Can 7eleven Succed in Germany

Key Points: Of the case

Intro:

• Robin Carter was searching a good German name for a Convenience store.

• In Germany shopping done before 6 pm, but now open until 8 pm.

• German government allowing stores to open for longer time.

• Supervisor of 7 -11 instructed Robin to analyzing and make a report on languages and cultural issues before entering in German market

• Can German market accept the American style convenience store?

7-Eleven. Inc

• Concept of convenience store was born in 1927.

• Employees of South land, Texas began to start to sell milk, bread and eggs on Sundays and evenings after grocery stores hours.

• People accepted this idea of this new service

• 7- Eleven had 24000 stores worldwide and app six million customers per day.

• Company succeed in overseas especially in Asian countries such as Japan , Taiwan ,south Korea and Thailand

• More than 9000 stores in Japan and Hawaii.

• Small number of licensed stores in Europeans countries.

• Increase in demand of convenience stores in Germany, 7 – Eleven had not entered in German market before 2003, As Competition was intense, margins slim , and mainly hours of operation limited by law to day time .

• With continuous change in environment , 7-Eleven want to reassess its opportunity for entering the German market

The Food Retailing Environment in Germany

• Population of 82 million and largest economy in Europe , Germany was the leading food and beverages market.

• There were stringent food law and regulation with regard to packaging and labeling, there were excellent opportunity for entry by companies from EU countries.

• High labor cost due to high standard of living.

• More pressure on full time employees rather part time employees.

• In Germany employees were paid 50% of contribution for health insurance, unemployment insurance and retirement benefit.

• Length of work 37-39 hours a week and vacation of 4-6 weeks

• German laws required