7-Eleven in Taiwan: Adaptation of Convenience Stores to

New Market Environments

Jinglun Yu 825-145-170

Ran Wu 825-118-003

Liudmila Shumilina 825-120-066

Xudong Hua 825-114-796

Victor Khurumov 825-869-860

Oguejiofor Luke Obi 824-380-604

Introduction

• Started 1927

• World largest convenience store chain

• Store in USA and Canada

• Over 46,000 stores outside North America

• Localisation of services

How the concept convenience-store

evolved in the United States • service from 7am to 11pm

24/7

• changes in work and routines in the United States

• more convenience

An universal concept or not ?

• Specific location

• Have a distinctive logo

• Product choice and differentiation

• Floor plan

Adjustments to the local market

• Vertical zoning

• Special products

Three major features that created standard for 7-Eleven in US:

• 1. The stores in the 7-Eleven chain were separated from one another by long distances

• 2. Areas where people congregated, such as street corners, became the natural sites for 7- Eleven locations, which, for similar reasons, veered toward gas stations in the United States. Most of 7-Eleven are detached buildings that often was constructed from a scratch according to the standard concept.

• 3. 7-Eleven stores were largely located in U.S. rural areas, where population density was low. As a result, customers invariably drove to a store”

7-Eleven standards in US

• Space

• Shape

• Floor plan

• Product choice

7-Eleven in Taiwan

• Individualized in floor plans and building types

• Twice smaller than in US

• Customized product assortment

Localization

• Localization Localization should be understood as a process rather than a goal. One thing to adapt to their current environment and do change, based on the actual situation, try to find their own way. • Localization of 7-Eleven in Taiwan

strengthened the concept of convenience stores.

Localization

• Wide coverage--- 5000 stores in Taiwan, close to residential area, open 24 hours, 70% of customers walk to stores within 10 minutes.

• Do good to reduce capital cost and operation stress.

• Steps to achieve localization: a) Add local flavor food (i.e. oden) b) 7-11 offered several handy services (payment, delivery, APPs)

Competitive Advantages

• Factor conditions

• Uni-President Enterprises Corporation

• The largest food production company in Taiwan

Demand conditions

• High population density

• Fast living phase

• Popular nightlife

Related and supporting industries

• Food industryHigh quality, import oriented

• E-commerce

• Mobile communication

• Banking

• Tourist

• Transport

Competitive Advantages

Competitive Advantages

• Firm strategy, structure and rivalry

Vast number of services

High density of stores

Non-rest business hours

7-Eleven Taiwan Operational

FormatCan we replicate 7 Eleven Taiwan’s operational format in other countries?

• Population Density

• Low Birth Rate

• Large Working Class

Lesson Learned

• The convenience store emerged on the demand of the customers for a rapid and easy access to the merchandises they wanted in a hurry.

• 7-Eleven Taiwan has the same universal characteristics as it has in the US, the convenient location, wide variety of quality products and fast customer service. However, the real reason that drove the success is the product localization and service differentiation.

• Franchise is an excellent way of expending business to other countries when the business is very cohesive to the life style of people like convenience stores.

Lesson Learned

• The success of 7-Eleven Taiwan doesn’t mean the same model can be copied to other countries and regions simply. So when expending the business to another country or region, be careful about where the host country is, who the residents are and what does the consumers there really need.