Can 7eleven Succed in Germany
Key Points: Of the case
Intro:
• Robin Carter was searching a good German name for a Convenience store.
• In Germany shopping done before 6 pm, but now open until 8 pm.
• German government allowing stores to open for longer time.
• Supervisor of 7 -11 instructed Robin to analyzing and make a report on languages and cultural issues before entering in German market
• Can German market accept the American style convenience store?
7-Eleven. Inc
• Concept of convenience store was born in 1927.
• Employees of South land, Texas began to start to sell milk, bread and eggs on Sundays and evenings after grocery stores hours.
• People accepted this idea of this new service
• 7- Eleven had 24000 stores worldwide and app six million customers per day.
• Company succeed in overseas especially in Asian countries such as Japan , Taiwan ,south Korea and Thailand
• More than 9000 stores in Japan and Hawaii.
• Small number of licensed stores in Europeans countries.
• Increase in demand of convenience stores in Germany, 7 – Eleven had not entered in German market before 2003, As Competition was intense, margins slim , and mainly hours of operation limited by law to day time .
• With continuous change in environment , 7-Eleven want to reassess its opportunity for entering the German market
The Food Retailing Environment in Germany
• Population of 82 million and largest economy in Europe , Germany was the leading food and beverages market.
• There were stringent food law and regulation with regard to packaging and labeling, there were excellent opportunity for entry by companies from EU countries.
• High labor cost due to high standard of living.
• More pressure on full time employees rather part time employees.
• In Germany employees were paid 50% of contribution for health insurance, unemployment insurance and retirement benefit.
• Length of work 37-39 hours a week and vacation of 4-6 weeks
• German laws required