1. What factors influence the decision rearding the opening and closing of stores ? Why does 7- Eleven choose to have a preponderance of its stores in a particular location ?
Factors which influence the decisions regarding the opening and closing of stores includes the dominant location strategy which 7-Eleven is following to maintain its positions as the market leader, 7-Eleven aims to provide customers with what they want, when they want it. From a strategic perspective, one of the company’s key objectives is to micro-match supply and demand by location, season, and time of day. 7-Eleven designs and manages location, inventory,transportation, and information to support this objective. The company opens its store only to those areas where the potential customers exist rather open its stores everywhere in the country, And if they do so, this ultimately increase its cost which is against the design of its supply chain.These factors influence the decision regarding opening and closing of stores.
2. Why has 7-Eleven chosen off-site preparation of fresh foods and subsequent delivery to stores?
In Japan, fresh food constitutes a significant percentage of 7-Eleven’s sales. Most of the fresh food is cooked off site and delivered to the stores. To produce the best original products with higher quality than any competitors, 7-Eleven continue to create a hypothesis, test it, make anther hypothesis, and examine it over and over, believing that the taste and quality of the product must satisfy customers. SEJ executives repeatedly sample original fast-food everyday so that the quality of these products can be improved before they are sold. In addition to directly responding to the changing needs of customers, original items are highly effective in differentiating stores because they cannot purchase anywhere else. SEJ provides customers mainly with fast foods such as rice balls, sandwiches and delicatessen items. They also partner with manufacturers to improve the...
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