Industry attractiveness of 7-Eleven Company
Question:
Using an organisation that has been in the news in the past two years, apply and critically evaluate how each of the following theoretical concepts influences strategic management practices in that organisation. Provide recommendations that would enhance strategic management in your chosen organisation.
The report gives focus on the activities by 7 eleven company. The report will provide a brief description of the industry attractiveness in the company. It also takes into consideration the activities and operations of the 7- eleven company. It is one of the largest company provides beverage products in the market. Also, the emphasis will be given to the resource-based view and also on capabilities and core competencies. The competitive advantage will also be taken into consideration so that the activities can be conducted smoothly.
Strategic management also plays a great role to assist the organization to conduct the activities in an effective manner. Strategic management is related to the proper implementation of the goals and initiatives that are considered by the top management of the organization on the behalf of owners so that goals and objectives of the organization can be accomplished.
7- Eleven is considered as an American Japanese international chain of the convenience stores. Headquarter of the company is situated in Irving, Texas. The organization conducts the activities by establishing franchises in various countries. There are 58,600 stores in more than 18 countries. The parent company is located in Chiyoda, Tokyo. There are almost 45,000 employees who are conducting their day to day activities in an effective manner. 7- Eleven offers beverage products and services to the consumers globally.
Industry attractiveness can only be enhanced when the company takes into consideration proper resources so that the goals and objectives can be accomplished effectively. Technology and proper resources play an important role in the sale and revenue of the company can be increased (Wong and Karia, 2010). To enhance the industry attractiveness porter five force models will be discussed so that competitive advantage can be attained worldwide. Porter five forces analysis consists of threats of new entrants, bargaining power of supplier, bargaining power of buyers, industry rivalry and threats of substitutes. These all the points are discussed below by taking into consideration 7 eleven (Menon et al., 2015).
It is one of the biggest challenges for the company to sustain in the competitive environment. If the products and services offered by the company are not according to the requirement of the consumers, then they have a chance to substitute the product with other competitors. For example, Nestle is a competitor of Cadbury. The company should give focus on maintaining proper prices so that the demand can be enhanced in an effective manner (E. Dobbs, 2014).
If 7- eleven is taken into consideration when it is evaluated that threat of new entrants can be low as well as high. There are many firms that are trying to enter in the competitive market. So if the new entrants take place then it will give negative impact on the overall profitability of the company. It influences the sale and revenue of the organization. So, 7-eleven should give focus on the government policies and switch cost.
Porter’s Five Forces model for competitive analysis
This factor also influences the actual financial position of the organization. If the buyer’s power is high then it can be evaluated that they have many options available in the market. If it is low then low choices are available in the market. The factors that give direct impact on the buying decision of the consumers are price, switching cost and bargaining leverage (Lusch and Vargo, 2014).
It is related to the capacity of the suppliers so that the prices can be reduced. There is high bargaining power of suppliers if the suppliers are less to offer the products in the market. So, in 7-eleven the supplier bargaining power gives impact on the input differentiation and distribution centers.
In 7-eleven the high competition gives impact on the activities conducted by the organization. The industry rivalry is high in 7-eleven at the time of offering the products and services. There are many organizations who offer same products in the market so the negative impact can be evaluated on the overall performance of the company (Sheth and Sisodia, 2015).
So it is evaluated that the model assists the company to attract customers towards the products and services. It also helps to compete in the competitive environment. These all factors are essential for the company so that the goals and objectives can be accomplished (Macey et al., 2011).
Resources are considered as an important part of the organization. If the company has proper resources, the organization can easily accomplish goals and objectives. Resources should be managed effectively so that the competitive advantage can be achieved. It also enhances the profit and revenue of the organization. The resource-based view is one of the strategies that help to achieve the competitive advantage. The company consists of many resources like assets, capabilities, and information. Resources give direct impact on the overall performance of the firm. The resources of 7-Eleven are expressed by taking into consideration products and potential of attaining competitive benefits in the company. The essential features that are related to resource-based view are:
- The products of the company are available worldwide. Like for example: The organization should offer products and services to the customers on a routine basis so that demand can be increased.
- The resources of the organization should not be replaced with any other resources. The resources can be taken into consideration so that same strategy and approach can be different from each other. The resources of the company should be proper so that the competitive advantage can be achieved by the organization.
- Resources should possess proper strategy so that competitive advantage can be attained by 7-Eleven so that proper competition level can be attained (7-eleven, 2016).
Also, the focus is given on the VRIN framework so that the capabilities and potentials can be sustained in a proper manner. The framework gives a positive impact on enhancing the products and services in the market. VRIN is also taken into consideration so that the long-term success can be achieved by the company. For 7-Eleven core competencies are the essential part of the company. It also maintains proper communication between the management and the employees who are working in the organization (De Wit and Meyer, 2010).
The main objective of 7-Eleven is to offer good quality food products worldwide. The company wants to gives focus on maintaining proper control so that the competitors can achieve profitability. The company also requires enhancing the improvement so that the competitive advantage can be accomplished. The value chain strategy also minimizes the duplication of production and also reduces the wastage of resources. The resources are utilized in a proper manner. If the company takes into consideration effective strategy then the company can easily accomplish goals and objectives prevailing in the market (Hollensen, 2015).
Resource-based view and core competencies of 7-Eleven Company
The 7-eleven company gives emphasis on analyzing the competencies and resources so that the company can survive in the competitive environment. The capabilities also enhance the operation management in the company. The training and development sessions are operated so that the capacity of the employees who are working in the organization can be enhanced. In 7-Eleven motivational tools are also taken into consideration, so that company can conduct the operations in an effective manner. Motivational tools enhance the capability of the employees to work in an efficient manner so that goals and objectives can be accomplished (Ellram et al., 2013).
The supply chain management of the organization also gives direct impact on enhancing the satisfaction level of the employees conducting their day to day operations. The company also offers discount and offers so that consumers can be attracted towards the products available in the market (Porter, 2011). The company also gives emphasis on increasing the process of delivery so that the large market share can be attained. The company takes into consideration proper technologies and resources so that in the high level of competition the company can survive in a proper manner (Babin and Zikmund, 2015).
Conclusion
By considering all the point discussed in the report, it is concluded that organization can only survive in the competitive market when proper resources are available. The resources are considered as an important aspect of the organization. If proper resources are not there, then it can give negative impact on overall performance of the company. In this report porter, five force models are also considered so that proper analyses of the resources can be done.
The report takes into consideration resource-based view approach that helps to compete in the competitive market. The paper also elaborates the VRIN framework so that the company can reach the target market. The advertisement strategies should also be taken into consideration by the company so that the sale can be increased.
References
7-eleven., (2016). About us, reviewed on 16 Dec 2017,< https://corp.7-eleven.com/corp/about>
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.
De Wit, B., & Meyer, R. (2010). Strategy synthesis: Resolving strategy paradoxes to create competitive advantage. Cengage Learning EMEA.
Dobbs, M., (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.
Ellram, L. M., Tate, W. L., & Feitzinger, E. G. (2013). Factor?market rivalry and competition for supply chain resources. Journal of Supply Chain Management, 49(1), 29-46.
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Lusch, R. F., & Vargo, S. L. (2014). The service-dominant logic of marketing: Dialog, debate, and directions. Routledge.
Macey, W. H., Schneider, B., Barbera, K. M., & Young, S. A. (2011). Employee engagement: Tools for analysis, practice, and competitive advantage (Vol. 31). John Wiley & Sons.
Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (2015). Effective Marketing Strategy-Making: Antecedents and Consequences. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. 224-224). Springer, Cham.
Porter, M. E. (2011). Competitive advantage of nations: creating and sustaining superior performance. Simon and Schuster.
Sheth, J. N., & Sisodia, R. S. (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge.
Wong, C.Y. and Karia, N., (2010). Explaining the competitive advantage of logistics service providers: a resource-based view approach. International Journal of Production Economics, 128(1), pp.51-67.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
