Hypothesis Statement: “Increase the percentage of food sold, open food shop named Kudsan next to 7-11, and allow blue flag pushcart to be in front of the store can help 7-11 compete with Lotus Express successfully”
Topic Category: Product strategy
Publication: Manager Online
Date: November 3rd, 2005
“7-11 focuses more on suburb areas and implements strategies to fight with Lotus Express”.
7-11 sees Lotus Express as its big competitor that has larger store and provides more variety of products to the similar target customers. Therefore, 7-11 are now trying on its new strategies. Firstly, it opens food shop named Kudsan next to 7-11. Secondly, the percentage of product sold in the store is changed from 70% of food products and 30% of non-food products to 80% and 20%, respectively. Also, it asks the Department of Inland Trade to let blue flag pushcart selling foods in front of 7-11’s store.
I partly agree and disagree with those decisions made by 7-11.
Although I think that 7-11 and Lotus Express are not direct competitors because they have different characteristics (size of store, target customers, numbers of stores, etc.), both of them are still retail store. I agree that 7-11 should do something in order to protect its customers from Lotus Express.
From all those strategies 7-11 plans to do, it implies that the company will focus more on foods. However, it brings both advantages and disadvantages. Firstly, 7-11 tries to differentiate itself by heading toward food products. However, many people perceive 7-11 as the convenience store that they can come and get anything for daily life (for example shampoo, detergent, cigarette, stationery, and many other things), not food shop (like Food Land or Food Lion). If 7-11 focuses even more on food products, it may lose customers who buy non-food products. Secondly, I think Kudsun and blue flag pushcart are overlapping strategies as they are both selling foods. Also, the blue flag pushcart will turn in front of 7-11 to be messy with tables, stools, and people. In addition, it can probably lower the 7-11’s image.