thesis presentation
TRANSCRIPT
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Business Model for Differentiation: Case Study Taiwan 7-Eleven and Shanghai 7-Eleven
Graduate Student: Jeremy Firster
Advisor: Dr. Jung-Chuen, Lin
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2Presentation Outline
Part I
1. Global Retail Market
2. Taiwan Retail Industry
3. Taiwan CVS Industry
4. Taiwan 7-Eleven
Part II
1. Chinese Retail Market
2. Shanghai Retail Market
3. Shanghai CVS Market
4. Shanghai 7-Eleven
5. Business Model Comparison
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GLOBAL RETAIL INDUSTRY
Overview
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Retail Formats – Customer Needs(Page 30-31)
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Highest Retail Growth in Asia(Page 30)
Global: Retail Sales Growth by Volume (%)
Global: Retail Sales by Value (US$ trillion)
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TAIWAN RETAIL INDUSTRY - MATURE MARKET
Competitive Structure
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7Taiwan Retail Structure(Page 32-34)
Market Share (%)
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8Taiwan Retail Structure (2)
• Highest Density of Convenient Stores in the world• 50% of retail value
(Page 32-34)
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9Strong Retail Growth(Page 34)
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10Taiwan CVS competition(Page 34)
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11CVS Industry Characteristics
Mature Market in
Asia(30 years)
46% Increase in
Sales
(2010-2015)
High Level of Vertical
Integration
Similar Strategies
(Page34-36)
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TAIWAN 7-ELEVEN
Overview
Business Model
Discussion of Critical Elements
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(Page 36-39) 13
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14Customer Segmentation(Page 40)
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Customer Segmentation (2)(Page 40)
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(Page 40) 16
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Supply Chain and Logistics Management (Hyper-Efficiency)(Page 47-48)
FMCG Partners• Economies of
Scope
Distribution Centers• Economies of
Scale
Store Locations• Convenience
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Information Systems Management
Tracking Customer Preferences
Order Information for Supply Chain Management
Franchise Management (Utilization)
Innovation Management (Implementation)
Information Systems
(Page 50)
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19Innovation Management
Meeting Customer Needs• Understanding
Changes
Increasing Same Store Sales• Leverage Channel
Management
Utilize Data• Information Systems• Franchise Source• Emergent Sources
(Page 50-51)
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20Brand Portfolio(Page 52-53)
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(Page 40) 21
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CHINA’S RETAIL INDUSTRY
Dynamic Changes
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(Page 55)
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Economic Development
Transportation SystemsInfrastructure Development
Government Regulations
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Cultural Traits
Consumer Psychology
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Mixed Retail Format Development(Page 56-57)
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26China’s Retail Structure
Trade Sector Store Numbers China Retail Format Market Share
(Page 57-58)
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Drivers of China Retail Growth(Pages 58-60)
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Drivers of China Retail Growth(Pages 58-60)
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Drivers of China Retail Growth(Pages 58-60)
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SHANGHAI, CHINA
Golden City of Opportunity
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Fast Facts: Shanghai
Largest Economic Hub
Largest Transportation
Hub
2020: 36% Global Retail
Sales
70% Population:
18-59
30% Regional Immigrants
(Pages 60-61)
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32Shanghai Convenient Store Industry(Pages 61-67)
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SHANGHAI 7-ELEVEN
(Page 67-70)
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7-Eleven as a late entrant
• Uni-President China Developments since 1992
• Licensing issue with parent company, Seven & I, lasting until 2008
• Late market entrant• Entry with “fast-food
island”
(Page 67-70)
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(Page 40)
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Market Entry - Segmentation
• President Hsu• “My competitor my
customer”
80% Eat Meals Outside Home
54% Target Customers: 2-4 visits
Breakfast: 16%
Lunch: 11%
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37Business Units
• Social Networks
• Economies of Scale
• Maximum Utilization
• Market Knowledge
Local Partners
Resource Sharing
Public Relations
Supply Chain and
Logistics
(Page 76)
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38Central Kitchen
$
Centralize Production
Key Element of Strategy
(Page 77)
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39Public Relations
Stakeholder Management
Managing Legal Restrictions
Hiring Employees
(Page 78)
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Business Model Comparison
Taiwan 7-Eleven Shanghai 7-Eleven
(Page 79-82)
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Business Model Comparison
Taiwan 7-Eleven Business Model
• Logistics and Supply Chain Management
• Mature Industry• Partner Manager• Resource Allocation• Enhanced Segmentation• Super Channel
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Business Model Comparison
Business Model Shanghai 7-Eleven
(Page 79-82)
• Central Kitchen• Managed Partner• Resource Sharing and
Creating• Effective Segmentation• High-End Channel
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Thank you!Questions or Comments?
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