GROUP 16 l MBA
PHẠM Hạnh Dung
LƯU Hoàng Lê Giang
NGUYỄN Tiến Giang Phong
NGUYỄN Ngọc San
Table of contents
● Company introduction
● Financial analysis
● Business model canvas
● SWOT analysis
● Competitor analysis
“Give the customers what they want, when ● Recommendation
and where they want it.” ● Reference
— Joe C. Thompson Jr. (7-Eleven Founder)
Company Introduction
7-Eleven, Inc.
Industry: Retail (Convenience store)
Headquarters: Dallas, Texas, USA
Founded: 1927 (95 years old)
VN (70)
Presents on 19 countries with
more than 78 thousand convenience stores worldwide.
Company History
World’s First C- First self-serve gas and 75th birthday: “Free Digital
Store First 24/7 store self-serve soda fountain drink day” tradition Transformation
1950s 1965 1990s 2005 Present
1927 1963 1970 2002 2010s
Beyond Texas World first coffee to- Getting healthy: New ownership by Growing 7-Eleven
go: Slurpee® drink shipping fresh food Seven & i Holdings family with M&A
Financial Analysis (1/2) Currency unit: Billion JPY
Cap-to-rev < 1: low demand for
company’s share. Cap-to-rev has
small fluctuations between 48%-
67%.
Gross profit margin > 30% while
EBIT margin < 6%: SG&A
accounts for large proportion in
Revenue.
ROCE decreasing while Capital
employed increasing: 7-Eleven
did not generate efficient profit
from newly employed capital.
Negative CCC (2017 - 2021)
means inventory is sold before
7-eleven have to pay for it. CCC
mainly affected by DPO, while
DSO and DIO are quite stable.
Financial Analysis (2/2)
Business Model Canvas
Key Partners Key Activities Value Proposition Customer Relationships Customer Segments
● Suppliers ● Management ● 24/7 ● Customer support ● Small businesses
● Manufacturers ● Planning ● Convenient location ● Social medias ● Customers who
● Distribution centres ● Relationship with ● Quick services ● Loyal programs
customers are in a hurry or
● Logistics Partners
● Branding & ● Variety of original want to buy
● Advertisers Promotional Activities products things quickly
● Franchisees ● Sustainability
● Acceptance of
Apply system to support Key Resources Channels
different payment
the relationship with fran.
(1) Gross profit splitting ● 78,000+ stores in 19 methods ● Convenient stores
method countries (2021) ● Supermarkets
(2) Open account system ● Logistic resources ● Mobile App
(3) Guaranteed minimum ● Technology solution ● Website
gross income ● Information network ● Social media
Cost Structure Revenue Streams
● Human Resources ● Sales of goods
● Marketing ● Income from advertising
● Renting & maintenance ● Commission from partners
● Other operational costs 7 ● Income from franchising
E-commerce
Gross profit splitting with franchises
Sustainability
Innovating with Plant- Reimagining the Fountain Packaging from Promoting Sustainable
Based Plastic Cup Sustainable Resources Procurement
Competitor Analysis (1/2)
7-Eleven Alimentation Murphy USA
A low-price, high-volume fuel retailer
A chain of food and beverage A company operating and licensing
that also sells convenience
convenience stores convenience stores
merchandise (from 2016)
Origin USA(1927) Canada(1980) USA(1996)
Market cap (Current) $36.79 Billion $44.94 Billion $6.46 Billion
Revenue (2021) $42.21 Billion $33.41 Billion $17.36 Billion
Gross profit margin 39.65% 22.11% 10.65%
EBIT margin 4.67% 8.06% 3.48%
DIO 16.9 18.1 6.9
ССС (13.7) (1.8) 1.8
Competitor Analysis (2/2)
7-Eleven Alimentation Murphy USA
1. Gaining better visibility of
1. Data rich & Agile logistics systems: customer relationships.
- Advantage on stock & store
management (good DIO)
2. Responding to change
- 24h delivery service (placed order by faster with a flexible and
1. High-volume, low-cost
centralised platform.
Comparative phone -> receive in 2h) operations at its kiosks
- Low delivery cost (3000 ¥ ~ 27 $, free 3. Unifying sales people,
advantage ship) 2. Competitive pricing
processes, and
2.Fastest expand in some key markets performance. 3. Speed of service
(JP= 1st C.Store surpass 20,000 stores )
=> dominate the market & optimize the
4. Encouraging
distribution channel & warehouse usage entrepreneurship and
innovation.
SWOT Analysis
Strengths Weaknesses
New technology
Clear strategy to extend customer interaction &
Scan & Go
S W
go to eCommerce
Good Customer database in focused country Market coverage
JP: 8000 stores; 10 mil Visits, 7.7 Mil shopped/ Dominant in some package: JP, TH,
day US
Opportunities Threats
Packaging improvement: Re-inforce
O T Strong competitors with clear
strategies: Giant e-commerce Rakuten
branding via own packaging on their
+ Retailer Seigu GK (Walmart subsi.) =
current unique idea (shape, colour,
Rakuten Seiyu super network
convenience)
Recommendation
High gross profit margin (>30%), small EBIT margin (<6%), fluctuated
CCC & High SG&A imply operational issues
-> Deal with suppliers to have better payment period & supplier
relationship.
-> Intensively convert to e-Commerce will help with marketing, booster the
sales, reduce SG&A expenses, especially for franchises
-> Extend 24h delivery method in other market -> reduce the intensity of
B&M stores while improve EBIT margin
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