A few months back, 7 eleven opened a branch at my neighbourhood. Before that there were already 2 mama shop around.
Today before my run, I decided to get a bottle of 1.5 littles of 100 plus. I wanted to get plastic cups, which my house ran out of. Thinking that the mama shop that I frequent probably doesn’t provide cups. Despite knowing that 7 eleven would sell at a higher price, I thought it wouldn’t be that bad if I can get some cups.
After getting a bottle of 100 plus from the refrigerator in 7 eleven, I asked the sales assistant whether do they provide free cups. She said that it available for sales. It cost 2 dollars for the whole package. I thought that was a rather bad deal and I don’t need so many cups. So I told the sales assistant that I didn’t want the bottle of 100 plus anymore.
I headed up to the nearest mama shop near by and found out that the bottle actually cost a dollars cheaper. They sell plastic cups at 10cent each. Without hesitating I brought it.
This set me thinking of how 7 eleven can actually profit in this highly competitive neighbourhood.
I come out with these conclusions.
The competiveness advantages of 7 eleven.
1. 7 eleven increase the price of the products. So even though with fewer costumers, with a higher profit margin they are still able to make profits.
2. It is open for 24hours. Which create a niches market at night.
3.Exculsive products, which the mama shop doesn’t have.
The competiveness disadvantages of 7 eleven.
2. Flexibility. Since most mama shops are operated by business owners, they have the ability to make last minute changes.
3.Motivation. Business owner are more likely to have to be motivated to provide extra costumer service since they livelihood are being determine by the well being of the store.
The above are just my humble view of convenient stores in neighbourhood. With no understand on retail marketing or information that big organization has, this is just a lame man point of view. Any comments or debate will be welcome.