And it is set up its first store in tokyo in may 1974, it was found by masatoshi ito, the company was first listed on the tokyo stock exchange in october 1979 it had increased its share of the convenience shore market since it opened. The competitive strategy of seven eleven japan is to provide highavailability of a variety of reasonable products at reasonable prices. I would characterize the competitive strategy of seveneleven japan as to provide convenience, high availability of a variety of reasonable quality products at reasonable price level. What business model advantage differs from competitive. Since its establishment in 1973, seveneleven japan sej has always closely tracked changes in society and con sumer lifestyles and has taken steps to enhance its own operations to meet emerging trends. Seven eleven does not allow direct store delivery in japan with all products flowing through its distribution center. Seveneleven is revolutionising grocery distribution in japan. Another 1,200 stores are slated to open this fiscal year, which will help. A competitive strategy is how the company tries to meet the needs of the customers while being competitive to other companies.
Itoyokado and seven eleven japan now owns the southland corporation, the us company which originated the seven eleven concept. Seven eleven japan point of sale distribution business. Franchise systemexpansion strategy fundamental network expansion policy based on market strategy policy to ensure efficiency cluster of 50 to 60 stores supported by dc high density market presence to operate an effici ent distribution system stores in 42 of 47 of prefectures within japan franchises being highly sought after 45% of total gross profit at a store went to seven eleven japan and. The innovative distribution system of 7eleven japan. Introduction 7eleven is part of an international chain of convenience stores. Once seveneleven japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support. The main risk for seveneleven is the potentially high cost of. Seveneleven japan designed its supply chain with cluster of stores around dcs to facilitate frequent replenishment at its retail store.
How 7eleven is taking convenience to the next level cstore. The third largest retail company in the world after walmart and home depot. The total of the visits number per year for all the japanese people is almost 35 times, that means each japanese go on average 3 times a month to a seven eleven outlet. Seven elevens supply chain strategy in japan can be described as attempting to micromatch supply and demand using rapid replenishment. Seveneleven japans competitive strategy bus adm351. Seven eleven japan case study solution case study analysis.
Sep 27, 20 introduction 7eleven is part of an international chain of convenience stores. Mar 20, 2015 market dominance facilities 7 eleven spread in japan 7 eleven spread in usa 7 eleven spread in hongkong 40,000 stores all around the world 20 18. I agree that seveneleven japan has achieved very good strategic fit between its competitive and supply chain strategies. Supply chain management 711 japan history 7 eleven is part of an international chain of convenience stores, operating under seven eleven japan co. Japan, seveneleven japan sej draws in 18mn customers a day twice the daily average users of facebook and twitter in japan. The innovative distribution system of 7eleven japan the. Seveneleven japan sej opened its first franchise convenience store in the 1970s, when the. Seven eleven japan reinventing the retail business model. Overview of seveneleven japan seveneleven japan has been. Supply chain management case study 1 seveneleven japan co. When seven eleven japan spots business opportunities, it works with suppliers to develop products and shares revenues with them. Overview of seveneleven japan seveneleven japan has. What benefit does seveneleven derive from this policy. Seven premium under its private brand, seven premium, the group has developed products for seven eleven japan, including.
In 2004 it was owned by the itoyokado group, which also managed a chain of supermarkets in japan and. Master thesis logistics management in retail industry, 7. Seven eleven japan, which is a subsidiary of itoyokado, is the largest and most profitable convencience store chain in japan, with around 6700 convenience stores, all operating on a franchise basis. Similar to its strategy in japan, 7 eleven outsource majority of ris to third party providers. Supply chain strategy at 7eleven linkedin slideshare.
Supply chain management 711 japan history 7eleven is part of an international chain of convenience stores, operating under seveneleven japan co. Making convenient to 7 eleven company in the retailing is essential to create, maintain and sustain competitive advantage. Following last years meeting, the licensees leadership summit was held again this year in tokyo to provide a forum for information exchange and discussion for licensees from. Clearly seveneleven japans infrastructure was a tremendous advantage. Cluster of 5060 stores supported by a distribution center dc. For example, seven eleven japan has evolved the relationship between stores and the head office since its foundation, incorporating regional characteristics into merchandising and store operations. Case study of seveneleven japan company 1597 words bartleby. Overview of seveneleven japan seveneleven japan has been developing distinct franchise systems, aiming at bringing innovation and dynamism to small and medium sized retail stores, and achieving coexistence and coprosperity with franchisees.
Seveneleven japan designed its supply chain with cluster of stores around dcs. A convenience store chain can improve responsiveness to this uncertainty using one of the following strategies, especially for fresh. Most of the remaining stores were located in north america. Seveneleven does not allow direct store delivery in japan with all products flowing through its distribution center. This case provides a synopsis of three companiesdell, inc. The strategy followed by 711 was to provide highavailability of a variety of reasonable quality products at reasonable prices. Nov 01, 2002 seveneleven japan was getting three deliveries a day with a delivery cost of between 4 and 6 percent on the dollar. Introduction to supply chain management bus adm351 uploaded by. Of these stores, approximately 8,600 were located in japan and operated or franchised by seven eleven japan co. Established in 1973, seveneleven japan set up its first store in kotoku, tokyo, in may 1974. Seveneleven japans competitive strategy is to provide customers the reliability to get what they need, exactly when they need it and where they are. Seveneleven japan was getting three deliveries a day with a delivery cost of between 4 and 6 percent on the dollar. Ris implementation provides timely, accurate sales information on an itembyitem basis in which facilitates inventory management that is known to be the key success factor in cstore business where inventory turnover is fast and replenishment process. This allows for centralization of cooking capacity and low levels of inventory, but increases the cost of replenishment and receiving.
Seven eleven japan supply chain analysis term paper. Market dominance facilities 7eleven spread in japan 7eleven spread in usa 7eleven spread in hongkong 40,000 stores all around the world 20 18. Hw 1 homework 1page 6066 1 what is seveneleven japans. Its 10,000 stores dominate the convenience retail markets in most of the densely populated prefectures in japan, holding over onethird market share in that industry sector. Once seven eleven japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support. Description industry competitive trends rivalry barriers to entry it is considered that for new companies to enter to conveniencestore market is quite difficult because it has been already oversaturated market. Sej continues to implement reforms to support continued progress. In 20, convenience store operations from seveneleven japan and other subsidiaries in north america and china contributed 37. When seveneleven japan spots business opportunities, it works with suppliers to develop products and shares revenues with them. Question 4 question 5 seveneleven does not allow direct store delivery in japan but has all products flow through its distribution center. Seveneleven japans integrated store information system.
Itoyokado and seveneleven japan now owns the southland corporation, the us company which originated the seveneleven concept. The right mindset for managing information technology. The tanpin kanri retail practice this case focuses on tanpin kanri, which uses both storelevel human knowledge and product information sharing. Seveneleven japan stanford graduate school of business. Nov 17, 2009 read this business case study and over 89,000 other research documents.
Seven eleven japan supply chain analysis term paper warehouse. This presentation is about supply chain strategy in the 7eleven store. The goal of this case is to illustrate how a firm can be successful by structuring its supply chain to support its supply chain strategy. Oct 05, 2015 as 7eleven pointed out, omnichannel, or a multichannel approach to salesfrom the internet to smartphones to physical store sitesis a major part of the chains strategy. Seveneleven japan, which is a subsidiary of itoyokado, is the largest and most profitable convencience store chain in japan, with around 6700 convenience stores, all operating on a franchise basis. Supply chain management case study 1 seven eleven japan co. Strategy of 7eleven japan market dominance was the main objective of 711.
For instance, two years ago, sej created an ecommerce company. Each case highlights the companys focus on customer relationships and how the channel is designed to maximize customer service. The triplea supply chain, hau lee, hbr, october 2004. This case describes seveneleven japans logistics and information systems, and how they support its retail strategy. Background seven eleven is a famous convenience store. Such clustering gave seven eleven japan a highdensity market presence and allowed it to operate an efficient distribution system. Expansion strategy corporate store franchise store corporate store franchise store franchise store franchise store franchise store location. Similar to its strategy in japan, 7eleven outsource majority of ris to third party providers.
Based on various sources of literature concerning competitive advantage and strategic fits, distribution related to marketing and retail, distribution centers and warehousing, and information system apply in retail store. Read this business case study and over 89,000 other research documents. Eleven convenience stores, which have been with the thai society for two decades. Seveneleven japans business model since its establishment in 1973, seveneleven japan sej has always closely tracked changes in society and consumer lifestyles and has taken steps to enhance its own operations to meet emerging trends. I would characterize the competitive strategy of seven eleven japan as to provide convenience, high availability of a variety of reasonable quality products at reasonable price level. Seven eleven japan has translated its focus on convenience, quality, and service into five areas of special concern.
A strategy has been launched to strengthen management of seven eleven stores around the world by utilizing the business infrastructure cultivated by seven eleven japan. Background seveneleven is a famous convenience store. I agree that seven eleven japan has achieved very good strategic fit between its competitive and supply chain strategies. Seven eleven japans integrated store information system. What has seveneleven done in its choice of facility location, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in japan. The innovative distribution system of 7 eleven japan. Seveneleven japan has translated its focus on convenience, quality, and service into five areas of special concern. Logistics is admitted to be one of the most influential players in any supply chain and those companies who have succeeded in harnessing logistics power, turned it into their main operational tool against its rivals. Franchise systemexpansion strategy fundamental network expansion policy based on marketstrategy policy to ensure efficiency cluster of 50 to 60 stores supported by dc high density market presence to operate an effici ent distribution system stores in 42 of 47 of prefectures within japan franchises being highly sought after 45% of total gross profit at a store went to seveneleven japan and. Expansion strategy corporate store franchise store corporate store franchise store franchise store. What has seven eleven done in its choice of facility location, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in japan. Superior value in terms of contents and services are essentials. Established in 1973, seven eleven japan set up its first store in kotoku, tokyo, in may 1974.
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