7-ELEVEN BUSINESS DESCRIPTION

Well known as the number one convenience store, 7-ELEVEN is a market place leader

constantly looking for its client’s satisfaction while thinking and seeking for many innovative

ways to remain convenient and alive in a busy changing world. In addition to its quick

adaptation and ultimate response to its customers, 7-ELEVEN is a growing global brand

seeking for more and more expansion. According to Seven eleven’s official site (A Growing

Global Bran): “the business is counting over 63000 stores spread in 17 countries around the

world.” This huge success could be strictly due to their central focus on innovation and the

quick services they procure to their customers holding a 24/7 demand that is fully satisfied. A

reason for 7-ELEVEN’s blooming around the world, probably has to do with “Iconic

American products” that it offers to the world connecting to the newest generation of

shoppers using the latest technologies to do so. Seven Eleven convenience store introduces to

the world it’s main products such as “Slurpee”, “BIG Gulp” and “Big Bite” forwarding the

American connotation and look of what they serve.

 Description

 Industry: Retail (Convenience stores)

 Founded: 1927, as “Tote’m stores”

 Founders: Joe C. Thompson Jr.

 7-ELEVEN: World’s leading convenience store

 Owned by the by the Japanese retail conglomerate Seven & I Holdings

 Website: www.7-eleven.com

http://franchise.7-eleven.com/franchise/the-brand#why_brand_global
  Global overview:

 According to vault.com “7-Eleven operates, licenses and franchises of 56,600

stores in over 18 countries and operates over 10,000 company-owned or franchised

in Canada and the United States”

 According to the same source “the business franchises over 51,000 stores in

over15 countries, spread in Nordic and Asian regions. (Norway, Sweden,

Denmark, Malaysia, Singapore, Philippines etc.)”

http://www.vault.com/company-profiles/retail/7-eleven,-inc/company-overview

 Why 7-ELEVEN?

o Efficiency

The reason behind our choice is pretty simple and straightforward. The point in our project is

to introduce 7-ELEVEN into the Moroccan Market and satisfy the Moroccan society with

filling up their wants and needs in the quickest and most effective way possible. As we see it

the business we are willing to implant is far from being oversaturated in the Moroccan market

what leaves a great margin for our process. Another reason of our selection could be due to

the type of Business 7-ELEVEN holds, a convenience store providing everyone and anyone

24/7 with the most favorable and the most essential products. This business could be seen as

the best fit to the Moroccan Market, noting that it’s economy can’t stop rising, the Moroccan

population is getting busier and busier throughout the years. 7-ELEVEN however would

represent the best fit in this kind of situation serving its client immediately at anytime and any

location since the store provides the latest technologies to serve its people.
 o Strong Brand recognition

As it was already noted, 7-ELEVEN is a market leader that is growing global worldwide

making the business very successful and well known by many. This might have to do with

the importance giving to the brand name and the famous quote that has created a strong

customer loyalty to the business. According to Seven Eleven’s official website, (A success

story, fueled by customer needs):

“Give the customers what they want, when and where they want it.”

Joe C. Thompson Jr. | 7-Eleven Founder

Not just a saying, but put in action 7-ElEVEN has proved throughout the years its presence

and loyalty to its customers making it number one convenience store providing the best

services.

o Needs and wants of the Moroccan society

In Morocco the concept today is pretty simple, convenience would sell the most basic

products with not extra services offered making the customer’s interaction with the store quite

slow and boring. This is why the idea of introducing a more effective and efficient concept to

these kind of business could probably be a great success. 7-ElEVEN from all its innovations,

quick services and wide variety of products, the convenience store could the exact thing that

the Moroccan consumers are missing, the efficiency and effectiveness 7-ELEVEN provides.

More than a simple convenience stores the business at hand here provides other services to

maintain and assure their customer satisfaction by constantly initiating the newest ideas and
technologies. Besides the basic products any convenience store offers, 7-eleven initiates the

best delivery services, reward programs and super efficient digital apps to ease the access for

customers.

o American Concept

The effect of Globalization around the world is highly increasing in other developing

countries proving a certain validation of its presence. In Morocco and many other developing

countries, the need to adapt to certain American products is highly noticeable from many

consumers. We can take as an example Starbucks that has introduced the Moroccan market a

few years from now with the inauguration of “Morocco Mall” in the big city of Casablanca.

Starbucks being implanted in Morocco and slowly expanding in other big cities has known a

huge success thanks to the brand allocation its provided with. Our point is that 7-ELEVEN

provides many American products some Moroccan citizens are already familiar with, such as

7-ELEVEN’s star product “SLURPEE” that has encountered a huge success. What could also

provide a quick adaptation is the general American concept of the store in the way it serves

provides customers.

 BCG MATRIX (7-ELEVEN PRODUCTS)

o For a deeper understanding we aimed at a deeper assessment of 7-ELEVENS

“product profile” through the BCG matrix.

 7-ELEVEN Products

o Slurpee (frozen colored drinks)

o Big Bite (Fast food “hot dogs”)

o Private Brand products

o Coffee

o Fresh foods (sandwiches, frits, salads, bakery…)

o Gasoline

STARS ENIGMA
SlURPEE Ice tubes
BIG GULP Sanitary and hygiene products
BIG BITES
Fresh foods

7-11
CASH COWS DOGS
Household goods
Energy drinks & juices
Magazines
Alcohol & Cigarettes
stationary
Accessories

ENIGMA: For this quadrant the products are not massive, they are experiencing a high

market growth, meaning that many opportunities are provided to make money out of them. In

this case the products must require some sort of attention. These products are not considered

to be lost but are usually in the middle of an “ENIGMA”, meaning that a decision must be
taken. However, the products might need high investments and lot of cash to hold on to their

low market share for 7/11 to grow upon them. Following a strategic plan encountering some

sort of heavy investments, the products still have a great potential to fall into the “star”

quadrant or also “Cash cow” quadrant.

Strategic Plan: Investment (R&D), innovate in product development, divestiture or

diversification.

STAR: 7-ELEVEN’s best products and most popular ones are obviously in the “STAR”

quadrant holding a strong competitive position, the unit with a high market share in a rapid

growing industry. Products in this quadrant are mostly represented as the products that are the

most profitable and that presents big growth opportunities to the organization. While these

products generate high revenues they also require a huge amount of cash to sustain their

position in the star quadrant. Since, 7-ELEVEN owns a diversified portfolio, most of its

“STARS” product would end up in the “cash cow” which is most commonly the case.

Strategic Plan: Market development, Market penetration, Product development.

Cash cow: These products however, would experience high market share and a low market

share, generating more cash than the products actually requires. In this stage the products are

usually considered to be well established products in a maturity stage, constantly generating

profits on a long-term. For that reason, these products must be pampered occasionally to keep

blooming. These products at hand could also represent a great opportunity for the products in

the “ENIGMA” quadrant to turn into market leader, because of the cash “cash cows” provide.

This would initiate 7-EELEN to provide the lost costs f the company and invest even more in

Research &Development.

Strategic Plan: provide other products (ENIGMA) with investment funds.

These products don’t generate or consume any large amount of cash. For this specific reasons

this specific products should most of the time be divested.

Strategic Plan: Retrenchment or divestiture

 BCG predictions:

STARS ENIGMA
SLURPEE Sanitary and hygiene P

BIG GULP

BIG BITE

Cash Cow DOGS

Accessories

Alcohol & cigarettes

slower growth. Our strategy would be to maintain the investment over this project and hold it

while gaining market share for it to move to the cash cow quadrant.

Sanitary and hygiene P: (Enigma) The reason we have projected sanitary hygiene products

into the Cash cow quadrant is because of their high utility in the market and their efficiency.

For this we expect to perform well in the market. The strategy would for the cash cow to

provide its investment funds in this specific product for it to fall in the cash cow quadrant.

The reason it wouldn’t fall in the star quadrant is because of the simplicity of the product that

is commonly used by everyone.

Ice Tubes: (Enigma) This product would be represented as the newest one for the business

introducing the market. However, this product would be expected to reach success and

perform very well in the market considering any potential competitor. Our strategy would to

invest and reach a maximum market share and maximize the profits while achieving an

increasing market growth, for the product to fall into the STAR quadrant.

Accessories: (DOG) Our aim with this product was to make an exception out of the BCG

suggestions. This product would be a new concept for 7-ELEVEN that still has potential to

enter the market. Our purpose here would to think about a potential strategy of investment for

it to survive and start as brand new product in the “Enigma” quadrant.

potential growth possible. The product at hand would also incur losses and wouldn’t put up

the weight in front of competitors. Therefor, our strategy would be to disinvest this product.
 Refrences:

A growing global brand. (n.d.). Retrieved from http://franchise.7-eleven.com/franchise/the-

About 7-Eleven, Inc. (n.d.). Retrieved from http://www.vault.com/company-profiles/retail/7-

A success story fueled by customers’ needs. (n.d.). Retrieved from http://franchise.7-