International Journal of Advanced Culture Technology

The International Promotion Agency of Culture Technology (국제문화기술진흥원)
권호 표지
DOI QR코드

DOI QR Code

A study on analysis of 7-Eleven's competition structure and competitiveness using Porter's 5 Force model

  • Received : 2024.01.29
  • Accepted : 2024.03.10
  • Published : 2024.03.31
Download PDF
⟨ Previous Next ⟩

Abstract

Objective: The purpose of this study is to examine the competitive environment of 7-Eleven using Porter's 5 Force model to analyze the specific competitiveness of 7-Eleven that has maintained continuous growth as a competitive company. Methods: This study is a case study of 7-Eleven. Results: As a result of the analysis, 7-Eleven has reinforced its competitiveness with existing competitors by raising entry barriers by expanding domestic stores and developing overseas convenience store business, focusing on North America, based on economy of scale. In addition, 7-Eleven seeks to differentiate itself from other convenience stores by developing a "private brand" and strengthens its bargaining power with suppliers through the development of new products by gathering information and know-how of experts in product development based on customer needs. The bargaining power with customers has been strengthened by building loyalty and trust in the brand by allowing consumers to purchase the same products at the same price no matter which store they visit. As a threat to potential competitors, 7-Eleven has secured a competition advantage by raising the barrier to entry by concentrating stores in specific areas through a dominant franchise development strategy and increasing awareness of 7-Eleven among consumers. In the case of threats from substitute products, it was confirmed that 7-Eleven has overcome the threat from substitute products by opening 24 hours a day and providing various services such as ATMs and copiers.

Keywords

Acknowledgement

This research was supported by Kyungdong University Research Fund, 2023.

References

  1. K.K. Lee, "A Study on the Competitive Advantage Strategy of Convenience Store (CVS) in Japan: Focusing on 7-Eleven", East Asian Journal of Business Economics, Vol9.No1, pp.1-16, March 2021.
  2. K.K. Lee, "A Study on 7-Eleven's Core Competencies: Focusing on the VRIO Model", International Journal of Advanced Culture Technology, Vol.10 No.1 67-74 ,2022.
  3. S.H. Kim, "Japan convenience store is shaking? decreased number of stores in 14 years", Chosunilbo. Retrieved November 30, 2020, from https://www.chosun.com.
  4. T. Nagai, "Current situation and challenges in the convenience store industry". Management Sensor, Vol.7, No.1, pp. 16-25. 2017.
  5. T. Nagai, "Current situation and challenges in the convenience store industry". Management Sensor, September, pp. 16-25. 2020.
  6. Seven, Famima's daily sales exceed pre-Corona! Convenience Store FY22 Financial Results Ranking & Analysis. https://diamond-rm.net/market/accounting/461045/2023/06/27.
  7. Seven & I Management Report, Seven & I Holdings. Retrieved November 30, 2020.
  8. Seven & I Management Report, Seven & I Holdings. Retrieved February 3, 2021.
  9. T, Akimoto, "Analysis of competitive advantage in Seven-Eleven in Japan", Journal of Management, Vol.47, No.1, pp. 147-158. 1998.
  10. Seven & I Management Report, Seven & I Holdings. 2023.
  11. M. Porter. E. Competitive strategy, Free Press, 1980.
  12. M. Porter, and V. E. Millar, "How Information Gives you Competitive Advantage", Harvard Business Review, July-August, pp. 149-174,1985.
  13. M. Porter, E, "The five competitive forces that shape strategy", Harvard Business Review, 86(1), pp.137-145.2008.
  14. R. P, Rumelt, "Toward a Strategic Theory of The Firm", Competitive Strategic Management, New York, MA: Prentice-Hall, pp.556-570.1984.
  15. S.H.Park, C.T. Kim, Y.J. Jo, "How to Ensure the Competitiveness of Chong Kun Dang: Using the 5 Force Model and 5C Analysis", Innovation Enterprise Research (IER), Vol.7, No.1. pp.83-86, April 2022.