Eleven, Inc. Case

major(ip) Differences There ar many differences between the situations In Japan and the U. S. That do the Japanese 7-Eleven experience with prompt foods evidentiaryly different than that of the U. S. Stores. First, convenience stores In Japan faced little competition from gas station mini- food markets, and until the archean sass they benefited from government regulation that limited the size and operating hours of large- and medium-size stores (Bell & Hogan, 2004, p. 4). distant to Japan, 7-Eleven stores In the u. s. Were faced with fierce competition from a variety of convenience stores with ere similar business models.Convenience stores in Japan made a loading to provide expediency in all aspects of daily life. Such stores interchange takeaway lunch boxes, rice balls, ready-to-serve dishes, bread and various drinks (Bell & Hogan, 2004). Japanese stores found their business model on customer trains and convenience. To ensure that customers received unsanded-made quali ty products, food items were prepared continuously and delivered to the stores three quantify daily. The strategic locations of preparation plants combined with the high store density, required nominal travel stance and in that respectfore facilitated the speed and ease of deliveries (Bell & Hogan, 2004, p. 7). U.S. Stores, however, failed to focus on convenience needs as they changed. match to Bell & Hogan (2004) people valued new products and services and the follow did not keep pace instead, the company fell into the trap of defining market share in basis of number of stores, and they stopped cr take in value in each new store. Additionally, U. S. Stores neer paid much attention to its Japanese licensee, and therefore never realised that 7-Eleven had reinvented the store with the fresh food concept (Bell & Hogan, 2004, p. 2). Strengths & Weaknesses Keyes shared the vision utilize in Japanese stores, concentrating on fresh food gross revenue.He did this by adopting the f resh food concept to offer total convenience to consumers. In inn to get all franchisees on board, Keyes required stoneware to buy a significant portion of their merchandise from approved vendors, and in turn allowed for more supplement of the system (Bell & Hogan, 2004). Keyes also utilized Austin, Texas as a test market (Bell & Hogan, 2004). This allowed the company to test various lines of food and pricing options. Perhaps the just about Important element of the 7-Eleven overhauls In the United States was the Implementation off set up wide proprietary retail Information system.Mulching this from 7-Eleven Japan, the system was designed to alter each store to Improve Inventory management efforts (Bell & Hogan, 2004). Keyes missed the gravy holder by not being more in touch with the customer. According to Bell & Hogan (2004) 7-Elevens Temperamental weaknesses were Invisible Decease ten company was use ten wrong measures. The company failed to create value in each store and pa y close attention to changing trends and customers needs. Additionally, 7-Elevens failure to incessantly innovate and change, as convenience needs changed affected the companys the success (Bell & Hogan, 2004).Marketing Efforts In order to make the most of its new capabilities and vision, 7-Eleven U. S. Should undertake various merchandise efforts. First, the company should monitor customer- buying patterns to maximize sales by staying stocked on popular items, managing product assortment and merchandising effectively. Understanding that this fabrication is exceedingly competitive, 7-Eleven must create a marketing strategy that is not bad(p) by tidying consumer trends and in-store traffic. This would allow the company to affectively track buying trends.Ultimately, this would keep the placement up to date on convenience needs as they change, allowing marketing efforts to be focused in both areas of strength and weakness. Furthermore, since gasoline sales contribute to increas ed traffic, it is imperative that 7-Eleven stores sell gasoline at as many locations as possible. Implications Should 7-Elevens prepared food initiative prove successful, there result be a significant increase in measured competition in the industry. Being that this sector s already highly competitive, convenience stores need to find ways to differentiate themselves from the competition.Introducing fresh foods will be one way to do so. The success fresh foods would institute to the industry would be game changing. Typically the general image of a U. S. Convenience store encompasses cigarettes behind the counter, nonfood items displayed on the counter, magazines in front (Bell & Hogan, 2004, p. 17). nevertheless changing the perception of convenience would not only attract new markets but also penetrate current markets. Ultimately, competitors in this industry would need to rethink both merchandising and arresting strategies to ensure they were aligned with the likes of 7-Eleven. As high society places a larger emphasis on convenience and freshly prepared food, the outlook for 7-Elevens freshly prepared food offerings is promising. Specifically, recent trends indicate that while there is a push towards health conscious, yet convenient selections, consumers are favoring this option. Furthermore, the key innovation opportunity is to keep innovating with food and taste trends environ convenience and health (Carroll, 2011). Since convenience stores arent typically noted for having such eating options, management must work to ensure they successfully rebind their image.