7 Eleven Japan Case Study

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Question 5: Is the offering of more services in Japan, including banking, provision of in-store terminals for use by customers and so on likely to cause problems for part-time workers in the franchises?

Answer: No! This is because in order to ensure effective management of the franchises working round the clock services, human elements and manpower are needed to help guarantee the smooth running of the stores. Additional part-time workers are needed to help guide first time users in 7-Eleven stores on how to use the facilities available for consumption and utilization. Part time workers also help in preserving law and order, acts as check against burglary and thefts.

Question 6: Does China offer good potential for further expansion for 7-Eleven?

Answer: China will offer a very good potential for further expansion for 7-Eleven.

- Looking into the growing GDP per capital in the China (over 2 billion population).

- Densely population concentration in the larger cities such as Shanghai, Beijing, Guangzhou, Shenzhen, Dongguan, Taipei, Chengdu and Hong Kong is an attractive potential for further expansion of growth.

- Availability of social amenities such as high speed transportations and high speed internet presence in China are very encouraging for further investments and expansion.

- China being a close neighbour of fellow Asian country Japan where 7-Eleven have it headquarters makes logical transfer much quicker.

Question 7: Was 7-Eleven’s entry strategy appropriate for China? Explain why or why not.

Answer: The conservation approach strategy (Albaum & Duerr 2016, p. 239) 7-Eleven used in China was appropriate due to the fact that the geographic segmentation model used in the Scandinavian case whereby successful market entrance between neighbouring countries with similar cultural interrelation (Sweden-Denmark-Norway) couldn’t be applied. 7-Eleven took precautions due to the governmental regulations and policies differences in both regional countries (Japan-Taiwan & China). Therefore right connections, plus detailed knowledge of the legal, political and social environmental factors had to be meant during the implementation strategy phase of 7-Eleven moving into the Chinese market.

Reference List

Albaum, G., Duerr, E. and Josiassen, A. (2016). International marketing and export management, eight edition, Pearson education limited, United Kingdom.

Pehrsson, A. (2000). Strategy competence: a key profitability driver. Strategic Change, Vol. 9, pp. 89-102.

Pehrsson, A. (2008). The PSE model for market entry: Ericsson enters the US market. Business Strategy Series, Vol. 9, No. 4, pp. 168-175.

Prahalad, C. and Hamel, G. (1990). The core competence of the corporation. Harvard Business Review, Vol. 68, pp. 79-91.