Product details

7-Eleven Inc (7-Eleven) was the largest convenience retailer in the world with more than 50,000 stores, as of 2013. The retailer had entered the Indonesian market in 2009 through a Master Franchise agreement with PT Modern Putra Indonesia, Jakarta. Adoption of the localisation strategy had successfully helped the convenience retail major to establish its business as a 'trendy hangout' in Indonesian market. 7-Eleven had oriented its business model towards the younger generation, who loved to spend time on 'Hanging Out'. Besides, the retail store provided cheap food items to the customers along with free internet access. 7-Eleven had also arranged seating areas and various entertainment shows performed by the local artists. The store provided unique experience to the customers by offering local tastes in its food items such as ready-to-eat fried rice, doughnuts and flavoured ice Slurpees etc. The strategic plan of the franchise enabled the company to edge over the other established players in the Indonesian market. 7-Eleven was planning to open 440 stores by 2015 and 1,000 stores by 2020 in the country. However, the competitors such as Circle K, Family Mart, Lawson, to name a few, were also planning out their business in a cautious way, in order to throw a tough competition to 7-Eleven. Besides, few stores of the company were forced to shut down in the country due to the violation of the building permit administration in Jakarta. In the given scenario, the key challenges, however, remained that whether 7-Eleven's innovative strategies would be able to make it big in a market like Indonesia, where fierce competition came from the established players.