Seveneleven japans integrated store information system. 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. Another 1,200 stores are slated to open this fiscal year, which will help. 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. The triplea supply chain, hau lee, hbr, october 2004. 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. 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. Seven premium under its private brand, seven premium, the group has developed products for seven eleven japan, including.
Supply chain management 711 japan history 7eleven is part of an international chain of convenience stores, operating under seveneleven japan co. 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. The tanpin kanri retail practice this case focuses on tanpin kanri, which uses both storelevel human knowledge and product information sharing. Seven eleven japan reinventing the retail business model. 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.
Sep 27, 20 introduction 7eleven is part of an international chain of convenience stores. Seven eleven does not allow direct store delivery in japan with all products flowing through its distribution center. 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. Seveneleven japan designed its supply chain with cluster of stores around dcs to facilitate frequent replenishment at its retail store. 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. The company was first listed on the tokyo stock exchange in october 1979. Similar to its strategy in japan, 7eleven outsource majority of ris to third party providers.
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. A competitive strategy is how the company tries to meet the needs of the customers while being competitive to other companies. Most of the remaining stores were located in north america. 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. 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.
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 japan case study solution case study analysis. Hw 1 homework 1page 6066 1 what is seveneleven japans. 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. With 6875 stores in japan and 47 stores in hawaii, 1997 sales 1. 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. I agree that seven eleven japan has achieved very good strategic fit between its competitive and supply chain strategies. 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. Superior value in terms of contents and services are essentials. Nov 17, 2009 read this business case study and over 89,000 other research documents. Similar to its strategy in japan, 7 eleven outsource majority of ris to third party providers. Making convenient to 7 eleven company in the retailing is essential to create, maintain and sustain competitive advantage.
Seveneleven japans competitive strategy bus adm351. Overview of seveneleven japan seveneleven japan has been. Supply chain management case study 1 seveneleven japan co. Eleven convenience stores, which have been with the thai society for two decades. Expansion strategy corporate store franchise store corporate store franchise store franchise store. Background seven eleven is a famous convenience store. In 20, convenience store operations from seveneleven japan and other subsidiaries in north america and china contributed 37. When seven eleven japan spots business opportunities, it works with suppliers to develop products and shares revenues with them.
The competitive strategy of seven eleven japan is to provide highavailability of a variety of reasonable products at reasonable prices. Such clustering gave seven eleven japan a highdensity market presence and allowed it to operate an efficient distribution system. 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. Question 4 question 5 seveneleven does not allow direct store delivery in japan but has all products flow through its distribution center. This case describes seveneleven japans logistics and information systems, and how they support its retail 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. Introduction to supply chain management bus adm351 uploaded by. Seven eleven japan supply chain analysis term paper warehouse. Clearly seveneleven japans infrastructure was a tremendous advantage. This presentation is about supply chain strategy in the 7eleven store.
Supply chain strategy at 7eleven linkedin slideshare. When seveneleven japan spots business opportunities, it works with suppliers to develop products and shares revenues with them. Seveneleven japan was getting three deliveries a day with a delivery cost of between 4 and 6 percent on the dollar. Seven eleven japans integrated store information system. Overview of seveneleven japan seveneleven japan has. Seveneleven japan designed its supply chain with cluster of stores around dcs. I agree that seveneleven japan has achieved very good strategic fit between its competitive and supply chain strategies. How 7eleven is taking convenience to the next level cstore. What business model advantage differs from competitive. Each case highlights the companys focus on customer relationships and how the channel is designed to maximize customer service. Sej continues to implement reforms to support continued progress.
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. Strategy of 7 eleven japan market dominance was the main objective of 711. Supply chain management 711 japan history 7 eleven is part of an international chain of convenience stores, operating under seven eleven japan co. 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. The innovative distribution system of 7eleven japan. Introduction 7eleven is part of an international chain of convenience stores. Established in 1973, seveneleven japan set up its first store in kotoku, tokyo, in may 1974. Japan, seveneleven japan sej draws in 18mn customers a day twice the daily average users of facebook and twitter in japan. 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. Read this business case study and over 89,000 other research documents.
Seven elevens supply chain strategy in japan can be described as attempting to micromatch supply and demand using rapid replenishment. Strategy of 7eleven japan market dominance was the main objective of 711. Seveneleven is revolutionising grocery distribution in japan. 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. The innovative distribution system of 7eleven japan the. Seven eleven japan point of sale distribution business. Case study of seveneleven japan company 1597 words bartleby. Cluster of 5060 stores supported by a distribution center dc. Seveneleven japan has translated its focus on convenience, quality, and service into five areas of special concern. Market dominance facilities 7eleven spread in japan 7eleven spread in usa 7eleven spread in hongkong 40,000 stores all around the world 20 18. 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. The strategy followed by 711 was to provide highavailability of a variety of reasonable quality products at reasonable prices.
Seveneleven japan stanford graduate school of business. Seveneleven japan sej opened its first franchise convenience store in the 1970s, when the. Of these stores, approximately 8,600 were located in japan and operated or franchised by seven eleven japan co. In 2004 it was owned by the itoyokado group, which also managed a chain of supermarkets in japan and. This allows for centralization of cooking capacity and low levels of inventory, but increases the cost of replenishment and receiving. Master thesis logistics management in retail industry, 7. The main risk for seveneleven is the potentially high cost of. A convenience store chain can improve responsiveness to this uncertainty using one of the following strategies, especially for fresh. The innovative distribution system of 7 eleven japan. 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. Seveneleven does not allow direct store delivery in japan with all products flowing through its distribution center. Established in 1973, seven eleven japan set up its first store in kotoku, tokyo, in may 1974.
Expansion strategy corporate store franchise store corporate store franchise store franchise store franchise store franchise store location. Once seveneleven japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support. Seveneleven japans competitive strategy is to provide customers the reliability to get what they need, exactly when they need it and where they are. Seven eleven japan supply chain analysis term paper. Itoyokado and seven eleven japan now owns the southland corporation, the us company which originated the seven eleven concept. For instance, two years ago, sej created an ecommerce company. Seven eleven japan has translated its focus on convenience, quality, and service into five areas of special concern. The right mindset for managing information technology. Supply chain management case study 1 seven eleven japan co. 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. Nov 01, 2002 seveneleven japan was getting three deliveries a day with a delivery cost of between 4 and 6 percent on the dollar. This case provides a synopsis of three companiesdell, inc.
What benefit does seveneleven derive from this policy. Once seven eleven japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support. Itoyokado and seveneleven japan now owns the southland corporation, the us company which originated the seveneleven concept. 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. Background seveneleven is a famous convenience store.
544 497 1018 319 1251 1052 860 1335 842 96 1315 1194 256 1266 734 758 960 1086 218 1026 30 667 1012 290 1493 759 549 1482 1579 1036 1572 809 1232 1112 415 70 69 467 1472 130 821 1305