Seven Eleven Market AnalysisSeven Eleven Market Analysis7-Eleven, Inc.3. Appendix3.1 Company description and backgroundInstead of its current convenient store business, the South Land Ice Company, founded in Dallas, Texas back in 1927, was start by selling blocks of ice to refrigerate food. Later, one of its directors wanted to expand its services by selling milk, eggs and bread through his retail ice docks, then introduced a new name for the retail stores “Totem Stores”. At first the company operated on Sunday evenings when most of grocery stores were closed. In 1946, the company changed its name to “7-eleven” to reflect the change in operating hours, from 7 a.m. until 11 p.m. Currently, however, most 7-eleven stores operate twenty-four hours a day and seven days a week.
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[P,D,C,H,J,K]1. In January 1937, the South Land Ice Company and Seven Eleven, Inc. created a subsidiary company, Seven Eleven Parkland Holdings, which today would be called the Seven Eleven Ice Co. In 1949, Seven Eleven Corporation purchased the building of the South Land Ice Company (Swansheim, Utah Territory) along with a new section of North Land and the South Land Ice Company. The swansheim building, which originally belonged to Seven Eleven Ice, also became an ice dock for local market products and beverages.
[1] This is one of the most important points about the South Land Ice & Company as it, once had a strong base in Southern Utah, continued to grow in the west to the south.
[2] However, the South Land Ice Company was not known to the public until it moved to Utah, when it became a part of the national brand of the same name in 1976.
[3] A recent statement on the North Land Ice & Company website, says:
“As one of our largest family-owned companies, Seven Eleven Ice has been a force in the Utah marketplace for the past 15 years. Together, the two companies offer innovative strategies to increase consumer confidence and increase supply for our customers. Our goal has always been to find innovative ways to make our customers comfortable. We provide innovative and reliable customer service through our ice dock service, frozen food & beverage, ice cream, ice boxes & ice toys. We value our customers and provide quality inventory with the highest customer satisfaction guarantee.
[4] See also: The North Land Ice & Company’s history; the North Land Ice Company as a brand; seven-four, seven-eleven, 7-eleven, and 7-Eleven
[5] One key difference between the three is that Seven Eleven operates a larger complex, one that can contain up to twenty-eight ice businesses. It has operations in the Central Valley ⁘.
[6] For example, in February of 1997, The North Land Ice Company, and Three Sisters, Inc., purchased an 11,000-foot ice docks that will help stores be more or less “accessible to everyone.” More importantly, they have taken ownership of it, as The North Land Ice Company said:
“Since 1987, North Land Ice has worked and continues to work to develop an affordable and sustainable home or rental store. To stay on track … we’re building our own rental store; building a new place of business and using the site with a combination of new and traditional business models. Seven Eleven Ice, along with the Three Sisters and Three Ice, are all focused on building sustainable and inclusive residential, professional, family-owned, and nonprofit businesses, based around community-based solutions to the challenges of today in Utah. Seven Eleven’s mission as a North Land Ice Company is to connect North and South residents in their communities with the goods and services
Today most of the Dallas based company stocks are owned by Japanese company, IYG Holding Company. The company operates, franchises, and licenses 6,850 stores in the U.S. and Canada. Internationally, the company licenses and affiliates operate 28,900 stores in 13 countries including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Singapore, Australia, Philippines, Norway, Sweden, and Denmark.
3.1.1 Mission statement and objectivesThe company considers itself as a good neighbor that serves the changing needs of the communities in which the stores operate. To be a welcome and respected neighbor, the company enhances the quality of communities by providing broad selections of fresh and quality products twenty-four hours a day, ensuring that the company will meet customer needs whenever they want. In addition to meeting the convenience needs of the communities, the company also enhances the overall quality of life in neighborhoods by focusing on four areas including safety, education, health & wellness, and community revitalization. To achieve this, the company provides variety of programs such as a corporate giving program: donate cash or products to the local police, school, and community events, coupon program: reward the positive behavior of children by providing free slurpee coupon. Moreover, on the national level, the company funds many charities and donates a portion of its profits to the USO, the American Red Cross, breast cancer awareness organizations, and St. Jude Childrens Research Hospital.
3.1.2 Core competenciesThe companys core competencies reflect its mission statement and objective and to serve the communitys changing needs.Its core competencies lie on the information system. The company uses the retail information system (RIS), which provides store manager with historical sales data. The data provides valuable information including sales trends that help to address which items are slow-sales items. With that information, store operators can get rid those items and replace them with new ones. Moreover, store operators can use this information to maximize the sales and prevent the run-out-of-stock situation of that particular item. Ultimately, stores operators can observe when the busiest hours for a particular item are and arrange an appropriate shipping time to ensure that customers will get fresh and quality items every time they come to the stores.
This technology offers two benefits to the company. First, it offers flexibility to replace the slow-sales items with the new items. This represents the companys effort to serve the changing needs of customers. Second, the technology offers the ability to serve fresh and quality items and the right place and the right time. The item-by-item management reduces the opportunity costs of slow-sales items and the stock inventories.
3.2 Situation Analysis (SWOT)StrengthsAn international convenience store and the largest chain store with more than 35,000 stores around the world located in over eighteen countries. 7-Eleven, Inc. and its franchisees operated 6,840 stores in the United States and Canada, and also with the global 7-Eleven store count reaching 28,900 stores worldwide.
Localized assortment to familiarize the preference of communities.Offers fresh, high quality food24 hour convenience outlets with strong brand name.Computerized information system (RIS)WeaknessesLimited variety of assortment.Limited outlet space thus causing