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Seven-Eleven Japan: Reinventing the Retail Business Model

Title Author(s) Type Topic(s) Comments Date
Seven-Eleven Japan: Reinventing the Retail Business ModelNagayama, Kei
Weill, Peter
Working PaperBusiness Models
IT-based Business Transformation
Abstract: This case study describes how Seven-Eleven Japan (SEJ) has successfully established an innovative business model that is changing the retail industry in Japan. The case describes the information-based strategies that have helped SEJ become a top performing retailer in Japan, selling high quality products through an industry-wide supply chain network. With its strong capability to analyze customer requirements, SEJ pursues an integrated strategy, supported by innovative use of information and IT, to control the marketing, merchandising and manufacturing of original products. The case also describes SEJ's development of an integrated retailing information strategy and associated systems. The company's policy of outsourcing most IT capabilities to partners and pursuing advanced IT initiatives has provided SEJ with substantial advantages over competitors. Strategic IT, human and information assets such as store councilors, item-by-item real-time control, industry-wide IT network, and a sophisticated analysis system have contributed to SEJ's success. The case addresses the challenges of remaining innovative while sustaining current core competencies.

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