7-Eleven store operations and business model

¶ … Eleven has become one of the premier locations that customer can purchase: gas, food, cell phones and CDs just to name a few. However, given the fact that they are owned by a Japanese holding company; means that management may not be able to understand: the overall challenges and risks facing the business. To determine the strengths and weaknesses of the company requires conducting a SWOT analysis of the organization. This will provide specific insights about: the overall strengths and weaknesses that are facing Seven Eleven going forward. ("Seven Eleven," 2010)

The Strengths, Weaknesses, Threats and Opportunities of Seven Eleven

Strengths

There a number of different strengths that Seven Eleven has as part of their business model. These include: real estate availability, a large assortment of local products, convenience, high profit margins, a franchise model that allows for increased expansion and standardized stores (that increase the overall return). These different elements are important, because they are showing how the combination of them has given the company, the ability to create a unique market (in a host different of segments). Over the course of time, this helps to improve the favorable image of the organization in the minds of customers. As they have the products and services that are in most demand, while ensuring that their locations are open 24 hours. Once this occurs, it means that the company will have a favorable brand image that they can build off of in the future. ("SWOT Analysis on Seven Eleven," 2011)

Weaknesses

The various weaknesses affecting Seven Eleven include: high whole sale costs, a limited number of products in each location, high staff turnover, it viewed as the destination of second choice and customers have trouble purchasing a meal. These different factors are important because, they are showing how there are variety of weaknesses that could have an effect on the profit margins of the organization. ("SWOT Analysis on Seven Eleven," 2011)

Opportunities

There are numerous opportunities that can allow Seven Eleven to increase their profitability in the future. The most notable include: fresh food product lines, a shift in consumers who want meals on the go and private label development. These different elements are important, because they are helping the company to redefine their business model, by focusing on those areas that are: new trends in the food service industry. ("SWOT Analysis on Seven Eleven," 2011)

Threats

There are also a number of different threats that could have an impact upon the company in the future. These include: increased competition from a variety of convenient stores, an emphasis on fast food locations that offer similar products / services (such as: the McDonald's service stations / convenient stores) and high food prices / lower quality. These different factors are significant, because they are highlighting how: the trends of the industry could be continuing to change. This can have an impact upon demand, as the ability to adapt to these threats; will determine how they will be successful in the future. ("SWOT Analysis on Seven Eleven," 2011)