Seven-Eleven Japan Co. -Supply Chain Drivers
SUPPLY CHAIN MANAGEMENT
CASE STUDY: SEVEN-ELEVEN JAPAN CONVENIENCE STORE CHAIN
Introduction:
This case study discusses the meteorological rise of a convenience store chain, seven-eleven Japan in the Japanese retail store business. We will analyze the factors responsible for the phenomenal success of the company in the retail business, with a supply chain perspective. The main aim of this analysis is to identify the supply chain strategy of the company and underlying combination of its performance drivers which have led to the best balance of efficiency/responsiveness trade-off for the company.
About Company:
Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in may 1974. In 2004 it was owned by the Ito-yokado group, which also managed a chain of super markets in japan and owned a majority share in southland, the company managing seven-eleven in the united states.Seven-Eleven japan realized a phenomenal growth between the years of 1985 to 2003. During this period, the number of stores increased from 2299 to 10303. Seven Eleven Japan represented Japan's largest retailer in terms of operating income and number of stores. In 2004, Seven Eleven accounted for 60 percent of the total net increase in the number of stores among the top 10 convenience store chains in japan . This growth had been very carefully planned , exploiting the core strengths that seven-eleven japan had developed in the areas of information systems and distribution systems.
Competitive Strategy:
To provide high-availability of a variety of reasonable quality products at reasonable prices.
Supply chain Performance Drivers for Seven-Eleven Japan:
Facilities: Focus: High Efficiency with adequate responsiveness.
To ensure efficiency, Seven-Eleven Japan based its fundamental network expansion policy on a market-dominance strategy. Entry into any new market was built around a cluster of 50 to 60 stores supported by a distribution center. Such
CASE STUDY: SEVEN-ELEVEN JAPAN CONVENIENCE STORE CHAIN
Introduction:
This case study discusses the meteorological rise of a convenience store chain, seven-eleven Japan in the Japanese retail store business. We will analyze the factors responsible for the phenomenal success of the company in the retail business, with a supply chain perspective. The main aim of this analysis is to identify the supply chain strategy of the company and underlying combination of its performance drivers which have led to the best balance of efficiency/responsiveness trade-off for the company.
About Company:
Established in 1973, Seven-Eleven Japan set up its first store in Koto-ku, Tokyo, in may 1974. In 2004 it was owned by the Ito-yokado group, which also managed a chain of super markets in japan and owned a majority share in southland, the company managing seven-eleven in the united states.Seven-Eleven japan realized a phenomenal growth between the years of 1985 to 2003. During this period, the number of stores increased from 2299 to 10303. Seven Eleven Japan represented Japan's largest retailer in terms of operating income and number of stores. In 2004, Seven Eleven accounted for 60 percent of the total net increase in the number of stores among the top 10 convenience store chains in japan . This growth had been very carefully planned , exploiting the core strengths that seven-eleven japan had developed in the areas of information systems and distribution systems.
Competitive Strategy:
To provide high-availability of a variety of reasonable quality products at reasonable prices.
Supply chain Performance Drivers for Seven-Eleven Japan:
Facilities: Focus: High Efficiency with adequate responsiveness.
To ensure efficiency, Seven-Eleven Japan based its fundamental network expansion policy on a market-dominance strategy. Entry into any new market was built around a cluster of 50 to 60 stores supported by a distribution center. Such
Bibliography: Case:Seven-eleven japan co. by sunil chopra-kellogg school of management book: supply chain management; sunil chopra and peter meindl web site of seven eleven japan co.