ANALYSIS SWOT OF 7-ELEVEN MAMPANG PRAPATAN, SOUTH JAKARTA

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.

CHAPTER III

CONCLUSION

Development of 7-Eleven in Indonesia has very good speed as evidenced by the number of 7-Eleven outlets in Jakarta. Analysis of the success of Modern Putra Indonesia Company in developing a 7-Eleven in Indonesia lies in the selection of a strategic location. Development team conducted a survey to some strategic places and should be in the survey in terms of visibility, accessibility and its feasibility. When all has been fulfilled, it will be processed for rental and construction. Each site is reviewed by nearby with residential, office, school, hotel and located on the edge of the road is often impassable car or motorcycle rider. As happened in the 7-Eleven Mampang Prapatan of South Jakarta frequented consumers due to its strategic location and easy to reach.

BIBLIOGRAPHY

• ·         Rangkuti, Freddy. 2009. “Mengukur Efektivitas Program Promosi & Analisis Kasus Menggunakan SPSS”. Jakarta: Gramedia Pustaka Utama.
• ·         Hasan,Ali. 2008. “Marketing”. Cetakan 1, Yogyakarta: Media Pressindo
• ·         Sunyoto, Danang. 2012. “Dasar-Dasar Manajemen Pemasaran”. Cetakan 1, Yogyakarta: CAPS.

• 7 eleven id, “profil perusahaan” diakses dari http://www.7elevenid.com/1.html  pada tanggal 4 Mei 2013.

 Name : Dyan Ratna Sari (11209804)

Class : 4EA01