EXTERNAL FACTOR EVALUATION MATRIX (EFE)

OPPORTUNITIES WEIGHT RATING WEIGHTED SCORE

1. A new customers from online channel. 0.11 1 0.11
2. The new technology provides an opportunity to
7-Eleven to practices differentiated pricing 0.09 3 0.27
strategy in the new market.
3. The new environmental policies where the new
opportunities will create a level playing field for 0.06 4 0.4
all the in the industry.
4. The economic uptick and increase in customer
spending, an opportunity for 7-Eleven to 0.08 4 0.48
increase its market share.
5. The opening up of new markets because of 0.10
government agreement has provided 7-Eleven
an opportunity to enter a new emerging market.

THREATS WEIGHT RATING WEIGHTED SCORE

1. There is no regular supply of innovative 0.06 2 0.12
products.
2. The supply of new products is not regular thus
leading to high and low swings in the sales 0.12 3 0.36
number over period of time.
3. The new technologies developed by the 0.08 3 0.24
competitor or market disruptor.
4. The shortage of skilled workforces are also in
certain global market represents a threat to 0.10 4 0.4
steady growth of profits for 7-Eleven in those
markets.
5. 7-Eleven’s growing strengths of local
distributors also presents a threat in some 0.12 4 0.48
markets as the competition is paying higher
margins to the local distributors.
6. Intense competition where the stable
profitability has increased the number of players 0.08 4 0.32
in the industry.
TOTAL 1 3.18
SWOT MATRIX
STRENGTHS
 Possess the most amounts of convenience
stores amounting to 2,250 stores.
 Customers are able to pay their bills, top-
up mobile prepaid, and purchase gift cards.
 Most well- known convenience store brand
in Malaysia.
 Franchise program for local entrepreneurs
to open their own 7-Eleven.
 Store count increased by 103 stores or 4.8
% from 2,122 stores to 2,225 stores.
OPPORTUNITIES
 A new customers from online channel.
 The new technology provides an
opportunity to 7-Eleven to practices
differentiated pricing strategy in the new
market.
 The new environmental policies where the
new opportunities will create a level
playing field for all the in the industry.
 The economic uptick and increase in
customer spending, an opportunity for 7-
Eleven to increase its market share.
 The opening up of new markets because of
government agreement has provided 7-
Eleven an opportunity to enter a new
emerging market.
WEAKNESSES
 Increase overhead costs for stores.
 No mobile app to connect stakeholders
with the store.
 Low quality ready-to-eat products.
 Increase in product prices.
 Losing market share due to competitive
nature of industry.
THREATS
 There is no regular supply of innovative
products.
 The supply of new products is not regular
thus leading to high and low swings in the
sales number over period of time.
 The shortage of skilled workforces are also
in certain global market represents a
threat to steady growth of profits for 7-
Eleven in those markets.
 7-Eleven’s growing strengths of local
distributors also presents a threat in some
markets as the competition is paying
higher margins to the local distributors.
 Intense competition where the stable
profitability has increased the number of
players in the industry.
TOWS ANALYSIS

INTERNAL STRENGTHS INTERNAL WEAKNESSES

 Franchise program for  Increase overhead
local entrepreneurs to costs for stores.
open their own 7-  Losing market share
Eleven. due to competitive
 Most well- known nature of industry.
convenience store
brand in Malaysia.

EXTERNAL OPPORTUNITIES SO
 The economic uptick  The economic uptick
and increase in and increase customer
customer spending, an spending and help
opportunity for 7- increase its market
Eleven to increase its share as 7e have
market share. franchise program for
local entrepreneurs.
 The new technology
provides an  The new technology
opportunity to 7- helps 7e in pricing
Eleven to practices strategy in the new
differentiated pricing market and it
strategy in the new important because of
market. 7e is most well-known
convenience store.
WO
 The new technology
provides opportunity
to 7e to practices
differentiated pricing
strategy in the new
market and also can
overcome the problem
increase overhead
costs for stores.
 When the economic
uptick and increase in
customer spending, as
it increase market
share this give a way
to solve problem
losing market share.

EXTERNAL THREATS
 7-Eleven’s growing  As 7e is most well-
strengths of local
distributors also
presents a threat in
some markets as the
competition is paying
higher margins to the
local distributors.
 The shortage of skilled
workforces are also in
certain global market  7e have made
represents a threat to
steady growth of
profits for 7-Eleven in
those markets.
ST
 As increase overhead
known convenience
store brand in
Malaysia it still can
handle the issue about
local distributor
presents a threat
because of 7e brand is
strong enough to be in
the industry.  Losing market share
franchise program for
local entrepreneur,
thus it made 7e can
produce skilled
workforces to solve
the threats of shortage
of skilled workforces.
WT
costs of store have to
solve it by the new
technology in strategy
pricing to avoid
strengths of local
distributors that can
give a threat to 7e.
due to competitive as
the threat shortage of
skilled workforces can
be solve by the
economic uptick and
the franchise program.
Strength – Opportunity strategies

Strength – Opportunity strategies it is the company’s strengths that ca be used to maximize

the opportunities that have been identified. The economic uptick and increase in customer
spending, after years of recession and slow growth rate in the industry, is an opportunity for 7-
Eleven to capture new customers and increase its market share. The opportunity of this help 7e
more strength as make franchise program for local entrepreneurs and increase the market share
more wide in this industry.

The new technology provides an opportunity to 7-Eleven to practices differentiated pricing

strategy in the new market. The opportunity of this it is important for 7-Eleven to maintain the
business in the new market as 7-Eleven most well- known convenience store brand in Malaysia.

Weakness – Opportunity strategies

Weakness – Opportunity strategies it is the action the company can make to minimize the
weaknesses by using the opportunities that identified. The new technology provides opportunity to
7-Eleven to practices differentiated pricing strategy in the new market and also can to solve the
weakness of 7-Eleven which it is increase overhead cost for stores because with manage the pricing
detail of the item and management it can solve the overhead cost for stores.

The weakness of 7-Eleven is losing market share due to competitive nature of industry. The
opportunity of 7-Eleven can solve it which is When the economic uptick and increase in customer
spending, as it increase market share this give a way to solve problem losing market share.

Strength – Threats strategies

Strength – Threats strategies it is how the company use strength to minimize the threats. 7-
Eleven strength is the brand most well known in Malaysia. As 7-Eleven’s growing strengths of local
distributors also presents a threat in some markets as the competition is paying higher margins to
the local distributors. The strength of 7-Eleven itself which its brand is strong enough to be in the
market industry and new market industry.

The shortage of skilled workforces are also in certain global market represents a threat to
steady growth of profits for 7-Eleven in those markets. However, the strength of 7-Eleven which
have made franchise program to train local entrepreneur shows that 7-Eleven does not have the
issue to produce skilled workforces to solve the threats of shortage of skilled workforces.
Weakness – Threats strategies

Weakness – Threats strategies it is how the company minimize the weakness to avoid the
threats of the company. As increase overhead costs of store is the weakness of 7-Eleven have to
solve it by the new technology in strategy pricing to avoid strengths of local distributors that can give
a threat to 7-Eleven.

Losing market share due to competitive nature of industry and the threat shortage of skilled
workforces can be solve by the economic uptick and increase in customer spending, an opportunity
for 7-Eleven to increase its market share and Franchise program for local entrepreneurs to open
their own 7-Eleven.

Ways to control and overcome potential problems, during and after implementation.

 During implementation
As 7-Eleven is full satisfaction of customer to do everything that is why they
introduced “convenience for the customer”. There might be problem how the
workers have to handle the stress work in 7-Eleven to deal with customers, if they
cannot deal their stress then it cannot give full satisfaction to customer.

To overcome this problem, the manager have to take care their worker with their
health, the problem them have, give them support as to make they enjoy to work in
7-Eleven.

 After implementation
After implementation the potential problem might be happen is how manager to
recruit new worker that have good quality because if wrong pick worker then it will
give bad image for 7-Eleven.

To overcome this problem, 7-Eleven have to make supervision about worker attitude
and to deal it must have strict interview to avoid bad image will happen.

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