What began in 1927 as an icehouse in Texas, US has grown into the world’s largest retailer. 7-Eleven became the world’s most popular convenience store by focusing on one basic goal: to make customers’ lives simpler. That means we’re always inventing, and it shows in our goods, technology, and customer service.
In this case study, we’ll learn about the SWOT Analysis of 7-eleven and the company. Let’s get started.
With about 71,000 convenience stores in 17 countries, 7-Eleven is the global leader in convenience retailing. Founded in 1927 it is a Japanese- American convenience store brand that promises to deliver a great customer experience.
As of 2005, it falls under the parent company Seven & I Holdings Co. 7-Eleven is known for its 24 hours 365-day service. The interesting fact is that India has got its first 7-eleven store in 2019.
Further, this blog discusses 7-Eleven’s strengths, weaknesses, opportunities to learn from other competitors, and what threats the company needs to overcome to succeed.
SWOT Analysis of 7-ELEVEN
Before starting with the swot analysis of 7-eleven, let’s take us briefly about what is SWOT? Why is SWOT necessary? And what is its importance?
SWOT analysis is a tool to strategize the planning of your business or company in the future. It comprises internal and external factors which are:
- Strength: which tells about the advantages a company is having over others.
- Weaknesses: it gives a reality check to your brand, like why you are lagging behind your competitors.
- Opportunities: these are the future advantages that your business can have.
- Threats: negative effects which might arise around your business shortly.
SWOT analysis gives a clear picture of the company’s position in the market. It is necessary as it clarifies the marketing strategies to be taken forward in the future.
SWOT can be used in the following ways
- Strategy building
- Matching and converting
- Marketing management.
1. Strengths of 7-ELEVEN
As one of the main agencies in its industry, 7-Eleven has several strengths that allow it to thrive withinside the marketplace place. These strengths now no longer best assist it to defend the marketplace proportion in present markets however additionally assist in penetrating new markets. Based on Fern Fort University enormous research – a number of the strengths of 7-Eleven are as follows –
- Superb Performance in New Markets
7-Eleven has constructed an understanding at getting into new markets and making the achievement of them. The enlargement has helped the agency to construct new sales flow and diversify the monetary cycle chance withinside the markets it operates in.
- Strong Free Cash Flow
7-Eleven has robust unfastened coin flows that offer assets withinside the hand of the corporation to enlarge into new projects.
- Strong distribution community
Over the years 7-Eleven has constructed a dependable distribution community that could attain a majority of its ability marketplace.
- Strong Brand Portfolio
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
Weaknesses are the regions wherein 7-Eleven can enhance upon. Strategy is set making alternatives and weak points are the regions wherein a corporation can enhance the use of SWOT evaluation and construct on its aggressive benefit and strategic positioning.
- Advertising and Marketing
The advertising and marketing of the goods left plenty to be desired. Even though the product is an achievement in phrases of the sale, its positioning and the particular promoting proposition isn’t always definitely described that can cause the assaults on this section from the competition.
- Product calls
Not excellent at product calls for forecasting main to a better price of overlooked possibilities to examine its competition. One of the causes, why the times stock is excessive to its competition, is that 7-Eleven isn’t always excellent at the call for forecasting for that reason to be retained better stock each in-residence and in the channel.
- Research and Development
Investment in Research and Development is beneath the quickest developing gamers inside the enterprise. Even though 7-Eleven is spending above the enterprise common on Research and Development, it has now no longer been capable of competing with the main gamers withinside the enterprise in phrases of innovation. It has encountered a mature corporation searching ahead to convey merchandise primarily based totally on examined capabilities withinside the marketplace.
- Market demand
The organization now no longer can address the demanding situations of the gift via way of means of the brand new entrants withinside the section and has misplaced a small marketplace proportion withinside the area of interest categories. 7-Eleven has to construct an inner remarks mechanism at once from the income group on the floor to counter those demanding situations.
3. Opportunities for 7-ELEVEN
- New clients from online channels
Over the past few years, the business enterprise has invested an enormous amount of cash into the net platform. This funding has opened a new income channel for 7-Eleven. In the following couple of years, the business enterprise can leverage this possibility to understand its patron higher and serve their desires through the usage of large statistics analytics.
- Pricing methods
The new era offers a possibility for 7-Eleven to practice differentiated pricing methods withinside the new marketplace. It will allow the company to hold its dependable clients with excellent carriers and trap new clients through different cost-orientated propositions.
- New environmental policies
The new possibilities will create a degree gambling subject for all of the gamers withinside the industry. It constitutes an excellent possibility for 7-Eleven to force domestic its gain in the new era and advantage marketplace percentage withinside the new product category.
- Opening up of latest markets due to authorities’ settlement
the adoption of the latest era preferred and authorities unfastened alternate settlement has furnished 7-Eleven a possibility to go into a brand new rising marketplace.
- Economic opportunity
Economic uptick and growth in patron spending, after years of recession and sluggish increase in price withinside the industry, is a possibility for 7-Eleven to seize new clients and grow its marketplace percentage.
- New taxation
The new taxation coverage can drastically affect the commercial enterprise and might open new possibilities for mounted gamers consisting of 7-Eleven to grow its profitability.
- Lower inflation price
The low inflation price conveys extra balance withinside the marketplace, allow credit scores at decrease hobby price to the clients of 7-Eleven.
4. Threats to 7-ELEVEN
- No ordinary delivery of progressive merchandise
Over the years the employer has advanced merchandise however the ones are regularly reacting to the improvement with the aid of using different gamers. Secondly, the delivery of the latest merchandise isn’t always ordinary hence leading to excessive and occasional swings withinside the income wide variety over the duration of time.
New technology advanced with the aid of using the competitor or marketplace disruptor will be a critical danger to the enterprise in the medium to long term future.
- Facing Complaints
The employer can face complaints in numerous markets given – one-of-a-kind legal guidelines and non-stop fluctuations concerning product requirements in the one’s markets.
- Intense opposition
Stable profitability has multiplied the wide variety of gamers withinside the enterprise over the final years which has placed a downward strain on now no longer handiest profitability however additionally on typical income.
According to the establishment method of 7 eleven, it is a more prominent chance for the organization to expand as neighbourhood business visionaries’ ventures make an immense commitment to its development. The organization stays up with the latest of the structure of the establishment to ensure a decent quality help is being furnished with neatness and an incentive for cash is being offered to the significant clients.
Having outlets in numerous nations, Seven eleven has basically broadened its pay in different business sectors. Some way or another, if there is a disadvantage in one explicit country, it impacts their general monetary report.
7-Eleven stores are worked on a day in and day out premise, that is the reason they have higher working expenses. Because of these greater expenses, 7/11 has somewhat more exorbitant costs to keep their overall revenue.
Hope you enjoyed this case study on the SWOT Analysis of 7-Eleven, if you like to read more about swot analysis or marketing strategies, click here