7-Eleven Case Study

7-Eleven Indonesia : Innovating In Emerging Markets

Case Study Report By Team : Es Podeng V2

Authors :                                                        Author’s Email:

Joshua Kenji Tanujaya                                Joshuakenjii@yahoo.com

Pangky Winata                                                Pangky10@gmail.com        

Andrian Indramawan                                        Andrian_95@icloud.com                

Proposed to Business School Universitas Pelita Harapan as a part of

Pelita Harapan Business Challenge 2017

Statement of Authorship

We hereby declare truthfully that according to our knowledge, in this paper there is no other work or opinion that has been written or published by another party , unless those that are explicitly quoted and mentioned in the quotations and references.

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Andrian Indramawan                                           Pangky Winata                           Joshua Kenji Tanujaya

Abstract

7-Eleven is known in the United States as a convenience store chain where customers can grab snacks, drinks and other everyday products on the go. In most parts of the world, it is a no-frills store with little emphasis on decoration. But in Indonesia,7-Eleven has been positioned as a trendy spot where young people spend time, surf the Internet and meet friends.

The purpose of this research is to find out whether 7-Eleven’s easy to imitate business strategy model would be sustainable enough to serve as a long lasting strategy for them, despite all the uncertainty and internal and external factors. Whether or not 7-Eleven could sustain its business model in the Indonesian market is analysed by studying the population’s opinions about the preferences of going into convenience stores. The research was conducted using a convenience sample, which does not provide fully reliable results, but it does give general guidelines about consumers’ images about the stores making it possible conduct the positioning analysis.                                            

The ideology based on which 7-Eleven should possess product and service differentiation and also distinguishing feature compared to the other convenience stores. Alfamart and Indomaret  has long established in Indonesia and therefore has product pricing advantage. However, they are not known for their own product. Therefore the most sensible option for 7-Eleven is to promote their own products and also adding additional values to shoppers.

The market analysis suggests that price is not the first factor in deciding which convenience stores to go. Convenience, product differentiation, and strategic location turns out to be the major factors on top of the price. The competitors are draining the market which care much about the pricing, not the convenience and product differentiation, so there is room for 7-Eleven to strive for that. As a result, it does seem both from the positioning point of view as well as based on the market analysis, that there might very well be room for 7-Eleven in the Indonesian market to expand.