Analysis Convenience Store
Analysis Convenience Store
1.1What is the research issue?
Nowadays, many convenient shops and super market stores around the world are operating 24 hours a day 7 days a weeks. Presently, in Thailand such small to medium size convenient store/grocery store are now dominating by Tesco and 7-Eleven. Both companies make up more than 70% of market share in convenient shop and the share is still increasing every year. While both overseas multinational corporation companies growing, small local family stores find themselves unable to compete with them and slowly began to decrease it number.
In 1992s, 7-Eleven had opened it first branch in Bangkok, Thailand (7-Eleven Thailand). That is when Thai people were first introduce the concept of 24/7 shop. At a time 24/7 shop is a new concept that Thai people were not accustom to. That is why 7-Eleven had spent a large amount of money to make Thai people aware and get use to the concept of 24/7 shop. Now 24/7 shops such as 7-Eleven and Tesco Express become shop that Thai people know they can go shopping there whenever they want, because it is never close.
Therefore, it is important to look at their strategies to see why 7-Eleven and Tesco are so successful when they are introducing new concept of lifestyle that was not part of Thai culture. Also, how 24/7 convenient stores had affect on other matters than culture.
1.2Why is it an issue?
Before 1992s, many Thai families had earned living by running small family stores. However, the way of earn living by running a family store had become harder for them since 7-Eleven started to operate in Thailand. As mention above that, small local family stores found themselves unable to compete with overseas multinational companies. Family stores that cannot make enough profit