Business Analysis of 7 Eleven in the Whitsunday Islands

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Table Of Content:

Subject Page Number

Executive Summary

Introduction

The business

Costumer base

Competitors

Technology

Market model

Estimations about demand and costs

Special pricing strategies for imperfect competition

Conclusion

Executive Summary

Introduction

7 eleven Whitsunday’s is a convenient store operates as a franchisee through 7- Eleven Store Pty. Ltd Australia, which will be located around different islands in the region. These stores will be focusing on meeting the needs of convenience-oriented customers, whom are spending their holidays on the islands or it residents through a 24 hours operating system and a product range that will meet their needs. The Whitsundays region contain eight islands that are popular tourism destinations that lacks convenience stores that can be a strong competitor to 7-Eleven in operations hours, pricing strategy and the strength of the brand. The standardized product range can meet the tourism traffic generated by the variety of accommodations spread along the islands. On the other side of the shore on mainland there are two of the biggest player in the retail industry (Coles and Woolworth) with a competitive edge using technology to provide online delivery to every island. However, the four firm concentration ratio was hard to predict due the different factors contributed to the retail industry. With a high level of barriers to entry, the new stores will unlikely have a competition in the meantime. Also, the start up franchises will receive financial and advertising support from the local council of the region and 7 eleven company.

Background about the Business

7-Eleven:

7-Eleven started their business in Australia by 1977, through their franchisee given to the Withers/Barlow family as a privately owned company. Since then the company has reached through it franchisees around Australia, an annual sale estimated by 1.4$ billion becoming the leader in the convenience store industry. In two years in a row 7-Eleven has kept it title “Franchisor of the year” through local voting, proving the satisfaction level of the business structure.

(7elevenfranchise.com.au, 2014)The company has adopted a business model around the world that built a global brand through an excellent business management and developing. (7elevenfranchise.com.au, 2014) The strength of the brand is reassembled among tourists, which can create a recall and memorable experience. A Real Estate expert in 7-Elevn chooses the most profitable locations to their franchisee through professional market research. Meanwhile the company will provide their stores with the designed layout with the cooperation between their marketing and construction teams. However, 7-Eleven is highly known for it performance and imagery thus each franchisee has to follow up to these rules.

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