Case Study of Seven-Eleven Japan Company
Supply Chain Management
Case study of Seven-Eleven Japan Company
A. Background
Seven-Eleven, a famous convenience store, was established in 1973 and had its first store in Tokyo in May 1974. It was found by Masatoshi Ito while he thought that superstores were the wave of the future after a trip to the United States.
The company was first listed on the Tokyo Stock Exchange in October 1979. During 1985-2009, the numbers of store and its annual sales experienced tremendous growth that the number of stores increased to 12753 and annual sales increased to 2785 billion yen. At the moment, Seven-Eleven Japan was the world’s largest chain in term of retail outlets.
The idea of convenience store was very popular immediately through the record of averaging almost 35 visits to a Seven-Eleven annually for every person in Japan.
B. Problems
Seven-Eleven was not the only one brand in the convenience store industry anymore. Japan’s convenience store sector gradually consolidated, with larger players growing and smaller operators shutting down. Therefore, Seven-Eleven need to make strategy to deal with the competitors.
Moreover, Seven-Eleven had a problem of limited geographic presence. Stores tended to be dense within prefectures where they were present. As the annual report stated that it looked for demand where Seven-Eleven stores already exist rather than filling in the entire map of Japan.
For the distribution system, the system worked on trust and did not require the delivery person to be present when the store personnel scanned in the delivery.
C. Questions 1. What has Seven-Eleven done in its choices of facility locations, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan?
i. Facility
Seven-Eleven focus facility locations as high efficiency. Seven-Eleven Japan based on its fundamental network expansion policy on a market dominance
Case study of Seven-Eleven Japan Company
A. Background
Seven-Eleven, a famous convenience store, was established in 1973 and had its first store in Tokyo in May 1974. It was found by Masatoshi Ito while he thought that superstores were the wave of the future after a trip to the United States.
The company was first listed on the Tokyo Stock Exchange in October 1979. During 1985-2009, the numbers of store and its annual sales experienced tremendous growth that the number of stores increased to 12753 and annual sales increased to 2785 billion yen. At the moment, Seven-Eleven Japan was the world’s largest chain in term of retail outlets.
The idea of convenience store was very popular immediately through the record of averaging almost 35 visits to a Seven-Eleven annually for every person in Japan.
B. Problems
Seven-Eleven was not the only one brand in the convenience store industry anymore. Japan’s convenience store sector gradually consolidated, with larger players growing and smaller operators shutting down. Therefore, Seven-Eleven need to make strategy to deal with the competitors.
Moreover, Seven-Eleven had a problem of limited geographic presence. Stores tended to be dense within prefectures where they were present. As the annual report stated that it looked for demand where Seven-Eleven stores already exist rather than filling in the entire map of Japan.
For the distribution system, the system worked on trust and did not require the delivery person to be present when the store personnel scanned in the delivery.
C. Questions 1. What has Seven-Eleven done in its choices of facility locations, inventory management, transportation, and information infrastructure to develop capabilities that support its supply chain strategy in Japan?
i. Facility
Seven-Eleven focus facility locations as high efficiency. Seven-Eleven Japan based on its fundamental network expansion policy on a market dominance