Weakness of Seven Eleven
Weakness of Seven Eleven
WEAKNESS
Limited outlet space thus causing inventory inefficiency.
Permit or license under the authority of the trade ministers of the franchise registration certificate (STPW) as the franchise has not been released yet. This will cause a few people want to buy the franchise. Director General of Domestic Trade Minister, Subagyo said the current permit opening of 7-Eleven outlets still under the field of Culture and Tourism (Budpar) as the restaurant business. While the license under which the authority Trade Minster franchise registration certificate (STPW) as the franchise has not been released yet. “All I know is in Bulungan (South Jakarta), it is still questionable, and his form what? (Restaurant or convenience store), “said Subagyo in his office, Jakarta. He also emphasized such things as the use of modern stores operating license (IUTM) every 7-Eleven outlets must be observed
There are some things lacking in the prospectus of seven eleven.
Inadequate security systems. Not as advanced security systems in other countries. Example is like the security guards are often stand around and just talking, making unknown criminality that happening in the store. The criminality could be like the dishonesty of the customers, example: they like to refill their slurpee after they pay at the cashier. Comparing with 711 in the Japan, they use safety system which uses sophisticated and high technology. In case of robbery, store employees push the button and the door was locked directly and the glass used is a special glass that could not break if thrown with any hard object. only the police who can open the glass.
Inaccessible. Seven eleven stores are still too few and there are few outlets not having a strategic location. This will lower the awareness of the store. And for the outlets that are not at the most strategic location, the sales might decrease.
Area for dining is insufficient. Numbers of table and chair are limited which are not comparable to the number of visitors.
High margins/prices. Not everyone can buy things there, especially in Indonesia. Because the majority of Indonesia people SES is C or below. Product prices tend to be more expensive than the competitors. Prices of local products more expensive around 1000-2000 rupiah
Limited assortment offering. With few choices of products and brands, the customer might get bored and doesnt want to dine at 711 anymore.
Not perceived as a place to buy a complete meal. Indonesias culture and habit while eating is that they should have rice, vegetables, fruits, fish, and milk. 711 primary foods are hot dog and sandwich, which are not Indonesias primary/complete meal.
Not a first choice destination for shoppers. The one that buy the most when shopping are housewives, and they usually buy their needs a lot of choices and a lot, so they usually buy their needs in a supermarket/hypermarket, and this make 711 (a convenience store) not the first choice destination.
Lack of communication with the customers because of least developed internet or web based facilities. This will decrease the awareness of 711s product, and the impact is that the customers wont know what product is new in the store, therefore they might not want to visit the store, because of boredom of the old products.
Diverse demographic locations lacking the main power holding them together makes them follow the rigid governmental policies, which disturbs the efficiency effectively.
The employee turnover often seen by the company is a sign of its ill management. The employee is not loyal to the company, therefore they turnover and resign from the company, and a lot of new recruitments needed to be conduct.
There are increases of prices for beverages menu that are too high.
Still many areas in Jakarta and other big cities ore not reached. This will reduce