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Report on
7-eleven in Taiwan: Adaptation of convenience stores
to new market environments
Submitted by:
Karan pratap-1226114116
Naseer khan-1226114117
Lalit Akhil pillala-1226114119
Sai surya raghava-1226114120
Malavika issar-1226114121

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Summary:-
The case portrays the expansion of 7-Eleven to Taiwan and the adaptation of the
store format by its local franchisee to a new market environment. The core issue
in this case is the balance between standardization and localization in business-
format franchising across national borders. Keeping only the store logo and the
convenience concept that was well-established in the United States, the local
franchisee of 7-Eleven in Taiwan re-formatted almost all aspects of the store
chain, including its positioning, location, layout, product offerings, etc. In
addition, 7-Eleven in Taiwan introduced a wide variety of new services to
handle daily chores for its customers, ranging from e-commerce (train or movie
tickets), e-payment, mobile communications, and pickup/delivery to taxi
services. The local franchisee, President Chain Store Corp. (PCSC), seemed to
have struck the right balance between standardization and localization that
allowed it to use service differentiation to gain competitive advantages over its
rivals. In about three decades, it grew from zero to nearly 5,000 stores in
Taiwan with over 50 per cent of the market while expanding its reach to China
and Thailand.
7-Eleven Taiwan Case Study Analysis
7-Eleven Inc is the operator, franchisor and licensor of convenience stores.
As an American company, it expanded the global market quickly and
successfully, especially in Taiwan. Marketing is key to 7-Eleven’s success. In
learning its global corporation’s marketing mix, I will mainly focus on
following four parts. First, the company’s marketing strategy in the united state
will be discussed. And then 7-Eleven’s market entry strategy in Taiwan will be
focused on. Thirdly, marketing mix about 7-Eleven Taiwan will be analyzed
deeply and critically. Last, some minor suggestion will be given to make 7-
Eleven developed better in the further.
The marketing strategy in the United States is innovative and unique. At
its initial stage, the decisive factors for this company’s success are that 7-Eleven
launched an innovative store and service in the United States and then entered
into this “Blue Ocean”. As we can see, in 1940s, the concept of convenience

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store was challenging because shopping in convenience store is new and
unfamiliar consumer behaviour for American people. As a store, it sells
convenient service more than its product. So this is an innovative marketing
segmentation. Moreover, the convenience store can meet the unsatisfied
demand in American market. At the second stage, when the store expanded over
its original market into other districts in America, the company took the
standardization of business format, including the logo, location, store’s layout
and merchandising. Standardization can improve brand identity. Furthermore,
as a retail brand, the company use the franchising route can lessen capital
outflow and shorten managerial time spent in monitoring operation. It’s a quick
way for a fledgling company to broaden its business. All in all, Standardization
and flexible franchising way made this company immediately penetrate in the
United States.
7-Eleven Taiwan is an excellent company experiencing nearly no problem.
According to Hsieh said, it place no limit to the extent to which 7-Eleven
Taiwan could expand and diversify its offering. This year it makes a further step
on product diversity. 7-eleven Taiwan begin to sale 7-Eleven-branded TVs,
which can place orders on the on the 7-Eleven website or at more than 4800
outlets in Taiwan. It sales is significant and the company plans to launch its
tablets and smart phones in the further. What makes me concerned is that how a
700-square-meters store can provide so many products and services. The
diverse product may blur the brand position. Like supermarkets, 7-Eleven
provides foods and grocery; Like BEST-BUY, 7-Eleven provides TVs and
smart phones. Like Amazon, it provides the online sales………so many
functional districts in a limited space. And it even provides tickets and delivery
service. Maybe one day it can provide all the activities the citizens need and
then it became a big mall or city hall. That’s unpractical. So I think 7-eleven
need to expand blindly. That is to say, in pursuit of diversification, the company

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should pay more attention on the service quality and its capacity. And on the
other aspects, when 7-Eleven Taiwan enter into mainland China market, it
cannot take the same steps as 7-eleven operate in Taiwan because the
demographic and geopolitical environment have a big different. There are some
risks in the further development as the needs of people are changing.
Problems:-
1. How has the convenience-store conceptevolvedinthe UnitedStates?
The convenience store concept was brought in by 7-Eleven when the store
started providing daily consumption groceries to its consumers under one roofand that
too between 7am to 11pm which was convenientformanyconsumers who used to workin
shifts. After looking at the needs of people, 7-Eleven launched a 24 hour service of
its stores to its consumers. The consumer’s found this very convenientbecausethey
did not have to worry for the timings as they cangetinthestorewhichis open24hours and
on alldays. This 24/7 service of 7-Eleven became a hit because morethan10millionpeople
in the United States were awake till 3am and about 7 million people who were involved in
some work. The store adapted to the changing work style and routines of the Americans.
Late night or early mornings, the schedules were getting common and the factories stared
running three fullshifts. This work style needed a convenient store where peoplecango and
shop most of the items at one place and that too at a convenient time. Hence, 7-Eleven
inculcated the habit in Americans to buygroceries Itheconvenientstores whichmetmostof
therequirements oftheconsumer.
2. Is the conceptuniversalacross allcountries, including Taiwan?
Yes, the concept of convenience stores was more or less on the similar lines outside the
United States. 7-Eleven was making progress wherever they opened a store despite of the
presence and proliferation of the domestic players in every country. The
consistency in the colour separation of its signage, the presentation of its logo and the
arrangement of the store interiors were similar except for the location which was left on the

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franchisee. But in Taiwan, the concept was not inexact replica since Taiwan had a vertical
zoning of property. Adding to this there was a unique traitofTaiwaneseconsumerwho had
an obsession with immediacy and wanted less waiting time. The localization of the stores in
orderto keep localfood products was also madeinorder to increasethefootfalls.
3. How do 7-Eleven stores inTaiwancompare withtheircounterparts inthe United
States?
The main difference was made in the floor size of the store. The stores in US were big and
were generally in the suburban areas so that people have a driveway and ample parking
facility. It was due to the horizontal zoning of the property in the US but in Taiwan, the
zoning of property was vertical due to which thestore size were very small and were
generally in the basement or a floorof the high rises. Hence, the distances between the 7-
Eleven stores were also less as compared to that in the US. Apart from the core services,
certain supplementary services were also introduced in 7-Eleven stores in Taiwan like I-
Bon, pre-ordering, delivery and pick up, telecom related products, taxi services, seating
areas and laundry services. Hence, the 7-Eleven stores in Taiwan were different
from its US counterparts.
4. Haslocalizationof7-EleveninTaiwanstrengthened-orweakened-the conceptof
convenience stores?
Localization helped 7-Eleven strengthening the concept of convenience stores in Taiwan.
This was mainly because it helped the convenience stores to become like retail nomads.
This helped the company in reducing its capital outflow and managerial time spent in
monitoring the operation. It offered greater flexibility in the choice of stores and
location and facilitate rapid growth of the store by entering the burgeoning
market place. The new franchises were put up in the high density locations.
Investment was made inadvertisingin the local media. Though the setup and the modelof
the7-Eleven storesinTaiwan were thoseoftheUS, butthe PSCShad takenstepstoprovide
localization by adding local flavours which were more preferred by the Taiwanese

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consumers. They started selling hot microwave packaged food which a consumer could
grab at any time of the day. Hence, localization strengthened the concept of convenience
storeinTaiwan.
5. Does the service differentiationofferedby7-EleveninTaiwandelivercompetitive
advantages to the Store chain? Ifso, how?
Yes, the services offered by 7-Eleven stores in Taiwan did add on to the competitive
advantage ofthe store chain because it was perceived as one stop shop where people can
purchase their daily necessities and can also use many of its stated supplementary services.
The basic notion behind adding these services were to ensure that the footfall in the store
increases which the store can capitalize onand useitto increaseits sales. Hence, aconsumer
who wants to renew his license can use the I-Bonserviceof7-Elevenand canalso purchase
some necessary good for himself. This increases the sales of the 7-Elevenstores and works
as a competitive advantage to the store since this was first of its kind experience for the
Taiwanese consumerwho had auniquetrait of obsessionwithimmediacy.
6. Cantheoperationalformatof7-EleveninTaiwanbe expandedto othercountries?
Whyorwhy not?
Yes, the operationalformat of 7-Eleven can beexpanded to othercountries. Withtheadvent
of IT and cloud servers, a consumer gets access to a range of whole new experience. This
model can be a hit since; consumers now want the service to be quick and a one stop
solution. The concept of localization will also add to the increment in the sales since a
consumerofaparticular region will have moreliking towards his traditional products.
Case solution:-
The case illustrates the expansion of 7-Eleven in Taiwan and adaptation format
stores its local franchisee under the new market conditions. The main issue here
is the balance between standardization and localization in business format
franchising across national borders. Leaving only the logo and the convenience
store concept is well known in the United States, the local 7-Eleven franchise in

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Taiwan reformatted almost all aspects of a chain of stores, including its
positioning, location, location, product offerings, etc. In addition, 7-Eleven in
Taiwan introduced a wide range of new services for handling daily
responsibilities to their customers, ranging from e-commerce (train or movie
tickets), electronic payment, mobile, pickup / delivery of taxi services. Local
Franchisees, President Chain Store Corp. (PCSC), seemed to hit the right
balance between standardization and localization, allowing him to use the
service differentiation to gain a competitive advantage over their rivals. For
about three decades, it has grown from zero to nearly 5,000 stores in Taiwan
with more than 50 percent of the market, while expanding its influence in China
and Thailand.
Conclusion:-
7-eleven Taiwan adapts to the changing market quickly and it can also
adjust its marketing strategy to changing demands. As a global enterprise, it
gives us a deep insight into global marketing. Globalization has opened trade
opportunities for different corporations. 7-Eleven is one of these corporations
that opened 4,600 storehouses, bringing the trade brand to 46,000 locations and
more across the globe. Convenience in terms of location is one of the most
important factors that should be considered. While supplementary retailers
make great effort to export their storehouses away from their home countries, 7-
Eleven will have to expand into numerous countries. In future, 7-Eleven needs
to aspire to grow and open office locations in other countries, for instance South
Korea, USA, Thailand, and Canada. This will enable the corporation attract
markets in New York City, and Charlotte, N.C. with the hope of imitating
expansion strategies, which served the company well within Taipei and Tokyo.