Tutorial 8 (Week 9) Lecture 8: Strategies for competing in international markets
Question 1
SukiMart
7-Eleven Malaysia is the pioneer and market leader of convenience store in Malaysia. In 1984,
Berjaya Corporation obtained the master franchise from 7–Eleven, Texas, U.S.A. As at 31 December
2017, it has a total of 2,225 stores serving more than 900,000 customers per day. There were 2,083 or
93.6% corporate owned stores and 142 or 6.4% that were operated by sub-franchisees. The closest
competitor is MyNEW.Com which started as newspapers and magazines outlets and transformed
itself to be convenience store in 2013. The company owned its convenience stores which today has a
total 374. Another home–grown convenience store is KK Supermarket which has gained a strong
foothold in Malaysia.
To expand its retailing business in the Malaysian market, SukiMart, a famous Japanese convenience
store chain, has to choose between two options: joint venture or franchising. SukiMart has received
the business plans from a few Malaysian organisations. Among these business plans, SukiMart was
interested in two, one from Rain Sdn Bhd suggesting a joint venture, and another one from Chuko Sdn
Bhd suggesting franchising.
SukiMart wished to open 300 outlets in Malaysia within the next five years. The quality of the
products and the services must be maintained so as to secure its reputation and to ensure customer
