Question

International Marketing Please Help!

1. How has the convenience store concept evolved in the United States? 2. How do 7-Eleven stores in Taiwan compare with their counterparts in the United States? 1) Positioning 2) Product/Service 3) Store Design 4) Store Location 3. Has localization of 7-Eleven in Taiwan strengthened - or weakened the concept of convenience stores? 4. Does the service differentiation offered by 7-Eleven in Taiwan deliver competitive advantages to the store chain? If so, how? 5. Can the operational format of 7-Eleven in Taiwan be expanded to other countries? Why|or why not?

Answer 1

1)

The concept of a convenience store was brought to the U.S by 7-Eleven. 7-Eleven in the U.S started as a convenience store which operated between the hours of 7am – 11pm which was convenient for customers who worked in shifts. Later on, 7-Eleven changed the hours of their stores to a 24-hour service so that their customers can walk in the store at any time and get what they want. The 24/7 service of 7-Eleven was a huge success because over 10 million Americans are awake at 3am and about 7 million Americans are at work at that time. 7-Eleven adapted to the lifestyle and routines of Americans and this played a huge role in the success of the company in America.

2)

The main difference is usually in the size of the store (floor size). The zoning of properties in the U.S. is horizontal while it is vertical in Taiwan. 7-Eleven stores in the U.S. were big and mostly in the suburban areas but in Taiwan, the store sizes were usually small and were in the basement of high rise buildings. The distance between 7-Eleven stores in Taiwan and in the U.S are different. Some extra services such as I-Bon, pre-ordering delivery and pick up, coffee, taxi services were introduced in Taiwan in addition to the core services. Because of this, I’d say that 7-Eleven in Taiwan and the U.S are different.

3)

It has strengthened the concept of convenience stores. Localization helped strengthen the concept of convenience stores in Taiwan because it helped retail stores become “mobile”. This helped the company to reduce the amount of time spent monitoring the operation and also choosing stores and locations.

4)

Yes, the services offered by 7-Eleven stores in Taiwan deliver competitive advantage to the store chain because it is seen as a one stop shop for all daily necessities along with other supplementary services. Taiwanese consumers have an obsession with immediacy hence convenience stores matched this need for instant gratification.

5)

Yes, the operational format of 7-Eleven has the potential to expand to other countries because it has strong distribution networks, it is financially strong, and it is diverse to catering to the needs of the consumers.

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