7-ELEVEN INC.
BASIC FACTS
7-Eleven, Inc., is the worlds largest
operator, franchisor and licensor of
convenience stores.
Founder : Joe C. Thompson
Current CEO: Joseph DePinto
more than 43,500 stores
more than 45,000 employees
HISTORY
7-Eleven, Inc. is an American international chain of
convenience stores, headquartered in Dallas, Texas.
The chain was founded in 1927 as an ice house storefront in
Dallas. It started selling milk, eggs and bread from an ice
house.
It was named Tote'm Stores between 1928 and 1946.
After 70% of the company was acquired by Japanese affiliate
Ito-Yokado in 1991, it was reorganized as a wholly owned
subsidiary of Seven-Eleven Japan Corporate.
7-Eleven is part of an international chain of convenience
stores, operating under Seven-Eleven Japan Co.
MISSION AND VISION
Mission- Our vision is to be the best retailer of
convenience for emerging markets.
Vision - To make daily life easier by providing modern
convenience.
Core Values:
Teamwork- We foster an environment of synergy to
attain the goals of the organization through active
participation and mutual respect.
Integrity- We are honest and trustworthy to our fellow
employees, customers and business partners.
Reliability- We deliver what we promise.
Customer -FocusWe put our customers first.
Data-driven- We make decisions based on data.
SUSTAINABLE COMPETITIVE
ADVANTAGE
The competitive advantage that 7-Eleven has using
these five forces is it has raised the barrier of entry
for other competitors to enter the convenience
store market as new competitors will require a
huge capital investment in order to implement the
RIS in their business in order to be competitive.
VALUABLE CAPABILITIES
The financial resources of 7-Eleven are highly valuable as
these help in investing into external opportunities that arise.
These also help 7-Eleven in combating external threats.
Its patents are a valuable resource as these allow the firm to
sell its products without competitive interference. This
results in greater revenue for 7-Eleven. These patents also
provide 7-Eleven with licensing revenue when it licenses
these patents out to other manufacturers.
Its cost structure is not a valuable resource. This is because
the methods of production lead to greater costs than that of
competition, which affects the overall profits of the firm.
Therefore, its cost structure is a competitive disadvantage
that needs to be worked on.
RARE CAPABILITIES
The financial resources of 7-Eleven are found to be rare
according to the VRIO Analysis of 7-Eleven. Strong
financial resources are only possessed by a few
companies in the industry.
The employees of 7-Eleven are a rare resource as these
employees are highly trained and skilled, which is not the
case with employees in other firms. The better
compensation and work environment ensure that these
employees do not leave for other firms.
The patents of 7-Eleven are a rare resource as these
patents are not easily available and are not possessed by
competitors. This allows 7-Eleven to use them without
interference from the competition.
NON-SUBSTITUTABLE CAPABILITIES
The financial resources of 7-Eleven are organized to
capture value as these resources are used
strategically to invest in the right places; making use
of opportunities and combatting threats. Therefore,
these resources prove to be a source of sustained
competitive advantage for 7-Eleven.
The distribution network of 7-Eleven is organized as
7-Eleven uses this network to reach out to its
customers by ensuring that products are available on
all of its outlets. Therefore, these resources prove to
be a source of sustained competitive advantage for
7-Eleven.
COSTLY TO IMITABLE CAPABILITIES
The local food products are not that costly to
imitate as these can be acquired by
competitors as well if they invest a significant
amount in research and development.
The patents of 7-Eleven are very difficult to
imitate because it is not legally allowed to
imitate a patented product. Similar resources
to be developed and getting a patent for
them is also a costly process.
SWOT ANALYSIS
STRENGTHS: WEAKNESSES:
• Geographic presence • High margins
• Strong Brands • Limited assorted offering
• Franchise System • Not perceived as a place to buy
• Convenience a complete meal
• Not a first choice destination
shoppers
OPPORTUNITIES: THREATS:
• Fresh food offering • Intense competition
• Increase share of the meals (bf, • Low consumer confidence
lunch, and dinner) • Regulatory issues
• Private level development • C-store competition and other
• Growing demand for organic small-box retailers
products
