Seven-Eleven Japan’s competitive strategy PDF

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1. What is Seven-Eleven Japan’s competitive strategy ?

2. What is Seven-Eleven Japan’s supply chain strategy ?

3. What are Seven-Eleven Japan’s supply chain drivers (i.e. Inventory, Transportation, Facilities, information) ?...

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Jason Holland Introduction to Supply Chain Management Homework 1 September 23, 2015

What is Seven-Eleven Japan’s Competitive Strategy? Seven-Eleven is a corporation, regardless of international location, strive to provide the lowest prices for common goods. In addition, they strive to provide a variety of different products at these low prices in attempts to encourage repeat business. Seven-Eleven, in terms of competitive advantages, also rides the wave of the firstmover advantage. Especially in Japan, it was able to enter the marketplace as the first company of its kind. Before other companies could catch up, Seven-Eleven had fully taken hold of the open space in the marketplace. In addition to having the first-mover advantage, the Japanese Seven-Eleven stores were able to initiate a geographically dominant competitive strategy. Seven-Eleven set up stores that were geographically close to one another, and with Japan’s geography in mind, it essentially blocked competitors from infiltrating the marketplace especially in areas where there were Seven-Elevens every few city blocks. Another aspect of Seven-Eleven’s competitive strategy is the implementation of distribution centers. The strength in having these centers lies in the fact that it allows for quick restocking and product mobility. The Seven-Eleven chain in Japan also effectively implements micro-matching of supply and demand. Coupled with the speed in directstore-delivery and the distribution center, Seven-Eleven’s competitive strategy does prevent possible marketplace threats. Seven-Eleven’s competitive strategy can be summed up as a market-dominance strategy in Japan.

What is Seven-Eleven Japan’s Supply Chain Strategy? As mentioned earlier, Seven-Eleven Japan’s supply chain strategy revolves around micro-matching supply and demand. Under micro-matching, Seven-Eleven Japan is able to rapidly replenish the goods in each of its locations to prevent customers seeking out goods from a competitor due to lack of stock One element of Seven-Eleven Japan’s supply chain strategy is for their stores not to carry inventory but instead to rely on quick delivery from their distribution centers. This

allows for each store to control their inventory nearly perfectly, and it also prevents any financial loss on the corporate level due to misappropriation of goods. Seven-Eleven Japan also implements fast-responsiveness as a part of their supply chain strategy, this includes transportation which will be explained further in the supply chain drivers response. Efficiency and responsiveness are at the core of Seven-Eleven Japan’s supply chain strategy.

What is Seven-Eleven Japan’s Supply Chain Drivers? The drivers of Seven-Eleven Japan’s supply chain franchise can be broken down into a few different categories as seen in the homework prompt, here are a few highlights of each of the mentioned supply chain drivers: Facility: The Seven-Eleven Japan’s network consists of both company owned stores and stores that are owned by a third party. Both types of stores, as mentioned earlier, are spaced very close together in terms of geographical location. These stores are also in close proximity to a distribution center that allows for the entire franchise to remain efficient -as mentioned in earlier strategies as being one of the main goals. The distribution centers do not rely on a strict delivery schedule, as mentioned earlier, they rely on demand of each store in order to maintain efficient inventory allocation on a small-store and corporate level. In addition to the close distribution centers, there are also special centers throughout Japan that are dedicated to solely producing products such as packaged food and produce for Seven-Eleven Japan. Inventory: At the distribution centers there is no inventory, they rely on highly efficient responses on the small-store and corporate level to appropriately allocate goods. At all of the stores, the inventory is always fully stocked at all times to prevent loss of customers to competitors.

Transportation:

Seven-Eleven Japan relies heavily on efficient transportation from corporate, to distribution centers, to small-store. WIthout efficient transportation, Seven-Eleven would fail in its competitive strategy. First, transportation starts with the suppliers and is moved to the distribution centers, next it is moved from the distribution centers to the stores. Suppliers send the orders by moving truck to the distribution centers in bulk, to ensure that demands are met. Once the suppliers’ goods have reached the Seven-Eleven distribution centers, the distribution centers decide which stores need which goods. Goods are loaded into another truck and deliveries are made to multiple small-stores throughout the day. Without efficient transportation, as stated above, Seven-Eleven would fail in its competitive model. Another important thing to note is that Seven-Eleven in Japan also operates temperature controlled vehicles to further ensure that goods arrive at the stores in top condition. Information: Seven-Eleven Japan strives to provide the best and most-fluid information between store and corporation. Seven-Eleven Japan uses graphical ordering terminals to allow for efficient and error free inventory ordering. In addition, they have scanner terminals that accurate record the reception of inventory so all goods are accounted for. The implementation of the POS register provides corporate with real time data on sales and customer profiles. The data is analyzed at a corporate level so Seven-Eleven can see what data is being recorded in certain areas. This information tells Seven-Eleven what goods are popular at which location, who shops at their stores and which groups are unaccounted for. This information is also sent to distribution centers and suppliers, which in turn, brings us back to the goal of efficiency and responsiveness. Through effective flow of information, Seven-Eleven continues to succeed in their business strategies. It is important to note that these technical systems and programs where installed during an era where not many stores were relying heavily on computer operated systems. For example, not many convenience stores in the 1990’s were able to track information and customer information as efficiently as Seven-Eleven, this allowed them to propel into a high level of first-mover advantage over the competition.

Conclusion: To conclude the homework assignment, I think it is important to mention that SevenEleven Japan also relies heavily on good in-store customer service. On a corporate level, Seven-Eleven knows that without good customer service, all other business endeavors will be hindered. With the support of good customer service, an air-tight business model and highly efficient supply chain drivers, Seven-Eleven Japan holds its place as a highly successful convenience store....