An Analysis of 7-Eleven’s Strategic Business and Information Systems Needs. Essay

Words: 2155
Pages: 9

An analysis of 7-Eleven’s Strategic Business and Information Systems Needs.

Q1. Evaluate 7-Eleven’s competitive advantage using the Michael Porter’s Five Forces model.

The 7-ELEVEN convenience store concept was created in 1927 by the Southland Corporation which, at that time, operated mainly as an ice, milk, and eggs retailer. By 1946, the Southland Corporation introduced a new convenience service that involved prolonging the opening time from 7 a.m. to 11 p.m. This was how the legendary 7-ELEVEN name came about. On April 28, 1999, The Southland Corporation officially changed their name to 7-ELEVEN INC. To date, 7-ELEVEN is present in over 20 countries and regions. Everyday, 200 million consumers of different race and lifestyles
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Q1b. How does the use of the Retail Information System help 7-Eleven achieve a competitive advantage?

According to Lu Cananza, director of retail information systems for 7-Eleven, Inc., by implementing the Retail Information System (RIS), 7-Eleven can achieve a competitive advantage by “supporting their business concepts and analyzes the data to recommend when to introduce new items and when to delete existing items that aren't selling well. At a central level, the information analysis reveals the best sellers by category, by store, by profit, by units, etc., and it also shows buying trends. There is a lot of thought about ensuring each store stocks the exact items that its customers want."

The Retail Information System provides store operators with modeling and analytical information allowing them to minimize the storage of excess inventory, stores order inventory on a weekly basis, and fresh foods are ordered on a daily basis. The system has access to weather patterns which helps to forecast if certain products will be in demand the next day, such as selling more coffee on colder days. Ordering in similar demographic regions also is evaluated to further identify buying trends, which again help guide stock levels of popular items. Using sales history, demographic and geographic trends help store operators make more