Q5. Identify the critical success factors of the business plan of 7dream.com

Have you even hear about 7dream.com?

It is the online store set up by 7-11. And now, it changed to 711net.jp

It have been very successful and let's investigate the reason why.

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7dream.com

1. Culture Issue 

Customers used to buy off-line (face-to-face)

Ø   Cooperates with the heads of several major Japanese companies to instill confidence to Japanese to shop at 7dream.com

Ø   Give confident to consumers

Traditionally cash-based society

Ø   Flexible delivery location

Ø   Allow credit card payment on the Internet or cash payment in physical convenience store

Ø   Only the code is needed for payment 

Ø   It is convenient

2. End-fulfilment of On-line Orders

End-fulfilment of On-line Order

Ø   Flexible delivery location 

Ø Allow pick up at specified address or physical convenience store
üConvenient
üFewer time constraint

3. Promotion

ØPromotes 7dream.com through mass media
ØUtilize other channels: digital broadcasting, television and magazines

This is the e-money created by 7-eleven.

4. Low Delivery Charges

Ø   Products:  directly from the warehouse of its suppliers

Ø   No inventory and warehouse cost

Ø   Leveraging on an existing delivery system

Ø   Customers would not be charged for extra cost

Ø   Potential saving in operating cost

5. Government Regulation

Government Support

Ø   Deregulated stock commissions in 1999

Ø   Lower the fees of telecommunication

Ø   Enable consumers to start trading via the Internet

Ø   Splitting Nippon Telephone& Telegraph (NTT) into 3 companies

Ø   Introduced competition into the telecommunications industry 

Ø   lower the price charged for Internet connection 

6. Expensive connection fees 

Ø   Allow Internet-enable multi-kiosks

It is free to use it at physical store to order from 7dream.com

Ø   Provide Flexible connection methods

Customers can access the network by:

n   Personal computer

n   Wireless devices such as mobile which paid based on amount of data transmitted

n   The internet-enable multi-kiosks for customers who do not have personal computer or not willing to pay the connection fee

Personal reflection

It is interesting to learn that 7-11 has its special localization of products and services. Then, we believe that it is worthy to travel the 7-11 store in different countries or places. We can say that 7-11 is an adaptable company. It tries to establish different convenient store’s image in different regions. For instance, 7-11 in Japan is having very different products and service compared with that of Hong Kong.

Meanwhile, I think most HongKongers would admit that 7-11 is the most convenient stores because you can also find one nearby. This is attributed to the successful business model adopted by 7-11 that to maximum the distribution network. At the same time, the combination of Own and Franchisee Stores is another key factor to have high distribution.