Assignment 1: To Build or Buy
Small Business Management
July 27, 2014
Assignment 1: To Build or Buy
1. Craft a brief strategy for a business concept that would directly compete with the small business you selected.
As an entrepreneur one must be willing to take risks and face uncertainty in order to pursue an opportunity and to make a profit (Scarborough, 2012). 7-Eleven is a very successful brand and franchise that is known worldwide. As a frequent patron of this established, an opportunity has been identified to directly compete with 7-Eleven. As a competitor in the convenience store market the establishment would be called G’s Stop N’ Go. As ...view middle of the document...
All employees will have to complete a mandatory training program with customer service being a key element. It will part of the store culture to greet all patrons with a smile and hello. If customers feel welcomed and treated well then they will return and let others know about their positive experience. While 7-Eleven might not be lacking customer service there are times when there is little to no interaction. At time the only interaction with between the customer and employee is at the register for the payment transaction. This leaves a void and potential to enhance the consumer experience and that is the goal of G’s Stop N’ Go. To always provide consistent and genuine customer service.
A key factor to the success of G’s Stop N’ Go will be location. Based on competitor research one of 7-Elevens’ key strengths is, “wide spread geographic reach adds stability to the company's revenue growth” (7-Eleven, Inc., 2013). 7-Elevens’ tend to be located on streets and intersections that have a constant flow of traffic and are right by other businesses or near shopping centers. This increases the ability to attract customers with locations in high volume areas. For example, in Springfield, VA, there are two 7-Elevens’ across the street from each other. One on Backlick Rd going South and the other going North. Both are located near the entrance of each shopping center. Due to the company being a startup it will not be possible for G’s Stop N’ Go to compete with 7-Eleven on this scale. The company’s first focus will be to establish its local brand and reputation. G’s Stop N’ Go first location must be easily accessible, visible, and in a high traffic and volume location. This will allow the company to receive a constant source of customers and establish itself in the area as a competitor.
A great opportunity that G’s Stop N’ Go will go after is the growing demand for organic products in the US, to boost the company's top line growth. Natural and organic food products segment is one of the fastest growing categories in food retailing (7-Eleven, Inc., 2013). Consumers across the US are showing increased preference for natural, fat-free and healthy food products. Food items containing trans-fats are losing market share to low calorie, low fat, natural and organic products (7-Eleven, Inc., 2013). According to Datamonitor research, the organic food market in the US grew by 7.7% in 2010 over 2009 to reach a value of $26.7 billion (7-Eleven, Inc., 2013). In 2015, the US organic food market is forecast to have a value of $40.1 billion, an increase of 50% since 2010, representing a compounded annual growth rate of 8.5% over the period 2010-15 (7-Eleven, Inc., 2013). The United States accounts for 45.3% of the global organic food market value. G’s Stop N’ Go will offer organic and natural grocery items in the store. The company will establish a special section in its stores for organic foods. Thus, by leveraging its product offerings in this growing category...