7-Eleven PhilippinesAlamar, Alyssa Joi D.Chan, Kimberly Joy E.

  

BA 190: Strategic ManagementProf. Mita Angela DimalantaUniversity of the Philippines

SPACE MatrixFinancial Position (FP) RatingsThe company netted P472.3 million during the first six months of the year, a 32.5% increase from the P356.5 million recorded a year earlier

6

PSC exhibited a record performance last year, registering a P1.01-billion profit or 15% more than the P873.3 million recorded in 2014

5

Shares in PSC closed P3 or 2.11% lower at P139 apiece on the Philippine Stock Exchange on midyear 2016

3

Total 14Industry Position (IP)  RatingsInternational chain of convenience stores that operates, franchises and licenses some 56,600 stores in 18 countries

6

The company has a bigger network of stores compared to other convenient stores in the country (higher visibility & accessibility)

5

The aggressive expansion contributes more to the company’s increased visibility and accessibility

5

Total 16Stability Position (SP)  RatingsThe economy of the Philippines may be weakening due to the depreciation of the peso to the dollar

-4

Political unpredictability of the current administration cause instability in the market economy

-3

Relatively stable growth however still applies in the convenient store sector -1Total -8Competitive Position (CP)  RatingsVery strong market positioning -2Positive brand recognition and aggressive advertising activities -1High rate of customer acquisition and retention -2Total -5

Results:• FP Average: 14 / 3 = 4.67• IP Average: 16 / 3= 5.33• SP Average: -8 / 3 = -2.67• CP Average: -5 / 3 = -1.67• Directional vector coordinates      x-axis: -1.67 + 5.33 = 3.66

y-axis: -2.67 + 4.67 = 2

7-Eleven Strategy Profile

CP IP

FP

SP

Recommended Strategy

• Aggressive7-Eleven Corporation has been steadily pursuing an aggressive 

strategy towards expansion and franchising its stores. The company wants to utilize its first-mover advantage, and it rightly does so with an aggressive strategy.

BCG (Boston Consulting Group) Matrix

• DogsThe dogs in the stores are the products that are slow sellers or dead items. These are mostly composed of the household goods, stationary, magazines, and accessories. The advantage of the slow sellers is that it helps keep the store fully stocked. It is also important because it becomes a convenient item when large chain stores are closed. Allowing the products to remain in the store will still bring in revenue even if a customer purchases it once a week or a month.• Cash CowsThe most important section of the BCG Matrix section is the cash cow because those goods are bringing in the money with little investment and allowing the company to invest largely in other ideas and merchandise. • Question MarksThe company should consider candy, and sanitary/hygiene products at a better bargain because of the economy. Those items tend to be more expensive for so little quantity. Bringing in an affordable brand with a good quality would boost those categories. Whereas, ice tubes sold per kilo in 7-Eleven stores seemingly appeal to store customers but only during peak seasons making its success questionable even though its market share for constant purchase continues to grow.• StarsBig Gulp fountain Drinks, Slurpees, City Blends Coffee, and Fresh Foods are known to be 7-Eleven’s best sellers. They generate ample amount of cash and continuously appeals to customers but because this type of products require machines and careful handling due to its perishable factor, while their market share grows rapidly they require investment to maintain their lead. Investment to this product includes the purchase of machine, repair and maintenance, and added amount of utility charges due to wattage use.

Positioning Map