April Huchel

International Business
Case Study #1: 7-Eleven

1. Of the five global product and communications strategies, which best describes 7-
Eleven’s approach?

I believe that 7-Eleven’s product and communications strategy is a combination of a few.

As far as their product strategy I believe it is a combination of product adaptation and
communication adaptation, also known as dual adaptation. Product adaptation involves
adapting a product to meet local conditions or wants in a foreign market, where product
invention consists of creating something new to meet the needs of consumers in a given
country. Communication adaptation is adapting your advertising messages to meet local
markets. 7-Eleven has done both of these in different countries.

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While Japan is very similar to the 7-Eleven’s in America, there are also very obvious

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differences. I believe that when 7-Eleven entered Japan they had a dual adaptation. They

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both had product and communication adaptations. When we examine entering Japan, the

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article states that 7-Eleven did something that they have never done before and became
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the country’s most popular eatery. 7-Eleven has never before had fine dining like food
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but they have offered food before. This would be considered a product adaptation. The
company knew that there was a want in Japan for a place where people could get quality
food fast and where they were also able to order groceries, pay bills, pick up mail, and
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buy tickets from. They also adapted their communication strategy when entering Japan
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by changing how they market to people in Japan. They advertised the finer foods and
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beverages they offer along with their other services. They really seem to push the fact
that they are not a gas station but instead a convenience store.
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Another country that 7-Eleven has successfully entered is Indonesia. I also think that
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there is a dual adaptation for 7-Eleven in Indonesia but I also think they have had some
product invention as well. Indonesia 7-Eleven’s are very different from the typical 7-
Eleven you find in America. They are the hot spot to hang out and in Indonesia they even
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have a name for just hanging out, “nongkrong”. This is important when examining the
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market they entered. They knew that people of Indonesia did not just want a convenience
in and out store but instead a place to hang out and connect with people and the internet,
much like an American Starbucks. From there they created the concept of 7-Eleven in
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Indonesia where they offer a place to sip coffee or beer, listen to live music, or just search
the Internet. They determined their target market to be people ages 18-35, especially
since people of that age have an ever-increasing need for wi-fi. They were able to figure
out want locals needed and desired and adapted their concept to fit those needs.

2. On a scale of one to five, to what degree does 7-Eleven adapt its offerings in each global

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 April Huchel
International Business
market? Support your answer.

In my opinion, 7-Eleven has been able to adapt its offerings in each global market very
well. I would give them a four on a scale of one to five. 7-Eleven does a wonderful job
researching the country and figuring out what the locals desire. They were able to figure
out what would be successful in Japan and did so well in figuring out their target market
and how to appeal to them that they exceeded the amount of American stores with having
more than 17,000 stores operating. In Indonesia, they not only adapted their offerings at
the store but also adapted the whole concept of the store by offering a place for locals to
hang out. They also adapted how they place stores, instead of having a store at every
corner like we see a lot in America, they instead focused on big hubs in the country. I
think that 7-Eleven is exactly right with their mission statement stating that, “At 7-
Eleven, our purpose and mission is to make like a little easier for our guests by being
where they need us, whenever they need us”, and they are doing exactly that.

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3. Which strategy does 7-Eleven employ for entering a new market? How does the

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company benefit from this approach?

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7-Eleven runs as a franchise which falls under the realm of licensing. Licensing involves
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entering foreign markets by developing an agreement with a licensee in the foreign
market. By franchising you are use a well developed and successful business plan and
expand it to different countries. Obviously, before offering franchises to a country the
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company needs to do a lot of research in what the market looks like and how to best serve
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customers in order to be successful. This is something I believe 7-Eleven has done very
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well. One advantage of franchising is that local investors are able to know the ins and
outs of the market while the company is able to give an already proven plan. Franchises
are also a lower-cost startup for investors and the chance of failing reduces dramatically.
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4. Will 7-Eleven continue to succeed in Indonesia? How about the rest of the markets
where it does business? Why or why not?
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I do believe that 7-Eleven will continue to be successful in the Indonesia market.

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However, I think that their sales will start to fall as they start to see more competitors in
the market. They were the first to have this concept in Indonesia, and it has been a big
success. Now they have proven this concept to be successful, they will start to see more
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competitors try to mimic their business plan. They are currently able to almost
monopolize the market because of a lack of competitors, but eventually market saturation
will happen.

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