7-Eleven, Inc. Case
Posing to be a successful division of the organization, the Big Eats Deli sandwiches at 7-Eleven, Inc. were pleased with the continued progress this sector offered (Bell & Hagan, 2012). Utilizing a strategy determined in a cross-cultural market, 7-Eleven CEO James Keyes found it to be intriguing and challenging to implement such a plan in the United States. However due to strong competition amongst convenience stores in the United States and different eating habits of consumers, this proved to be a more difficult task than anticipated (Bell & Hagan, 2012).
Major Differences
There are many differences between the situations in Japan and the U.S. that made the Japanese 7-Eleven experience with prepared foods significantly different than that of the U.S. stores. First, “convenience stores in Japan faced little competition from gas station mini-markets, and until the early 1990s they benefited from government regulation that limited the size and operating hours of large- and medium-size stores” (Bell & Hogan, 2004, p. 4). Contrary to Japan, 7-Eleven stores in the U.S. were faced with fierce competition from a variety of convenience stores with very similar business models. Convenience stores in Japan made a commitment to provide expediency in all aspects of daily life. Such stores sold takeaway lunch boxes, rice balls, ready-to-serve dishes, bread and various drinks (Bell & Hogan, 2004). Japanese stores based their business model on customer needs and convenience. “To ensure that customers received fresh quality products, food items were prepared continuously and delivered to the stores three times daily.
The strategic locations of preparation plants combined with the high store density, required minimal travel distance and therefore facilitated the speed and ease of deliveries (Bell & Hogan, 2004, p. 7). U.S. stores, however, failed to focus on convenience needs as they changed. According to Bell & Hogan (2004) people wanted new products and
Major Differences
There are many differences between the situations in Japan and the U.S. that made the Japanese 7-Eleven experience with prepared foods significantly different than that of the U.S. stores. First, “convenience stores in Japan faced little competition from gas station mini-markets, and until the early 1990s they benefited from government regulation that limited the size and operating hours of large- and medium-size stores” (Bell & Hogan, 2004, p. 4). Contrary to Japan, 7-Eleven stores in the U.S. were faced with fierce competition from a variety of convenience stores with very similar business models. Convenience stores in Japan made a commitment to provide expediency in all aspects of daily life. Such stores sold takeaway lunch boxes, rice balls, ready-to-serve dishes, bread and various drinks (Bell & Hogan, 2004). Japanese stores based their business model on customer needs and convenience. “To ensure that customers received fresh quality products, food items were prepared continuously and delivered to the stores three times daily.
The strategic locations of preparation plants combined with the high store density, required minimal travel distance and therefore facilitated the speed and ease of deliveries (Bell & Hogan, 2004, p. 7). U.S. stores, however, failed to focus on convenience needs as they changed. According to Bell & Hogan (2004) people wanted new products and
References: Bell, D. & Hogan, H. (2004). 7-Eleven, inc. Harvard Business School, 1-30. Carroll, J. (2011). Food industry trends 2011 report from a keynote. Retrieved from http://www.jimcarroll.com/2011/06/food-industry-trends-2011-report-from-a- keynote/#.TzWH2oGwVLc Kotler, P. & Keller, K. (2012). Marketing Management (14th ed.). Upper Saddle River, NJ: Pearson. Shuk-Woon, L. (2011). How customers assess rebranding strategy: The impact of perceived brand image similarity and loyalty before rebranding. The Hong Kong Polytechnic University, 7, 1-152.