Supply chain management case study 1 seveneleven japan co. A culture that routinely handles data in an intelligent way demands evidencebased management. Seven eleven japan case study solution case study analysis. Seven eleven does not allow direct store delivery in japan with all products flowing through its distribution center. It builds on the disciplined process culture, but instead of being centralized, decisionmaking gets pushed out to the ranks. 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 case can be used to discuss how seven eleven has made consistent supply chain choices to support its business strategy of providing convenience to customers. Supply chain management case study of seven eleven japan company a.
Seveneleven japan realized a phenomenal growth between the years of 1985 and 2007. Seveneleven japans competitive strategy bus adm351. Background seveneleven is a famous convenience store. The generic items includes brand sold on every convenient store like coffee, chips, bread, eggs etc. Background seven eleven, a famous convenience store, was established in 1973 and had its first store in tokyo in may 1974. Seven elevens supply chain strategy in japan can be described as attempting to micromatch supply and demand using rapid replenishment. The chain was founded in 1927 as an ice house storefront in dallas. Japans 24hour convenience stores struggle to keep doors open all night due to labor crunch. We dont share your credit card details with thirdparty sellers, and we dont sell your information to others. Case study of seveneleven japan company 1597 words bartleby. The company was first listed on the tokyo stock exchange in october 1979. Seveneleven does not allow direct store delivery in japan with all products flowing through its distribution center.
Part i building a strategic framework to analyze supply. In 2004 it was owned by the itoyokado group, which also managed a chain of supermarkets in japan and. Success of 7eleven japan, the meet your next favorite book. Seveneleven japan is the countrys largest convenience store chain. This book brings together the strategic role of the supply chain, key strategic drivers of supply chain performance, and the underlying tools and techniques for supply chain analysis.
Once seven eleven japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support. 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. Seveneleven japan sej opened its first franchise convenience store in the 1970s, when the. Seven eleven japan supply chain analysis term paper warehouse. Feb 27, 2019 business corporate focus feb 27, 2019. One part of seveneleven japans competitive strategy is to provide high availability of a variety of. The success of 7eleven japan world scientific publishing co. As of 2004, it had 22,648 units worldwide, serving 6 million customers a day. Once seveneleven japan decided to provide responsiveness by rapid replenishment, it then structured its facilities, inventory, information, and distribution to support. How 7eleven is taking convenience to the next level cstore. After 70% of the company was acquired by japanese affiliate itoyokado in 1991, it was reorganized as a subsidiary of seveneleven japan co.
Example swot for 7eleven the marketing study guide. With 6875 stores in japan and 47 stores in hawaii, 1997 sales 1. Adhyatma satya wardhana 25203001 nur rahmawati 25203005 prita meilanitasari 25203201 ratih pamelawati 25203204. The condition for the seven eleven japan charge royalty and minimum guarantee applies to stores that are open for 24 hours a day.
Money can be received at more than 8,000 cash pickup locations such as sm malls, cebuana lhuillier, m lhuillier and other cash pick up partners. Supply chain management 711 japan history 7eleven is part of an international chain of convenience stores, operating under seveneleven japan co. Ken has a bachelor of business administration degree from the university of montevallo where he graduated cum laude in 1994. Of the 67,480 stores around the globe, 20,700 stores nearly 31% of global stores are in japan, with 2,705 stores in tokyo alone. Seven eleven japan sej, a franchised convenience store chain, combines several factors to produce worldclass strategy.
The competitive strategy of seven eleven japan is to provide highavailability of a variety of reasonable products at reasonable prices. 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. Supply chain management case study 1 seven eleven japan co. A case study of 7eleven japan business model community.
Seveneleven japans competitive strategy is to provide customers the reliability to get what they need, exactly when they need it and where they are. The book would have been better if it covers its competitors, lawson and. Seveneleven japan, with its empowered sales clerks, provides a good example of evidencebased management. View homework help homework 1 from supply cha 330 at university of wisconsin, milwaukee. 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. 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. Gitbook allows you to organize your book into chapters, each chapter is stored in a.
How 7eleven is taking convenience to the next level. In 20, convenience store operations from seveneleven japan and other subsidiaries in north america and china contributed 37. Established in 1973, seven eleven japan set up its first store in kotoku, tokyo, in may 1974. Clearly seveneleven japans infrastructure was a tremendous advantage. The case discusses the structure of the seven eleven japan supply chain in terms of its facilities network, inventory management, distribution, and information. Case study of seveneleven japan company 1597 words. Seven eleven japan, with its empowered sales clerks, provides a good example of evidencebased management.
Strategic differentiation in the japanese convenience. Background seven eleven is a famous convenience store. The tanpin kanri retail practice this case focuses on tanpin kanri, which uses both storelevel human knowledge and product information sharing. The main risk for seveneleven is the potentially high cost of. Annual sales in billion yen of seveneleven in japan 6. Case study of seveneleven japan company freebooksummary. Seven eleven japan has translated its focus on convenience, quality, and service into five areas of special concern.
Hw 1 homework 1page 6066 1 what is seveneleven japans. Seveneleven japan was getting three deliveries a day with a delivery cost of between 4 and 6 percent on the dollar. Established in 1973, seveneleven japan set up its first store in kotoku, tokyo, in may 1974. Jul 10, 2014 seven eleven japan is the countrys largest convenience store chain. Differentiation of product quality to cope with intensification of intraindustry competition. 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. Aug 14, 2010 number of stores ofseveneleven in japan 5. This is because of the key role it plays not only in forming this firms corporate strategy but also in developing its functional strategies for logistic support, merchandising and.
When analyzing 7eleven japans advanced and innovative management style, the authors of this book highlight the existence. I agree that seven eleven japan has achieved very good strategic fit between its competitive and supply chain strategies. Annual sales in billion yen of seven eleven in japan 6. Oct 01, 2002 when analyzing 7eleven japans advanced and innovative management style, the authors of this book highlight the existence of the integrated information system. Nov 01, 2002 seveneleven japan was getting three deliveries a day with a delivery cost of between 4 and 6 percent on the dollar. When analyzing 7eleven japans advanced and innovative management style, the authors of this book highlight the existence of the integrated information system. Using various information systems including satellite tracking to monitor the store performance is vital to its success. Business model, strategic management, competitive strategy. Jun 09, 2010 seven eleven s supply chain strategy in japan can be described as attempting to micromatch supply and demand using rapid replenishment. Seveneleven japan leading the way for retail empire. Supply chain strategy at 7eleven linkedin slideshare.
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. Students are able to articulate the strategic importance of supply chain thinking and support their ideas with evidence that can be built using models. Expansion strategy corporate store franchise store corporate store franchise store franchise store franchise store franchise store location. 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. Supply chain management 711 japan history 7 eleven is part of an international chain of convenience stores, operating under seven eleven japan co. A competitive strategy is how the company tries to meet the needs of the customers while being competitive to other companies. Seveneleven japan leading the way for retail empire nikkei. Seveneleven japan case study solution, seveneleven japan case study analysis, subjects covered information systems logistics supply chain management by seungjin whang, hide saito, steve van horne, casey koshijima, takafumi udea, taka. The right mindset for managing information technology. Through the use of the market concentration strategy, sej has been able to establish a distribution system and.
Case study of seven eleven japan company 1611 words 7 pages. Rapid replenishment micromatch supply and demand risks. Most of the remaining stores were located in north america. Seveneleven japan has translated its focus on convenience, quality, and service into five areas of special concern.
Homework 1 molly harmon homework 1 1 what is seveneleven. Characteristics of seveneleven japans systems that support basis of a mutual trust relationship. The main risk for seven eleven is the potentially high cost of transportation and receiving at stores. Lawsons strategy differs from its competitors in many ways. 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. Below is the pricing strategy in 7 eleven marketing strategy. Agenda history convenience store chain responsiveness risks. I agree that seveneleven japan has achieved very good strategic fit between its competitive and supply chain strategies. It remains hungry for growth and open to new ideas, characteristics that have helped it strengthen its position in japans.
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. It was found by masatoshi ito while he thought that superstores were the wave of the future after a trip to the united states. In the next 10 years, it plans to double to 20,000. Southland and seveneleven japan, harvard business school, case n9795051. When analyzing 7eleven japans advanced and innovative management style, the. Of these stores, approximately 8,600 were located in japan and operated or franchised by seven eleven japan co. Gross profit is equal to net sales minus net cost of goods sold, which is calculated by subtracting costs of inventory loss, disposal of merchandise, and rebates from gross cost.
Supply chain management chapter 1 hw solutions 1 what is. Seven eleven japan supply chain analysis term paper. Seven eleven japans supply chain decisions were made based on this strategy. Overview of seveneleven japan seveneleven japan has. Strategic differentiation in the japanese convenience store. The name 7eleven was originated in 1946 when the stores were open from 7am to 11pm. Sejs ability to differentiate its operations from those of competitors. Original products of group companies excluding seveneleven japan. Sejs success factors include their franchise arrangements. It remains hungry for growth and open to new ideas, characteristics that have helped it strengthen its position in japan s. Gitbook allows you to organize your book into chapters, each chapter is stored in.
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. After serving in a variety of leadership roles at 7. 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. Seveneleven japans competitive strategy bus adm351 studocu.
Supply chain management case study of seveneleven japan company a. 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. What business model advantage differs from competitive. 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. This case describes seveneleven japans logistics and information systems, and how they support its retail strategy. Introduction to supply chain management bus adm351 uploaded by. Seveneleven japan designed its supply chain with cluster of stores around dcs to facilitate frequent replenishment at its retail store. Seveneleven capabilities seveneleven policies 7dream concept seven eleven cdcs outsourcing replenishment pros and cons. Philippine money transfer service or mobile remit sa pinas is a service available only via money transfer app. 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. Sej continues to implement reforms to support continued progress.