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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 first mover 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 mobi|ity.
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 5 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 5 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. Wlthout effluent transportation. Seven-Eleven would tail 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 decrde which stores need Which goods. Goods are
loaded into another truck and deliveries are made to multiple smaII-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 lluid 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 termmals that accurate record the reception of inventory so all
goods are accounted fort
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 tum. brings us back to the
goal of effrctency and responsnveness. Through efiectlve flow 0! information. SevenAEieven contlnues
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': were able to track information and customer information as emciently
as Seven-Eleven, this allowed them to propel into a high level of first mover advantage over the
competition.
The Competitive strategy of Seven Eleven Japan is to provide High-availability of a variety of

reasonable products at reasonable prices.
The convenience store supply chain can be responsive if they focus on what the customer
wants. 7-eleven knows who is buying which product and at what time, it knows it because the
system is really efficient. For each customer the cashier pushes a button with the approximate
age, and the cash register the time and the kind of product that the client just bought. Now the
system knows who, where and what is sold at any time of the day, the supply chain can be really
responsive and offer the good where it is needed. The first online network was established in
1979, so it proves 7-eleven Japan was in front of all others about technologies and supply chain
management. Of course they take some risks doing this, because the population can be bored
or move. 7-eleven has to be careful about the needs every day, and has to react really quickly to
all kind of problems they have to face up

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What is Seven-Eleven Japan’s Competitive Strategy?

What is Seven-Eleven Japan’s Supply Chain Strategy?

What is Seven-Eleven Japan’s Supply Chain Drivers?

The Competitive strategy of Seven Eleven Japan is to provide High-availability of a variety of

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