7 Eleven Case Study

4490 Words Oct 8th, 2013 18 Pages
Introduction

Context
7-Eleven has been founded in the late 20s in Dallas Texas. After years of substantial growth, a Japanese company gained control in 1991. Over the years it has developed an extensive franchise network. This makes 7-Eleven the world’s largest franchisor, currently operating over 50,000 outlets. ("7-11 around the," 2013)

There is an important difference between the strategies of 7-Eleven Japan and 7-Eleven USA. Due to the high-population density in Japan, 7-Eleven Japan makes use of the market-dominance strategy. This implies that many small stores are opened in a new area supported by a distribution center. Trucks could be filled at the distribution center and sent to multiple shops on a route, which is the main
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Another main logistical consequence for 7-Eleven is to keep track of all the new information flows from this new service, for example orders from the customers, preferred delivery time and location of delivery. A new or updated IS is required to systematically process this data of information flows. To integrate a new IS into 7-Eleven’s current system can be challenging and also the start-up cost is high.

The main logistic issue discussed in this report is the movement of information flows. It is crucial for 7-Eleven to be efficient in processing the additional information flows generated by the new home shopping service. If, for example, the customer is not at home during the first delivery, the cost of delivery for 7-Eleven is doubled. Therefore, the information flow between the customer and 7-Eleven is of great importance. There should be a new information flow between the home-shopping service and its suppliers, carriers, distribution centers and customers. This concept is known as the supply chain. With all the new generated information flows from the home shopping service, it will be difficult to process this huge amount of additional data. One of the possible solutions to support this logistical issue and improve this process is through the use of social media.

Over the years social media has become an interesting and powerful tool for companies to improve the information flows between

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