CHAPTER I
INTRODUCTION
7-Eleven
Indonesia shows that new players still have a chance to develop business
despite the situation in Indonesian retail industry is full of competition. Modern
International Inc.managed to bring the franchise to Indonesia. Since opening
the outlets in 2009 until now in 2013 has expanded to have 84 outlets in
Jakarta. Development of 7-Eleven is one of the tangible evidence to suggest
that this is a good start in developing the retail business in Indonesia.
7-Eleven
stores founded in 1927 in Texas, USA. 7-Eleven name owned by an American
company that is Southland Corporation.
7-Eleven has developed in America and evolved to the World Countries and includes
Indonesia for 7-Eleven expansion program. In 1980 7-Eleven expansion into
Indonesia and tried to business, but reality turns into nothing. In the decades
that 7-Eleven is out of business in Indonesia.
In
2009 7-Eleven decided to work with one of Indonesian company, Modern
International Tbk. With the cooperation of the 7-Eleven convenience store may
have a license to expand the business in Indonesia. Without this cooperation to
the convenience store class will have trouble getting a permit in Indonesia if
held by a foreign company directly. 7-Eleven opened the first outlet in
Bulungan area, South Jakarta. Own retail industry in Indonesia is one of the
fastest growing industries in Indonesia. Some brands of convenience stores and
some have begun to try to follow even apply some business strategies that have
been run by 7-Eleven.
Modern International Company Profile
Modern
International was established in May 12, 1971 under the name Modern Photo Film
Company, which in 1997 changed to Modern Photo Inc.and in 2007 changed its name
again to Modern International Inc.. Modern International Inc.since 1971 is the
sole distributor for all Fuji Film products that operates in the field of photography
in Indonesia. Before Modern International Inc. operates in the field of retail,
Modern International Inc. operates in
the field of products and conventional and digital photography equipment,
printing equipment, hospital equipment, electronic, telecommunication, mobile
phone recharge products, copiers and equity investments in various businesses
in the fields of industry, services, retail trade photographic products. In
2009, Modern International Inc. entered the business with a retail convenience
store 7-Eleven franchise. By this they developed a retail concept that focuses
on food and beverage service fast convenience items as well as other products
through the management by one of their subsidiaries. Modern International Inc.in
2009 had a total staff of about 1577 people. A number of 593 employees under
the auspices of Modern International Inc.. Meanwhile, the company's subsidiary,
Modern Putra Indonesia Company also do photography and telecom retail business
which has been operating since 1998 and is also 7-Eleven retail business by the
number of employees reached 906 people.
7-Eleven History
7-Eleven
convenience store concept is a pioneer in 1927 in the company office Southland
Dallas, Texas. In addition to selling blocks of ice to refrigerate food, also
offering milk, bread and eggs. This new business idea turned out to be create
satisfied customers thereby increasing sales and is the world's first
convenience store. These outlets are not initially open for 24 hours instead of
7 am to 11 pm and then it was that later inspired the name 7-Eleven (from seven
to eleven), the first 7-Eleven stores are open 24 hours and then opened in 1962
in the city Austin, Texas. Since then the 7-Eleven operates on a 24-hour
official formally followed with the
opening of its new store in Las Vegas, Fort Worth and Dallas in the United
States in 1963. In 1980, Southland Corporation experiencing financial
difficulties and eventually sell its ice-processing division. Then finally
rescued by ItoYokado which is one of the largest franchise holder of 7-Eleven.
Finally Soutland Corporation can be detached from bankruptcy and successfully
through the crisis of the fall of the stock market in 1987.
Then
in 1991, the Southland Corporation 7-Eleven has sold most of his shares to the
company's Japanese supermarket chain, ItoYokado. Southland Corporation changed
its name to 7-Eleven, Inc. in 1999. 7-Eleven also sells some fast food menu
also has some original 7-Eleven itself. Menu - the original menu which is Cafe
Select is a combination of a variety of hot beverages such as coffee and tea.
In addition there is a kind called Slurpee drinks are carbonated and ice are a
Big Gulp soft drinks or commonly referred to as soft drink in great measure.
Since
2005 the ownership of the 7-Eleven is owned by Seven & I Holdings Co.., Inc.
which is a company that originated in Japan. In 2004, 7-Eleven has had more
than 31,400 outlets in the countries of the world including Japan, Taiwan,
Thailand, South Korea, China, Hong Kong, Malaysia, Mexico, Singapore,
Australia, Philippines, Indonesia, Norway, Sweden and Denmark .
7-Eleven Indonesia
In
Indonesia, 7-Eleven was actually present in 1990, but no longer runs due to
internal disputes among the franchise holder of the 7-Eleven. Until 2009 the
name was never heard again 7-Eleven in Indonesia. In 2009, 7-Eleven is back in
Indonesia after Modern International Inc.through its subsidiary Modern Putra
Indonesia Company became a master franchise of the 7-Eleven. The opening of the
first outlet in Indonesia conducted on November 7, 2009 with the first outlet
in the area Bulungan, South Jakarta. Within a period of 1 year from the
7-Eleven outlets are rising with the establishment of outlets in Kemang area,
Cipete, and Menteng. Until the end of the beginning of 2011 7-Eleven has 23
outlets spread across Jakarta. 7-Eleven is back in Indonesia amid crowded and
the high competition in the retail industry. 7-Eleven present arguably brings a
new concept and a little different when we compare with other convenience
stores that already exist in Indonesia. According to the Retail Director of Modern
Putra Indonesia Company (part of Modern International Inc) who is also the
director for 7-Eleven Indonesia, Lim Djwe Khian quoted from the official
website of Indonesia that the 7-Eleven 7-Eleven is a convenience store that
focuses on food and beverage products prepared misstatements that were
previously not available in Indonesia. Of differences with the existing
businesses that already exist in Indonesia.
Modern
Putra Indonesia Company is optimistic that the concept developed by 7-Eleven
Indonesia will succeed because the concept has been proven successful in other
countries in the developed world. In the 1-year period between 2009 to 2010,
7-Eleven arguably very successful in developing its retail business in
Indonesia. Recorded until the beginning of 2011, 7-Eleven has 23 outlets spread
across Jakarta. And all observations and research, outlets - outlets are always
filled with customers who come. This proves that the public response is very
positive in Jakarta on 7-Eleven. Consumers of 7-Eleven also consists of a wide
range of backgrounds and ages, but based on the observation that most of the
customers of 7-Eleven is made up of young people and students. Positive
response from consumers has also managed to make the position into a 7-Eleven
convenience stores are quite successful, even 7 Eleven brand can shift some of
the other competitors even have first been in the retail industry in Indonesia.
Some brands of convenience stores and some have begun to try to follow even
apply some business strategies that have been run by 7-Eleven.
Product
The
Gulp, Big Gulp, and Mini Gulp are genetically engineered to quench even the most
diabolical thirst and much flavour.
Every
Big Bite is made with 100% chosen ingredients and specially seasoned to
perfection. Add chili, cheese, onions and more for FREE.
Hot
beverages stall will serve you with Fresh selection such as Fresh Black Coffee
& Hot Tea, which are freshly brewed every 20 minutes.
Fresh
selection such as bakery, fried katsu, chicken wings, fresh rice bowls, and
many more.
Slurpee
is the best selling product 7-Eleven because of its uniqueness. This drink is a
soft drink that has been processed into ice and can be drunk and eaten at once
by using a straw and a spoon. This drink is processed by using a special
machine.
PROBLEM
7-Eleven
as
a
new company
in
Indonesia
should be
able to compete
with
existing firms.
for
it is necessary
in the
analysis of
the factors and strategies
that
can
make the
7-Eleven
successful
companies
in Indonesia.
Authors
would like to
know the position SWOT of
the company
7-Eleven
in order to
improve the
quality of
7-Eleven and strategies for compete with
existing firms.
PURPOSE
To
evaluate Strength, Weakness, Opportunities, and Threat of 7-Eleven Mampang
Prapatan of South Jakarta
ADVANTAGE
·
Take advantage of the opportunity and
strength (O and S). This analysis is expected to produce long-term plan.
·
Overcome or reduce threats and
weaknesses (T and W). This analysis is more inclined to produce a short-term
plan, the improvement plan (short-term improvement plan).
APPROACH
SWOT
analysis is a method for the preparation of the company's strategy or
organization that is a single business unit. The scope of a single business
that can be both domestic and multinational. Itself SWOT stands for Strength
(S), Weakness (W), Opportunities (O), and Threats (T), which means strength,
weakness, opportunities and threats or obstacles, which are systematically able
to assist in identifying external factors (O and T) and factors within the
company (S and W). The words used in the preparation of a business plan to
achieve the goal ripe for both short term and long term.
CHAPTER II
DISCUSSION
Theory
SWOT
Analysis is a systematic identification of factors to formulate the company's
strategy. This analysis is based on the relationship or interaction between the
internal elements, ie strengths and weaknesses, the external elements of the
opportunities and threats (Freddy
Rangkuti).
SWOT
Analysis is a strategic planning method used to evaluate the strengths
(strengths), weakness (weaknesses), opportunities (opportunities), and threats
(threats) in a project or a business venture. The four factors that form the
acronym SWOT (strengths, weaknesses, opportunities, and threats). This process
involves determining the specific purpose of the business venture or project
and identifying the internal and external factors that support and are not in
achieving that goal. SWOT analysis can be applied in a way to analyze and sort
out various matters affecting the fourth factor, then apply the SWOT matrix
image, where the application is how power (strengths) are able to take
advantage (advantage) of opportunities (opportunities) that exist, how to
overcome the weaknesses (weaknesses) that prevents profit (advantage) of
opportunities (opportunities) that exist, then how forces (strengths) able to
deal with threats (threats) are there, and the last is how to cope with weaknesses
(weaknesses) are capable of making threats (threats) to be real or create a new
menace (id.wikipedia.org).
|
STRENGTH
|
OPPORTUNITY
|
|
-
Strategic Location
|
-
Large population on the location
|
|
-
Variation of product
|
-
High technology
|
|
-
Good service quality
|
-
Goodwill
|
|
-
Wifi available
|
|
|
-
Chair and table are available
|
|
|
|
|
|
WEAKNESS
|
THREAT
|
|
-
Most of the guest is teenager
|
-
Tight competition with other
convenience store
|
|
-
Lack of hygiene
|
-
The price too expensive makes
sales decrease
|
|
-
Limited parking lot
|
|
|
-
Expensive
|
Strengths:
•
7-Eleven Locations Mampang Prapatan, South Jakarta was on a side street so that consumers can
immediately find the location easily.
•
7-Eleven has an innovative and varied products in the food and drinks ready.
Slurpee drink is one of the well-known because of its uniqueness.
•
7-Eleven Employee Mampang Prapatan, South Jakarta 's very friendly to
consumers.
•
Availability of consumer wifi so comfortable to linger in the 7-Eleven Mampang
Prapatan, South Jakarta .
•
chair and a spacious table allow consumers to enjoy food and drink in comfort.
Weakness:
•
7-Eleven Consumer Mampang Prapatan, South Jakarta more dominated by teenagers.
•
Lack of hygiene due to employees not readily clean up leftover food or former
cigarette.
•
7-Eleven parking area Mampang Prapatan, South Jakarta very narrow so sometimes
parking a car at the gas station next to 7-Eleven mampang.
•
Access roads are congested due to the large incoming cars and motorcycles
passing by at about 7-Eleven Mampang Prapatan, South Jakarta.
•
The price of the products offered are quite expensive compared to other
convenience stores.
Opportunity:
•
Locations are located in densely populated areas attract many consumers to
visit 7-Eleven.
•
Has advanced equipment such as Slurpee maker unique.
•
7-Eleven Brand strong to attract interest and consumer confidence.
Threats:
•
Intense competition among other convenience store or the mini market nearby.
•
The price is quite expensive to make consumers feel doubt to buy the product
7-Eleven.
