7-Eleven in Taiwan: Adaptation of Convenience Stores to New Market Environments
This case shows the expansion of 7-Eleven to Taiwan and the adaptation of the store format by its local franchisee to the new market environment. The core issue in this case is the balance between standardization and localization in business-format franchising across national borders. Despite keeping the store logo and convenience concept that was well established in the United States, the local franchisee of 7-Eleven in Taiwan re-formatted almost all aspects of the store chain, including its positioning, location, layout, and product offerings. In addition, 7-Eleven in Taiwan introduced a wide variety of new services for its customers, such as e-commerce (train or movie tickets), e-payment, mobile communications, pickup/delivery, and taxi services. The local franchisee, President Chain Store Corp. (PCSC), seemed to have struck the right balance between standardization and localization that allowed it to use service differentiation to gain competitive advantages over its rivals. In about three decades, it grew from zero to nearly 5,000 stores in Taiwan with over 50 per cent of the market, while expanding its reach to China and Thailand.
- International marketing (globalization of convenience stores; global standardization versus local adaptation of store formats and service content across national borders)
- Service marketing (issues related to service differentiation that provide extra value to customers and thereafter increase per-unit store revenues and market shares)
- International business (international expansion of service industries; franchising as mode of entry; optimal level of parent control over foreign operations)
Taiwan, Large, 2011
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