7-Eleven: Adapting to the World’s Many Cultures
The approach which best describes the company is product extension- communications adaptation strategy. This is since the firm has been keen on expanding in markets both in the US and outside the US. It has various outlets across the globe, a factor that has boosted its sales and overall growth. Product extension- communications adaptation is the courses in which an organization can penetrate an international market and is successful in conducting business in the foreign market (Kotler & Armstrong, 2013). 7- Eleven has clearly been able to achieve this, and as a result, emerge as one of the best firms in the world. It has localized its stores as per the taste and preferences of the various nations in which it has branches. Consequently, it has managed to gain the local consumer base’s credibility due to its quality services.
On a scale of one to five, the company scores a four on its service provision in its various global markets. This is since it has adopted a strategy of offering products and services based on the taste and preferences of each of its markets. As a result, it has managed to familiarize itself with all customers in not just America, but also nations such as Japan, with more stores despite the small population. Its excellent service provision has hence boosted its growth efforts, enabling it to own 50,000 stores in 17 nations (Kotler & Armstrong, 2013). This shows that it has been able to fit the needs of the respective local markets.
7 Eleven captures strategic positioning as a way of getting into a new market. It first identifies the market it intends to penetrate before embarking on a thorough marketing strategy. This helps understand its key competitors and, as a result, develops strategies that can quickly get into the market. As other brands struggle to find their place in the market, 7-Eleven can stand out for its marketing strategy. The firm also ensures to take advantage of the demographic opportunities, such as in the case of the Indonesian market, where more young people are accounting for almost 40% of the entire population (Kotler & Armstrong, 2013). The company then designs each of its products to its target population, ensuring a smooth entry into the market.
There is little evidence to indicate that the firm is struggling in any of its markets. In Indonesia, the company is doing relatively well. However, it has the challenges of keeping pace with consumer needs, a fast-moving economy, and a competitive environment. Nevertheless, its strategic positioning has been effective, making it experience further growth in the country. This is proof that it will continue succeeding in Indonesia. The company is also likely to succeed in the rest of its markets. It has continually dominated the United States and Japan, among many other markets due to its strategies (Kotler & Armstrong, 2013). There is hence a high probability that the firm will be able to of keep up with the competitive market.
Kotler, P., & Armstrong, G. (2013). Principles of Marketing (16th Global Edition).