1.
What are the major differences between US and Taiwan regarding the following
parameters ?
a. Zoning
b. Role of convenience stores
c. Store Design
d. Product/Service offerings
Ans) The major differences between US and Taiwan regarding various parameters are stated
below.
Parameters US
Zoning  The zoning was Horizontal i.e.
clear segregation of offices,
residential buildings, Commercial
centres across blocks
 Stores were separated by long
distance and mainly located
around/near gas station and Street
corners
 Most stores were located in rural
areas where population density is
low
Role of  It acted as a source for
supplementary shopping of daily
convenience
use items that had run out
store  The stores stayed on fringes
Store  All stores have uniform layout,
floor plan, merchandising and
Design
followed government norms
 Stores had ample parking space as
they were located in rural areas.
Taiwan( by franchisee PCSC)
 Zoning was Vertical which was
characterized by individual high rise
buildings which accommodated offices,
stores, service centres, convenience stores in
same building’s different floors
 Each store was six minute walk apart,
previously located in residential community
and later on near high density city centres
 Each store served a community of
approximately 2500 people
 Due to various stores located in same
buildings, continuous footfall was there in
the store
 High end convenience store
 Pre- ordering service
 Pick-up and delivery services for laundry
etc.
 Delivering breakfast food, coffee etc.
 Seating and waiting areas for elderly and
children
 Size of the store is small which is around
700 square meters
 Standard size, format and floor plans were
not followed in Taiwan due to limited area
 Opportunities to build new stores from
ground led to high upfront cost
 Product/Ser Product Offerings Product Offerings ( Apart from regular
 Fast Food & beverages items)
vice
 Packaged pastry-bread  Publications
offering  Processed food  Cigarette-Tobacco
 Non- food items  Appliances
 Publications  Health and Beauty product
 Cigarette-Tobacco  Tea-egg
 Toys and Stationary
 Private Label goods
 Noodles
 Culinary items

Service Offerings by I- bon (an e-

commerce Kiosk)

 Ticket booking for travel

 Pay Credit Card Bills, personal taxes,
Vehicle license fees, parking tickets,
speeding fines, utility bills etc.
 Download and print documents from E-mail
if required
 Withdraw money

2. What are the major benefits achieved by 7/11 through their wide services offerings?

Ans ) Apart from various products, 7-Eleven also offered various kind of services which helped
it in following way.

1) Improved customer services: - Service such as pre-ordering & delivery and pick up helped 7-
eleven in improving their customer services. Customers has to spend less time which
increased their satisfaction level associated with 7-Eleven stores. As customers could
purchase by phone and pick up her order whenever it suited her and too applied on various
unconventional items helped in improving brand image of 7-Eleven.
2) Increased footfalls: - Offering services through e-commerce bank kiosk, i-Bon, which helped
customers in carrying out transactions like booking flight, rail, movie and opera tickets and paying
personal taxes, fines and licence fees etc also lead to increase in footfalls. These services attracted
more than 4500 footfall every day in turn helping in increasing revenue.
3) Increase in revenue: - 7-Eleven stores charged their customers for offering the services such
as paying bill online, booking & printing tickets etc which definetly helped in increasing the
revenue.

3. Did 7-Eleven benefits from their localization strategy financially?

Ans ) Yeah, 7-Eleven benefits from their localization strategy financially as we can see below.
a) Sales grew by a C.A.G.R of 11.98%
b) COGS as a percentage of sales decreased from 70% to 64%
c) Operating expense as a percentage of sales reduce from 18% to 15%
d) Revenue per store increased significantly from 27 million Taiwanese $ to 50 million Taiwanese $