7-ELEVEN CUSTOMER DRIVEN MARKET STRATEGIES
As per franchise mode of 7 eleven, it is a greater opportunity for the company to expand as local entrepreneurs’ investment make a huge contribution to its growth. The company keeps up to date of the framework of franchise to make sure a good quality service is being provided with cleanliness and value for money is being offers to the valuable customers. MARKET ANALYSIS
Managing the market function begins with a complete analysis of company situation which can be achieved by SWOT analysis:
Irfan Fazal 11500183
SWOT analysis
A SWOT analysis is a method used to demonstrate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.
STRENGTHS WEAKNESS …show more content…
This gives the strength to the organization. Initially, it started to increase the number of franchises around the world without having specific capital requirements, as the owner is particularly responsible for the setup costs of the site.
Diversity of income
Having outlets in multiple countries, Seven eleven has essentially diversified its income in various markets. Somehow, this can also be a weak point; it also gives a power of stability of income, if there is a drawback in one specific country, it puts effect their overall financial report.
WEAKNESSES
High rental costs
Due to prime locations of the stores, rental costs are higher. Therefore, they need to adopt a price premium approach. Some customers are willing to pay a bit more for their own convenience and premium purchase but other consumers are price sensitive.
High staff costs
Seven Eleven stores are operated on a 24/7 basis, that’s why they have higher operating cost. As a result of these higher costs, 7/11 has a little bit higher prices to keep their profit margin.
Franchisees
It is based on franchisee system, that’s why it erases the direct control of management of each store on daily basis. Moreover, for the training of franchisee, a good team is required. This also increases the overall cost on operational
As per franchise mode of 7 eleven, it is a greater opportunity for the company to expand as local entrepreneurs’ investment make a huge contribution to its growth. The company keeps up to date of the framework of franchise to make sure a good quality service is being provided with cleanliness and value for money is being offers to the valuable customers. MARKET ANALYSIS
Managing the market function begins with a complete analysis of company situation which can be achieved by SWOT analysis:
Irfan Fazal 11500183
SWOT analysis
A SWOT analysis is a method used to demonstrate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.
STRENGTHS WEAKNESS …show more content…
This gives the strength to the organization. Initially, it started to increase the number of franchises around the world without having specific capital requirements, as the owner is particularly responsible for the setup costs of the site.
Diversity of income
Having outlets in multiple countries, Seven eleven has essentially diversified its income in various markets. Somehow, this can also be a weak point; it also gives a power of stability of income, if there is a drawback in one specific country, it puts effect their overall financial report.
WEAKNESSES
High rental costs
Due to prime locations of the stores, rental costs are higher. Therefore, they need to adopt a price premium approach. Some customers are willing to pay a bit more for their own convenience and premium purchase but other consumers are price sensitive.
High staff costs
Seven Eleven stores are operated on a 24/7 basis, that’s why they have higher operating cost. As a result of these higher costs, 7/11 has a little bit higher prices to keep their profit margin.
Franchisees
It is based on franchisee system, that’s why it erases the direct control of management of each store on daily basis. Moreover, for the training of franchisee, a good team is required. This also increases the overall cost on operational