The paper "Adaptation of Convenience Stores to New Market Environments" is a wonderful example of a Management Case Study. The global market has experienced increased growth in the convenience store industry. Although traditionally regarded as an alternative for the formal shopping organizations, these organizations have in the recent past outgrown that classification to create a niche of their own in the global market. However, the evolution, development, organization, and challenges in this industry remain unknown to many. This review addresses the industry in Taiwan with a case study on the 7 Eleven Company, originally an American Company, which has developed into a multinational convenience store Company. Question 1: Taiwan Convenience Store Industry Economic and Business Characteristics The convenience industry in the Taiwanese market is characterized by two key economic characteristics emanating from the growing and evolving consumer buying behavior.
On one hand, the industry has a large consumer base. Internationally, Taiwan I acknowledged as the second largest density populated area across the globe, only second to Bangladesh. As such, the increased population base increased the market for convenience store products in the industry.
In addition, the market unlike other economies in the Asian market received a liberal approach where the government allowed for free competition. As such, international and multinational organizations in the market experienced free and fair market competition allowing for increased investment in the market. Such fair competition allowed for the growth of the Taiwanese convenience store industry to its eventual global status. On the other hand, the industry is characterized by the Taiwanese population's need for Immediacy. As evidence by their trend in traffic and the existence and thriving of roadside food sellers, the population seeks to obtain services and products with ease and immediacy.
Therefore, this allowed the development and growth of convenience stores that availed required convenience products as and when required. Further, a major economic trait in the Taiwanese convenience stores industry is the existence of a vertical zoning structure. This is a trait unlike the horizontal zoning structures present in the US and Canada. With the vertical zoning structure, it implies that building and structures in the Taiwanese market house diverse services and business organizations.
For instance, a building’ s first floor would be a supermarket, the second a bank, and the other upper floors residential houses. Through such a structure, convenience store located in such areas had a continuous flow of consumers regardless of the season or daytime. The combination of these economic and business characteristics in the Taiwan industry facilitated its convenience store growth and expansion. Question 2: Taiwan Convenience Store Industry driving forces The driving forces in the Taiwanese convenience store industry can be cited in the political, technological and social changes in the industry.
The combination of these factors has facilitated the experienced increased industry growth. On one hand, the existing political climate in the Taiwanese market has facilitated the development of legal regulations favoring industry development. This can be cited in the governments’ liberalization process of the food industry despite its criticality in the nation. Instead of controlling the industry, the government conducts monthly oversight role to ensure price sanity is retained. As such, this has offered organizations an opportunity to compete effectively through their competitive advantage approaches. On the other hand, a major industry driving factor emerges as the changing societal and cultural structures in the market.
ReferenceCamarero, C., & Ma, J. G. (2011). Incentives, organizational identification, and relationship quality among members of fine arts museums. Journal of Service Management, 22(2), 266-287.