Managing Leading Change – Mini presentation

SWOT Analysis of 7 Eleven

Strenghth – Sonia
Covenient Location
7-Eleven has more than 50,000 locations throughout the world, giving
them a major edge in terms of location and convenience. As a
convenience store, its main value to customers is that regularly
purchased items are available in adjacent locations. As a result,
increased market exposure through a bigger number of stores will give
more convenience to a wider number of consumers.

Franchised Model
Many 7-Eleven outlets throughout the world are franchised. This gives
the company two advantages: the first is that it can continue to expand
its number of outlets around the world without incurring significant capital
costs, as the franchisee is typically responsible for the outlet's setup
costs; and the second is that the stores are run by motivated individuals
who have a profit incentive for the store to perform well.

Diversity Income
7-Eleven's parent business has effectively diversified its income streams
across different regions because the total network operates in multiple
nations. While this might be a weakness, it also gives a strength of
revenue stability, since a downturn in one nation is unlikely to have a
substantial influence on their total financial performance.

Overall Brand Equity

Consumers consider 7-Eleven to be the market leader in the
convenience store industry. This brand value translates into consumer
loyalty and lower price sensitivity, resulting in continuous revenue stream
stability across all of the company's locations.
Weakness – Sahan
High Rental Costs
As a result of need to locate 7-Eleven stores in extremely accessible
locations, they are likely to face increased rental prices. Because of their
increased operational costs, they will have to adopt a price premium
strategy. Some customers are willing to spend a little extra for ease and
speed of purchase, while others are more price sensitive.

High Staff Costs

Because the store is open 24 hours a day, 7 days a week in some
areas, this sort of retailing operation is likely to have a higher continuous
operational cost structure, similar to the high leasing prices mentioned
above. In order to maintain their profits, 7-Eleven will be forced to
increase their pricing offerings as a result of these rising costs.

Franchisees
Although the franchised business as a whole is a strength, managing a
big team of franchisees all over the world is a problem. This is due to the
fact that it transfers some direct management of each outlet's day-to-day
operations to the franchisee. A management staff is also necessary to
recruit, train, and supervise the different franchisees, which contributes
to the total operating cost structure.