Name: Adolfo Rodriguez
Panther ID: #1037779
Tanpin Kanri: Retail Practice at Seven-Eleven Japan
Japan was a seller’s market until the 1970s, but as profits decline in the late 1980s, a buyer’s market began, necessitating reform in the retail industry. Reason for this shift was ownership of objects was very high among Japanese consumers. “Toshifumi Suzuki, Chairman and CEO of Seven & I Holding”
Established in 1974 as a small licensee of 7-Eleven, Inc., Seven-Eleven Japan grew to become the leading convenience store in Japan by 2005 in terms of operating income and number of stores. They emphasize on fresh merchandise, innovative inventory management techniques, and ...view middle of the document...
In today’s Japan is quite difficult for new companies to enter the market of retail convenience stores because it has been already saturated. Dominant convenience stores already exits and the streets of Japan are filled with a variety of convenient stores especially in Tokyo, serving an affluent and busy population of young professionals.
One of the strengths of this company is that they have been able to create a solid information system to discover timely trends in markets demands, and intelligent process to turn this collected data into valuable information for product replenishment. They also created a highly efficient shelf space allotted in the condensed Japan maximizing sales per square meter displaying the ultimate retail-business model. Adding to that Seven-Eleven Japan gave the opportunity to Japanese people to make shopping anytime, so it was an innovative way to attract busy customers.
Seven-Eleven Japan company level strategies can be describe as attempting to micro-match supply and demand using a system of rapid replenishment. They competitive strategy is to provide high-availability of a variety of reasonable quality products at sensible prices. Seven-Eleven Japan must attempt to be responsive and provide customers with what they need, when they need it, where they need it. They can improve this responsiveness with local capacity at each store and assemble food on demand. Inventory would be store as raw materials. Food could be put together on demand, in a way of a Subway franchise type store. A customer could place an order online and be greeted by the store clerk with a confirmation order conversation and in a very short time have their order. Having all inventories available at the stores at all times is another approach. Also they could tryout with rapid replenishment process, making sure these stores are set-up with a quick refill of supplies.
Seven-Eleven Japan should have employees accessing tablets computers link to headquarters as they walk the aisles. The computer touch screen can summon up details of individual products, sales data going back for weeks and even Japanese holidays and local events programmed that will mix marketing with culture. A clerk can quickly see a customer approaching the cash register, quickly key in a visual profile and match the profile to the customer purchases. That information helps both the store and its...