SWOT Analysis of 7- Eleven in Indonesia

Strengths Opportunities

 Strategic Location  Large population on the

 Variation of product location
 Good service quality  High Technology
 Has a strong brand  Good will
name  24/7 open
 Wi-Fi availability  Offers leisure activities
 Chair and Table such as concerts
available

Weaknesses Threat

 Most of the guest is  Tight competition with

teenager other convenience store
 Lack of hygiene  The price too expensive
 Limited parking lot makes sales decrease
 Expensive

Strengths:

• 7-Eleven stores are located in commercial and office areas, but not in
public transport stations because they are not seen as premium locations. It
mostly focuses on big hubs in Indonesia.

• 7-Eleven has an innovative and varied product in the food and drinks
ready. Slurpee drink is one of the well-known because of its uniqueness.

• 7-Eleven Employees are very friendly to consumers.

• Availability of consumer Wi-Fi/ Internet connectivity attracts the
consumers more.

• Chair and a spacious table allow consumers to enjoy food and drink in
comfort.

Weaknesses:

• 7-Eleven Consumers are dominated by teenagers.

• Lack of hygiene due to employees not readily clean up leftover food or

former cigarette.

• 7-Eleven parking area is very narrow so sometimes customers park their

cars at the gas station next to 7-Eleven.

• Access roads are congested due to the large incoming cars and
motorcycles passing by at 7-Eleven.

• The price of the products offered are quite expensive compared to other
convenience stores.

Opportunities:

• Locations are located in densely populated areas to attract many

consumers to visit 7-Eleven.

• Has advanced equipment such as Slurpee maker unique.

• 7-Eleven Brand strong to attract interest and consumer confidence.

• 7- Eleven features local artists or live bands to further attract the

nongkrong-ing crowd at its store.

Threats:

• Intense competition among other convenience store or the mini market

nearby.
• The price is quite expensive to make consumers feel doubt to buy the
product 7-Eleven.

SWOT Analysis of 7- Eleven in Philippines

Strengths Opportunities

 Brand Recognition  Fresh food provided

 Francise System  Freebies and Discounts
 Convenience  24/7 open
 Has a good marketing
strategy
 Geographical presence

Weaknesses Threats

 Expensive  Intensity Competitors

 High Employee turnover  A lot of QSR in the market
rate  Lack of fresh food supplier
 Limited Assortment
Offerings

Strengths:

 7-Eleven is one of the strong brands of convenient store in the world.

The big sign of 7 can be recognized from far away anywhere you go.

 7-Eleven provides franchise system which make the business

expands faster. It allows local entrepreneur to own their outlets and
make profits. 7-Eleven can be considered as the largest player size
and global reach.
  7-Eleven has is convenience. By means of the concept itself it is
convenience store, 7-Eleven can easy to be approached or access by
the customers.

 Located all over the country, you can easily find the outlet by the
alley or anywhere you are.

 7-Eleven also carry its strength through the geographical presence.

With over 1,497 stores located all over the country, you can easily
find the outlet by the alley or anywhere you are. At the petrol station,
shop lots and shopping malls.

 At last but not the least, 7-Eleven has goods marketing strategies. No
matter the where is the area, people know the logo “7” with orange,
red, white and green color. 7-Eleven provides everything that people
needs when they feel uneasy to go to supermarket or when in an
emergency especially after 10 p.m. which most of the supermarkets
and shops already closed.

The Weaknesses

 7-Eleventakes high margins which mean the items sell in the outlets
are slightly expensive compare to price in supermarket.

 Besides, the weakness of 7-Eleven is because of high employee

turnover rate. Even 7-Eleven is well-known, many of the employees
turn out the job as working with 7-Eleven requires them to work in
shift which is in the morning or at night, Moreover, and most of the
employees quit the jobs because they want to find a more stable job
as they take this as a part-time job.

 7-Eleven is limited assortment offering. You might find the items you
need but you can have only small choices as 7-Eleven does not
provide all the brands that people want. On top of that, 7-Eleven is
not a first choice for shoppers that make it one of the weaknesses. For
sure people will go to supermarkets or a bigger store to buy groceries
or any of the daily needs as they can have more choices and stronger
power of purchases.

Opportunities:
  The opportunity in this company is fresh food provided. Every
morning, fresh meal will be available at 7-Eleven stores for people to
take away and get a quick breakfast.

 Next, the appearance of freebies and discounts is also opportunity in

this company. Discounts are gives depends on what its business
partner’s offer. Sometimes, when it comes to certain seasons. 7-
Eleven will have its own attraction as it is giving out freebies to
customer when they purchase certain amount. It is because the new
trend is increasing among the customers that they want to use these
freebies and discounts, even it is not what they need it or whether
they want to use these freebies after, they still want to have it.

 The opportunity in this company is not many convenient stores open

24 hours a day and 7 days a week. Therefore, 7-Eleven is one of the
stores that people can stop by in the middle of the night only to get
whatever they need.

Threats:

 The threat in this company is the intensity competitors. There are

many convenient store and other small-box retailers on the streets.

 The threat that may occur in this company is lot of QSR in the market.
As people knows there are lot of quick service restaurant or also
known as fast food chains such as McDonald, KFC and Starbucks that
make people has lot of choices to get a quick breakfast to start a daily
life.

 In addition, higher shrinkage on fresh food could potentially impact

margins. Some people might think foods sell at 7-Eleven are not fresh
as sometimes foods are place in the oven. Lack of fresh food supplier
also became a factor of this threat.
COMPARISON OF 7- ELEVEN IN INDONESIA AND PHILIPPINES

Both countries open 7- Eleven 24/7. They both have strong brand
recognition. They both have variation of products. 7- Eleven in Indonesia
was always crowded, but the customers don’t buy much. Mostly, the
customers go there to hangout and to enjoy the Wi-Fi connectivity. They
would bring their laptops along and stay for hours but only buy a single
drink. They offer leisure activities such as concerts. 7-Eleven stores are only
located in commercial and office areas, but not in public transport stations
because they are not seen as premium locations. It mostly focuses on big
hubs in Indonesia. However, 7- Eleven here in Philippines might not be that
crowded yet it is commonly visited by customers. They offer freebies and
discounts. Unlike in Indonesia, 7-Eleven in Philippines which have with
over 1,497 stores located all over the country, you can easily find the outlet
by the alley or anywhere you are. At the petrol station, shop lots and
shopping malls.
GROUP 4
Sheen Mystica Nonog
Jimie Basilio
Anjill Mae Murray Piloy
Kaye Alexis Corpuz
Jamela Mae Calica
Ryan Hipol