Services Marketing Analysis of 7-Eleven in Taiwan
Added on 2023-06-11
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SERVICES MARKETING
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SERVICES MARKETING
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BACKGROUND ON THE BUSINESS
7-Eleven is an organization founded in Dallas, in 1927. This is the period when the
southland ice company began to sell staples such as eggs in the region, as well as milk and bread
in its different locations, for the convenience of its consumers. 1The organization was focused on
consumer convenience, especially the provision of commodities in hours when consumers cannot
access them from other organizations at different times. The organization further extended its
operations to 24 hours in a day, and seven days a week, to capture the target market. 7-Eleven
continued to grow to more distinguished convenience stores in locations within which it operated
especially during the nights and on weekends. 2The organization was also keen to distinguish
itself from the traditional supermarkets especially through its embracement of extended working
hours. International expansion strategy was also further looked into by the entity, which made it
a more famous entity in the region, and different parts of the world including Canada, Korea,
Thailand, and Taiwan in the modern business platform.
7-Eleven has more than 36400 stores outside the United States and continues to boast of
more profits. 3In the year 1980, the organization went ahead to open its first store in Taiwan, and
the location maximized its chances of being noticed by most drivers and the pedestrians in the
region. The product assortment strategy was adopted by 7-Eleven and managed to occupy one of
the best locations. However, the poor performance which was registered by the organization,
1 Armstrong, Gary, et al. Marketing: an introduction. Pearson Education, 2015.
2 Tu, C.-C., Yu, T., Patterson, P. G. & Liang, H.-M. “From convenience store to community service centre:
The transformation of Taiwan 7-Eleven”. In C. Lovelock, P. Patterson & J. Wirtz, Services marketing: An Asia-pacific
and Australian perspective (6th ed., pp. 439 443). Frenchs Forest, NSW: Pearson. (2015).
3Wirtz, Jochen, and Christopher Lovelock. "Services marketing." People, technology, strategy. Eighth
edition. New Jersey, London, Singapore, Beijing, Shanghai, Hong Kong, Taipei, Chennai, Tokyo: World Scientific.
Google Scholar(2016).
7-Eleven is an organization founded in Dallas, in 1927. This is the period when the
southland ice company began to sell staples such as eggs in the region, as well as milk and bread
in its different locations, for the convenience of its consumers. 1The organization was focused on
consumer convenience, especially the provision of commodities in hours when consumers cannot
access them from other organizations at different times. The organization further extended its
operations to 24 hours in a day, and seven days a week, to capture the target market. 7-Eleven
continued to grow to more distinguished convenience stores in locations within which it operated
especially during the nights and on weekends. 2The organization was also keen to distinguish
itself from the traditional supermarkets especially through its embracement of extended working
hours. International expansion strategy was also further looked into by the entity, which made it
a more famous entity in the region, and different parts of the world including Canada, Korea,
Thailand, and Taiwan in the modern business platform.
7-Eleven has more than 36400 stores outside the United States and continues to boast of
more profits. 3In the year 1980, the organization went ahead to open its first store in Taiwan, and
the location maximized its chances of being noticed by most drivers and the pedestrians in the
region. The product assortment strategy was adopted by 7-Eleven and managed to occupy one of
the best locations. However, the poor performance which was registered by the organization,
1 Armstrong, Gary, et al. Marketing: an introduction. Pearson Education, 2015.
2 Tu, C.-C., Yu, T., Patterson, P. G. & Liang, H.-M. “From convenience store to community service centre:
The transformation of Taiwan 7-Eleven”. In C. Lovelock, P. Patterson & J. Wirtz, Services marketing: An Asia-pacific
and Australian perspective (6th ed., pp. 439 443). Frenchs Forest, NSW: Pearson. (2015).
3Wirtz, Jochen, and Christopher Lovelock. "Services marketing." People, technology, strategy. Eighth
edition. New Jersey, London, Singapore, Beijing, Shanghai, Hong Kong, Taipei, Chennai, Tokyo: World Scientific.
Google Scholar(2016).
3
especially during its introduction to Taiwan, made the management to reconsider its reformation
towards the initially adopted strategies for the sake of enhanced performance. Just like any other
organization, 7-Eleven is focused on profitability, which is coupled with the maximization of
margins, profitability, sales and the reduction of turnover rates. 4The management considers the
positive relationship between turnover rates and profitability; higher the turnover rate, the higher
the profit margins, which have helped the organization to move forward since its inception.
TARGET MARKET
Taiwan is the primary target market of 7-Eleven. Taiwan has a population of 639
individuals per square kilometer, which is the second highest population. 5This, in turn, leads to
the creation of excellent potential for convenience and growth, especially in most of the major
cities. In the year 1990 for example, 7-Eleven was ranked as the giant in the Taiwanese
convenience store industry, considering its accumulation of revenue amounting to $0.36 billion
per annum. A lot of competition faced the organization especially in the convenience store
market in Taiwan, which were located in the streets in different cities. 6The most intense
competition was experienced in most markets where the organization operated. The Taiwan
market is the most convenient and significant target for the organization, as well as all other
markets the entity is looking forward to venturing into, on the international platform.
MARKETING CONDITIONS AND POSITIONING?
4 Chesney, Thomas, et al. "Information richness and trust in v-commerce: Implications for services
marketing." Journal of Services Marketing 31.3 (2017): 295-307.
5 Grigoryants, I. A., E. Yu Bobkova, and A. A. Zharkova. "Marketing Analysis Of Consumer Behavior In The
Medical Services Market Of Samara Region." Наука Красноярья 6.2-3 (2017): 81-91.
6 Tu, C.-C., Yu, T., Patterson, P. G. & Liang, H.-M. “From convenience store to community service centre:
The transformation of Taiwan 7-Eleven”. In C. Lovelock, P. Patterson &
especially during its introduction to Taiwan, made the management to reconsider its reformation
towards the initially adopted strategies for the sake of enhanced performance. Just like any other
organization, 7-Eleven is focused on profitability, which is coupled with the maximization of
margins, profitability, sales and the reduction of turnover rates. 4The management considers the
positive relationship between turnover rates and profitability; higher the turnover rate, the higher
the profit margins, which have helped the organization to move forward since its inception.
TARGET MARKET
Taiwan is the primary target market of 7-Eleven. Taiwan has a population of 639
individuals per square kilometer, which is the second highest population. 5This, in turn, leads to
the creation of excellent potential for convenience and growth, especially in most of the major
cities. In the year 1990 for example, 7-Eleven was ranked as the giant in the Taiwanese
convenience store industry, considering its accumulation of revenue amounting to $0.36 billion
per annum. A lot of competition faced the organization especially in the convenience store
market in Taiwan, which were located in the streets in different cities. 6The most intense
competition was experienced in most markets where the organization operated. The Taiwan
market is the most convenient and significant target for the organization, as well as all other
markets the entity is looking forward to venturing into, on the international platform.
MARKETING CONDITIONS AND POSITIONING?
4 Chesney, Thomas, et al. "Information richness and trust in v-commerce: Implications for services
marketing." Journal of Services Marketing 31.3 (2017): 295-307.
5 Grigoryants, I. A., E. Yu Bobkova, and A. A. Zharkova. "Marketing Analysis Of Consumer Behavior In The
Medical Services Market Of Samara Region." Наука Красноярья 6.2-3 (2017): 81-91.
6 Tu, C.-C., Yu, T., Patterson, P. G. & Liang, H.-M. “From convenience store to community service centre:
The transformation of Taiwan 7-Eleven”. In C. Lovelock, P. Patterson &
The most significant strategic initiative was adopted by the organization in efforts to
increase efficiency and profitability, which is working with China Trust Bank, to set up ATM
stores. 7The primary aim is to allow all consumers to withdraw and deposit their cash, as well as
make purchases most conveniently. With this service at and, consumers will be able to make
payments for all their bills including electricity and gas in all the nearby 7-eleven stores. The
entire transformation of 7-Eleven stores from a traditional convenience store to a fully equipped
service center was not a simple exercise. However, the success of the store in the competitive
market is driven by the ability to build more efficient operating system. The organization has a
beneficial position in the market, owing to the competition in the service sector, which needs to
be neutralized through the provision of variety and quality in the long run.
Improvement of distribution efficiencies, among other developments, has helped the
organization acquire increased preference from consumers in the market. 8Initially, shop
assistants in the different locations were expected to deal with more than 32 deliveries from
different providers in a single day. 9This, in turn, led to the creation of a lot of disturbance doing
the service delivery process, especially since assistants could not receive goods and service
consumers at the same time. To improve its market position and image, in general, the
organization decided to increase its number of distribution stores in the region, which made it
7 Upshaw, Danny, Marcia Hardy, and Doug Amyx. "Retailing And Services Marketing." TheAssociation Of
Collegiate Marketing Educators (2016): 51.
8 Rosenbaum, Mark S., Mauricio Losada Otalora, and Germán Contreras Ramírez. "Promoting Problem-
Based Learning in Retailing and Services Marketing Course Curricula With Reality Television." Journal of Education
for Business 90.4 (2015): 182-191.
9 Puttonen, V. "Nine ‘tricks’ in financial services marketing." The Routledge Companion toFinancial Services
Marketing (2015): 471-481.
increase efficiency and profitability, which is working with China Trust Bank, to set up ATM
stores. 7The primary aim is to allow all consumers to withdraw and deposit their cash, as well as
make purchases most conveniently. With this service at and, consumers will be able to make
payments for all their bills including electricity and gas in all the nearby 7-eleven stores. The
entire transformation of 7-Eleven stores from a traditional convenience store to a fully equipped
service center was not a simple exercise. However, the success of the store in the competitive
market is driven by the ability to build more efficient operating system. The organization has a
beneficial position in the market, owing to the competition in the service sector, which needs to
be neutralized through the provision of variety and quality in the long run.
Improvement of distribution efficiencies, among other developments, has helped the
organization acquire increased preference from consumers in the market. 8Initially, shop
assistants in the different locations were expected to deal with more than 32 deliveries from
different providers in a single day. 9This, in turn, led to the creation of a lot of disturbance doing
the service delivery process, especially since assistants could not receive goods and service
consumers at the same time. To improve its market position and image, in general, the
organization decided to increase its number of distribution stores in the region, which made it
7 Upshaw, Danny, Marcia Hardy, and Doug Amyx. "Retailing And Services Marketing." TheAssociation Of
Collegiate Marketing Educators (2016): 51.
8 Rosenbaum, Mark S., Mauricio Losada Otalora, and Germán Contreras Ramírez. "Promoting Problem-
Based Learning in Retailing and Services Marketing Course Curricula With Reality Television." Journal of Education
for Business 90.4 (2015): 182-191.
9 Puttonen, V. "Nine ‘tricks’ in financial services marketing." The Routledge Companion toFinancial Services
Marketing (2015): 471-481.
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