover rates: 7-Eleven has a higher employee turnover rate compared to competitors. This means that it has more people leaving the job, and as a result, it is spending more on training and development as employees keep leaving and joining.
Quality Control: 7-Eleven has a lower budget for its quality control department than competitors. This leads to lack of consistency and the possibility of damage to quality across its various outlets.
Lack of legal experience and legal department employees are not highly qualified.
A few products have a high market share, while most of the products have a low market share. This reliance on a few products makes 7-Eleven vulnerable to external threats if these few products suffer for any reason.
The workload is a high per worker as there are fewer workers than the actual work required. This puts workers under psychological stress and is likely to be less productive.
Worker morale is low due to company culture and politics that have grown in recent years.
Competition and qualified employees have been leaving the organisation in recent years, which could mean a shortage of good talent for the company in the upcoming years.
The decision making is highly centralized, and decisions by teams need to be approved by certain officials. This reduces efficiency in operations by making them more time consuming. It also leads to reduced innovation.
The performance appraisal is not in a systematic manner. People are often not appraised for their performance. This leads to lower work morale and lack of promotion opportunities for employees.

Opportunities of 7-Eleven

Internet: there has been an increase in the number of internet users all over the world. This means that there is an opportunity for 7-Eleven to expand their presence online; by using the internet to interact with its customers.
E-commerce: There has been a new trend and a growth in sales of the e-commerce industry. This means that a lot of people are now making purchases online. 7-Eleven can earn revenue by opening online stores and making sales through these.
Social Media: there has been an increase in the number of social media users worldwide. The three social media platforms; Facebook, Twitter and Instagram, have shown the greatest number of increase in monthly active users. 7-Eleven can use social media to promote its products, interact with customers and collect feedback from them.
Technological developments: technology comes with numerous benefits among many departments. Operations can be automated to reduce costs. Technology enables better data to be collected on customers and improves on marketing efforts.
There has been an increase in average household income along with an increase in consumer spending following the recession. This will result in growth in 7-Eleven’s target market with new customers that can be attracted towards the business.
Population: the population has been growing and is expected to grow at a positive rate for the upcoming years. This is beneficial for 7-Eleven as there will be an increase in the number of potential customers that it can target.
Inflation: The inflation rate has been low and is expected to remain low in the next two years. This is an opportunity for 7-Eleven as its cost of inputs would remain low for the next two years.
Interest rate: Lower interest rates than compared to previous years provides an opportunity for 7-Eleven to undergo expansion projects that are financed with loans at a cheaper interest rate.
Green government drive: this provides an opportunity for 7-Eleven for the sale of 7-Eleven's products to federal and state government contractors.
Transport Industry: the transport industry has been flourishing in the past few years, and shows growth potential in the future. This has reduced the costs of transportation, which is beneficial for 7-Eleven as it will lower its overall costs.
Tax policy: the governments’ reduction in tax rate is beneficial for 7-Eleven as a lower amount would be expensed out as a tax.
The government has also announced a subsidy on the sale of environmentally friendly goods in this sector. 7-Eleven can focus on these environmentally friendly products and make use of this opportunity.
Tourism: growth in tourism is beneficial for 7-Eleven as it will provide new potential customers that it can target in order to gain market share.
Skilled workers: increase in education and training by numerous institutes has increased the amount of skilled labor available within the country. This means that if 7-Eleven is able to hire skilled labor, it would have to spend less on training and development, therefore, saving costs.
The growth in consumer spending in the economy is likely to increase consumption for 7-Eleven's products.
A number of new niche markets have opened up that are growing. 7-Eleven can sell products in these markets and take advantage.
Globalisation: Increased globalisation does not restrict 7-Eleven to its own country. It can extend its operations to other countries, entering into these markets and making use of the opportunities that lie in these markets.
Consumers within the industry are becoming more conscious of health, and this is a segment that is growing. 7-Eleven can take advantage by manufacturing products that are beneficial to customer's health.
Trade barriers have been reduced on the import of goods. This will reduce the costs incurred on inputs for production.
Regulations have loosened in recent years making it easier for businesses to carry out their operations.

Threats of 7-Eleven

Technological developments by competitors; New technological developments by a few competitors within the industry pose a threat to 7-Eleven as customer attracted to this new technology can be lost to competitors, decreasing 7-Eleven’s overall market share.
Suppliers: The bargaining power of suppliers has increased over the years with the decrease in the number of suppliers. This means that the costs of inputs could increase for 7-Eleven.
New entrants: there have been numerous players that have entered the market and are gaining market share by gaining existing companies’ market share. This is a threat to 7-Eleven as it can lose its customers to these new entrants.
Increasing competition: there has been an increase in competition within the industry putting downward pressure on prices. This could lead to reduced revenue for 7-Eleven if it adjusts to the price changes, or loss of market share if it doesn’t.
Exchange Rate: the exchange rate keeps fluctuating and this affects a company like 7-Eleven that has sales internationally, while its suppliers are local.
Political uncertainties in the country prove to be a barrier in business, hindering performance at times and making the business incur unnecessary costs.
The fluctuating interest rates in the country do not provide a stable financial and economic environment.
Consumer tastes are changing, and this puts pressure on companies to constantly change their products to meet the needs of these customers.
Regulations on international trade keep changing, and this requires compliance by companies if they are to operate globally.
Substitute products available are also increasing, which is threat collectively for the whole industry as consumption of current products decrease.
The rise in prices of fuel has increased in the input costs for 7-Eleven. These costs have also increased as other industries that provide inputs for this company also have suffered from increasing fuel prices, thereby charging more.
Increased promotions by competitors have been a threat for 7-Eleven. On most media, there is more clutter than ever, and customers are bombarded with multiple messages. This reduces the effectiveness of promotional messages by 7-Eleven.
Constant technological developments require the workforce to be trained accordingly as the inability to keep up with these changes can lead to loss of business for 7-Eleven.

Limitations of the SWOT Analysis of 7-Eleven

Even though the SWOT analysis is an effective tool, it has certain limitations as well.

Its major limitation is the fact that there can be an overlap of strengths and weakness, with a single factor being both a strength and a weakness. For example, a large number of outlets can be a strength in a growing economy or a weakness if the economy is going through a recession.
The matrix is not an end as it does not show how to achieve the objectives. It should be used as a starting point to make strategic decisions.
The assessment done through a SWOT analysis is a static one and does not take into consideration the changes that take place in the competitive environment.
The factors listed down in a SWOT analysis may be overemphasized by the company.
There are certain interrelationships between the internal and external factors that the SWOT Matrix overlooks.

Weighted SWOT analysis of 7-Eleven

In response to the above mentioned limitations, a weighted SWOT analysis can be conducted for 7-Eleven that involves assigning weightage to each of the strengths and weaknesses mentioned in the SWOT analysis for 7-Eleven. It also involves estimating the probability of an event occurring in the external environment. This allows managers to focus on the important factors, and give less consideration to the less important ones.

The limitation of the weighted SWOT analysis is that it does not look at how holistically different factors affect the business when combined.

Example of weighted SWOT analysis

For 7-Eleven, the strength for strong distribution can be given a higher weight than the strength for the skilled labor force.

Advanced SWOT analysis/SWOT Matrix

7-Eleven SWOT analysis lists down the strengths, weaknesses, opportunities and threats to any organisation, but does not tell management what can be done by these. To overcome this limitation and help develop strategies that are appropriate, an advanced SWOT analysis or TOWS matrix is used. This lists down the Strengths-Opportunities (SO) strategies that involve using strengths to take advantage of opportunities. It lists the Strengths-Threats (ST) strategies that involve using strengths to fight of threats. It involves the Weaknesses-Opportunities strategies that involve converting weaknesses to strengths by using opportunities. Lastly, Weakness-Threats (WT) strategies involve overcoming weaknesses to avoid threats.

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Warning! This article is only an example and cannot be used for research or reference purposes. If you need help with something similar, please submit your details here .

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7-Eleven SWOT Analysis
Here is the SWOT analysis for 7-Eleven. A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture's success or failure and analyzing them to develop a strategic plan.
7-Eleven SWOT Analysis: A Conveniently Detailed Report
7-Eleven History. The American convenience store chain 7-Eleven, Inc. was established in Dallas, Texas, in 1927. Initially known as Southland Ice Company, the business ran an icehouse where customers could purchase ice blocks to keep their food cold. However, Joe C. Thompson and John Jefferson Green, the company's founders, realized in 1927 that they could sell essential groceries like milk ...
Comprehensive SWOT Analysis of 7-eleven
Over the years 7-Eleven has invested in constructing a robust emblem portfolio. The SWOT evaluation of 7-Eleven simply underlines this fact. This emblem portfolio may be extraordinarily beneficial if the agency desires to enlarge into new product categories. 2. Weaknesses of 7-ELEVEN.
7-Eleven Case Study: The Untold Story of the World's First Convenience
Decline Phase (1980 -1992) During the 1980s, the competition took a peak as supermarkets started opening till late, and more and more gasoline stations started converting into small convenience stores. This point in the case study highlights a tragic point in the life cycle of 7 Eleven. The company had failed to invest in Information Technology ...
7-Eleven SWOT Analysis
Eleven is known for its customer focus in all its vision and focus areas. It invests heavily in support which help its stakeholders like customers, franchisee owners, employees to align with the vision which 7-eleven has. Above are the strengths in the SWOT Analysis of 7-Eleven. The strengths of 7-Eleven looks at the key internal factors of its ...
Example SWOT for 7-Eleven
Company Overview. 7-Eleven has its head office in Dallas, Texas, USA. It was founded in 1927 and now has over 50,000 outlets worldwide. Since the early 1990s, 7-Eleven has been controlled by Japanese interests and its parent company, Seven & I Holdings, was established as the holding company for 7-Eleven in 2005.
7-Eleven
7-Eleven was established in September 2005 as a holding company for the 7-Eleven chain of convenience stores, as well as several other retail brands in Japan. 7-Eleven is the largest retail and distribution business in Japan, it's principal asset, however, is the 7-Eleven brand. 7-Eleven traces its roots back to 1927, when several icehouse ...
SWOT Analysis of 7-Eleven
Key statistical facts and figures about 7-Eleven are as follows; The annual revenue of the retail chain brand was 38.303 billion US dollars by the end of 2022. Out of which, the net income of the company was 1.046 billion US dollars. Roundabout 135,332 employees are managing its worldwide operations. The top Competitors of 7-Eleven are as follows;
7-Eleven Marketing Strategy & Marketing Mix (4Ps)
About 7-Eleven: 7-Eleven is the world's first convenience store founded in the year 1927 by J C Thompson. Earlier the store name was Tote'm store but it was later changed to 7 Eleven in the year 1946. The idea behind the name '7-Eleven' is that the store is opened 7 days a week from 7am to 11 pm.
Analysis of Financial Performance: 7ELEVEN SDN. BHD
7ELEVEN (7 eleven) is well-known franchise in the world as in Malaysia. The purpose of this study is to analyse the financial performance of 7 eleven for two consecutive years, 2019 and 2020.
MBA SWOT : 7-Eleven SWOT Analysis & Matrix
SWOT Analysis stands for - Strengths, Weaknesses, Opportunities, and Threats that Eleven 7 encounters both internally and in macro environment that it operates in. Strengths and Weaknesses are often restricted to company's internal - resources, skills and limitations. Opportunities and Threats are factors that are analyzed in view of the ...
Strategic Management of 7 Eleven Company
1) Recruitment planning: - Recruitment process in 7 eleven, first step is the recruitment planning. According to a vacant post, they create a vacant list with job specifications, education and experience skill (Gai et al. 2018). Experience is the most valuable factor for this company. Identifying vacancy:-.
Seven Eleven Logistics Strategy: Supply Network, Warehousing, Order
said supply chain planning contributed major portion to Seven-Eleven's logistics strategy (Diyasa and et. al. 2021). Seven-eleven's warehousing For Seven-eleven's warehousing system, it would be rough to say but the company enabled DC's in form of warehouse facilities to enable time effective strategies. In light to the
PESTLE Analysis of 7-Eleven
7-Eleven - 2005 to present. According to an estimate, the annual revenue of 7-Eleven in 2022 was 38.303 billion dollars; out of which, the net income of the company was 1.046 billion dollars. Approximately 135,332 people are working for the company to manage its worldwide operations. Some of the top competitors of 7-Eleven are as follows;
Opportunities And Strengths And SWOT Analysis Of 7-Eleven
The following SWOT analysis captures the key Strengths and weakness within 7-eleven and described the Opportunities and threat facing 7-Eleven. STRENGTHS. i. Convenient locations. 7-Eleven has over 50,000 outlets throughout the world, which gives them a significant location and convenience advantage. Obviously, being a convenience store, their ...
Seven Business Lessons from 7-Eleven
Here are seven management lessons that I learned from this Undercover Boss episode: 1. Know your customers. DePinto's first stint as undercover boss was in Shirley, NY where he worked the early morning shift at the store that sells the most coffee among all the 7-Eleven stores.
BAC 2664
1.0. INTRODUCTION 7-Eleven Malaysia Holdings Berhad through its subsidiary 7-Eleven Malaysia Sdn. Bhd. is the owner and operator of 7-Eleven stores in Malaysia. Incorporated on 4 June 1984, 7-Eleven Malaysia has made its mark in the retailing scene and has been a prominent icon for over 28 years. 7-Eleven Malaysia is the single largest convenience store chain with more than 2,240 stores ...
7-Eleven SWOT Analysis / SWOT Matrix
A SWOT analysis is a framework that is used to analyze a company's competitive positioning in its business environment. This can be used by 7-Eleven, and will involve the identification of its internal Strengths (S) and Weaknesses (W) followed by the identification of the Opportunities (O) and Threats (T) it faces in its extensivelyrnal business environment.
7- Eleven Supply Chain Official Report
Purpose of research assignment. 7-Eleven supply chain management research is made for the aim of consolidating the knowledge and skill after learning Global Supply Chain Management course. This was created for analysing the flexibility of 7-Eleven supply chain. Moreover, we want to clarify 7-Eleven's supply chain issues and give recommendation.
Assignment 1 (Conclusion and recommendations)
INDIVIDUAL ASSIGNMENT 2 - Written Report; Preview text. Conclusions and recommendations Recommendations Recommendations Incorporated into Annual Objectives. The new strategy for developing ready-to-eat products is meant to guard 7-Eleven's competitive position, which it's held for the past thirty years. The newcomers bring a singular marketing ...
MGT162 Individual Assignment
MGT162(individual assignment) Acknowledgement & Objective; Assignment Individual IMD312 UiTM MMMM; ... 7-Eleven Inc. has been at the forefront of important trends in the convenience store sector for 91 years. 7-Eleven has a long list of "firsts," including the first self-serve soda fountain, 24/7 store hours, coffee offered in to-go cups, and ...
Assignment on 7 Eleven PDF
View document. Management of Companies with Unrelated Diversification. | 7. 2581. 585. View document. This assignment on 7 eleven. The company serves its customers directly through its extensive team of in-store sales and service personnel.
L1 G5 AEON and 7- Eleven
In 2020, 7-Eleven shown a lower dividend yield of 1 %, whereas Aeon has a dividend yield of 1 %. Owing to these figures, 7-Eleven seems to be a growth stock. In brief, 7-Eleven had a lower yielding and more reliable dividend yield ratio from 2017 to 2020. 2 Liquidity- Quick ratio