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7-ELEVEN JAPAN
CO.
PRESENTED BY: S/LT AAMIR,
S/LT ALI, S/LT ARSALAN,
S/LT KASHIF
1
OUTLINE
• Mission
• Introduction
• History & Profile
• Competitive strategies
• Store information and contents
• Inventory
• Information system
• Distribution system
2
MISSION OF 7-ELEVEN JAPAN
Our purpose and mission is to make life a little easier for our
customers by being where they need us, whenever they need us.
3
Introduction
• 7-Eleven is part of an international chain of convenience stores.
• 7-Eleven is the world's largest operator, franchisor, and licensor of convenience
stores with more than 50,000 outlets.
• 7-Eleven branded stores under parent company Seven & I Holdings Co. are
located in 16 countries with its largest markets being Japan (15,000), the United
States (8,200), Thailand (6,800), Canada, the Philippines, Hong Kong, Taiwan,
and Malaysia.
• 7-Eleven Japan runs all 7-Eleven franchises worldwide and is headquartered in
Tokyo, Japan.
4
HISTORY AND PROFILE
• Founded by Masatoshi Ito post 2nd World War.
• By 1960, the single store had grown into a $3 million company.
• In 1961, realized that superstores were the wave of the future.
• In 1972, approached Southland Corporation .
• In 1973, Southland agreed to a licensing agreement.
• In 1974, first 7-11 convenience store opened in Tokyo.
5
• The company was first listed on the Tokyo Stock Exchange in October 1979.
• In 1990, Southland Corporation entered into bankruptcy protection.
• In 1991, IYG holding acquired 70% of Southland’s common stock.
• Between 1985 and 1994, the number of stores increased from 2,299 to 5,523;
sales increased from 386 billion Yen to 1,282 billion Yen; Net income increased
from 9 billion Yen to 46 billion Yen.
• In 1994, Seven-Eleven Japan ranked first among Japanese retailers in terms of
ordinary profit.
• Same year, customer visits to Seven-Eleven outlets totaled 1.8 billion, which
translates to every person in Japan visiting a Seven-Eleven on average 15 times a
year!
6
• 2000February Establishment of e-commerce company, 7dream.com
• 2003August Total number of stores reached 10,000.
• 2005February 7-Eleven, Inc., became a subsidiary of Seven-Eleven Japan.
ATMs installed at Seven-Eleven stores reached 10,000.
• In 2012 their total sales were 3500 billion yens.
• As of June 2013 7-Eleven has 15,504 stores in Japan alone.(source
http://www.sej.co.jp/company/en/g_stores.html)
7
Total no of stores
http://www.sej.co.jp/company/en/s.growth.html
8
Total Sales
http://www.sej.co.jp/company/en/s.growth.html
9
What made them so successful????
10
Obviously Their SCM!!!!
11
12
7-Eleven Japan’s Competitive Strategies
• To provide high-availability of a variety of reasonable quality products at
reasonable price.
• Cluster of stores (50-60) in small geographical area supported by a
Distribution Centre (DC)
• Commitment to customers and friendly service. Greater familiarity with
customers .
• Outsourcing policy and ability to manage suppliers relationship.
• First mover advantage
13
Continued
• Customer checkout process . Clerk records the customer’s gender,
(estimated) age and purchased items. These Point of Sales (POS) data are
transmitted to database at the headquarters.
• Daily use of the data
• Headquarters aggregate the data by region, products and time and pass to
suppliers and stores by next morning. Store managers deduce trend
information.
• Preventing entry by competitors.
• Combination of Own and Franchisee Stores. gross profits shares (45% SEJ;
55% store)
14
Continued
• Area/Market Dominance Strategy and it’s advantages were:
• High Distribution Efficiency
• Brand Awareness
• System efficiency
• Franchisee Support Services
• Advertising effectiveness
• Entry barrier for competitors
15
Store information and contents
• Store size = 150m2, 3000 items.
• Average inventory at store of 3000 Stock Keeping Units (SKU), with max
capacity of 5000 SKUs.
• Products include:
• Food Items
• Beverages
• Magazines
• Soaps, Detergents etc.
• Game, Software
• Seasonal items
16
Store services
• In 1999, payment for Internet shopping.
• In 2001,7dream.com was launched.
• In 2009, ATMs had been installed in all stores in Japan.
• Photocopier
• Ticket Sales
• Payment of Bills
• Electricity
• Telephone
• Gas
• Insurance Premium
17
Continued
• Accepting Installments on behalf of credit companies.
• Meal Delivery service for aging population of Japan.
• Pick up location for parcel delivery.
18
Information System
• Graphical order terminal—manager Info. & order.
• Scanner terminal- receiving & inventory.
19
• POS register – real-time data on sales, customer, data analyzed overnight for company,
district, and store.
• Store computer: it was linked with GOT,POS,
Scanner terminal through ISDN with DC’s &
Headquarter. which helped in deducing trend of sales and
Customers.
20
• Data was relayed to Suppliers, Distribution Centres and the Headquarters
automatically.
• Increased both efficiency and responsiveness.
21
Sourcing
• Outsourced transportation.
• From DC to Stores to Transfleet Ltd.
• Risk of Fuel Price Fluctuation, Fleet Maintenance and Cost of Fleet staff was
transferred.
• The company increased profits and reduced risk.
22
7-Eleven’s Distribution System
• The major objective was to carefully track sales of items & offer short replenishment
cycle times.
• When a store placed an order , it was immediately transmitted to the supplier as well
as to the distribution center.
• Key to store delivery was what 7-eleven called combine delivery system.
• The distribution system enabled &-eleven to reduce no of vehicles required for daily
delivery service to each store , even though delivery frequency was high.
23
24
Queries ??????
25

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Seven eleven japan company

  • 1. 7-ELEVEN JAPAN CO. PRESENTED BY: S/LT AAMIR, S/LT ALI, S/LT ARSALAN, S/LT KASHIF 1
  • 2. OUTLINE • Mission • Introduction • History & Profile • Competitive strategies • Store information and contents • Inventory • Information system • Distribution system 2
  • 3. MISSION OF 7-ELEVEN JAPAN Our purpose and mission is to make life a little easier for our customers by being where they need us, whenever they need us. 3
  • 4. Introduction • 7-Eleven is part of an international chain of convenience stores. • 7-Eleven is the world's largest operator, franchisor, and licensor of convenience stores with more than 50,000 outlets. • 7-Eleven branded stores under parent company Seven & I Holdings Co. are located in 16 countries with its largest markets being Japan (15,000), the United States (8,200), Thailand (6,800), Canada, the Philippines, Hong Kong, Taiwan, and Malaysia. • 7-Eleven Japan runs all 7-Eleven franchises worldwide and is headquartered in Tokyo, Japan. 4
  • 5. HISTORY AND PROFILE • Founded by Masatoshi Ito post 2nd World War. • By 1960, the single store had grown into a $3 million company. • In 1961, realized that superstores were the wave of the future. • In 1972, approached Southland Corporation . • In 1973, Southland agreed to a licensing agreement. • In 1974, first 7-11 convenience store opened in Tokyo. 5
  • 6. • The company was first listed on the Tokyo Stock Exchange in October 1979. • In 1990, Southland Corporation entered into bankruptcy protection. • In 1991, IYG holding acquired 70% of Southland’s common stock. • Between 1985 and 1994, the number of stores increased from 2,299 to 5,523; sales increased from 386 billion Yen to 1,282 billion Yen; Net income increased from 9 billion Yen to 46 billion Yen. • In 1994, Seven-Eleven Japan ranked first among Japanese retailers in terms of ordinary profit. • Same year, customer visits to Seven-Eleven outlets totaled 1.8 billion, which translates to every person in Japan visiting a Seven-Eleven on average 15 times a year! 6
  • 7. • 2000February Establishment of e-commerce company, 7dream.com • 2003August Total number of stores reached 10,000. • 2005February 7-Eleven, Inc., became a subsidiary of Seven-Eleven Japan. ATMs installed at Seven-Eleven stores reached 10,000. • In 2012 their total sales were 3500 billion yens. • As of June 2013 7-Eleven has 15,504 stores in Japan alone.(source http://www.sej.co.jp/company/en/g_stores.html) 7
  • 8. Total no of stores http://www.sej.co.jp/company/en/s.growth.html 8
  • 10. What made them so successful???? 10
  • 12. 12
  • 13. 7-Eleven Japan’s Competitive Strategies • To provide high-availability of a variety of reasonable quality products at reasonable price. • Cluster of stores (50-60) in small geographical area supported by a Distribution Centre (DC) • Commitment to customers and friendly service. Greater familiarity with customers . • Outsourcing policy and ability to manage suppliers relationship. • First mover advantage 13
  • 14. Continued • Customer checkout process . Clerk records the customer’s gender, (estimated) age and purchased items. These Point of Sales (POS) data are transmitted to database at the headquarters. • Daily use of the data • Headquarters aggregate the data by region, products and time and pass to suppliers and stores by next morning. Store managers deduce trend information. • Preventing entry by competitors. • Combination of Own and Franchisee Stores. gross profits shares (45% SEJ; 55% store) 14
  • 15. Continued • Area/Market Dominance Strategy and it’s advantages were: • High Distribution Efficiency • Brand Awareness • System efficiency • Franchisee Support Services • Advertising effectiveness • Entry barrier for competitors 15
  • 16. Store information and contents • Store size = 150m2, 3000 items. • Average inventory at store of 3000 Stock Keeping Units (SKU), with max capacity of 5000 SKUs. • Products include: • Food Items • Beverages • Magazines • Soaps, Detergents etc. • Game, Software • Seasonal items 16
  • 17. Store services • In 1999, payment for Internet shopping. • In 2001,7dream.com was launched. • In 2009, ATMs had been installed in all stores in Japan. • Photocopier • Ticket Sales • Payment of Bills • Electricity • Telephone • Gas • Insurance Premium 17
  • 18. Continued • Accepting Installments on behalf of credit companies. • Meal Delivery service for aging population of Japan. • Pick up location for parcel delivery. 18
  • 19. Information System • Graphical order terminal—manager Info. & order. • Scanner terminal- receiving & inventory. 19
  • 20. • POS register – real-time data on sales, customer, data analyzed overnight for company, district, and store. • Store computer: it was linked with GOT,POS, Scanner terminal through ISDN with DC’s & Headquarter. which helped in deducing trend of sales and Customers. 20
  • 21. • Data was relayed to Suppliers, Distribution Centres and the Headquarters automatically. • Increased both efficiency and responsiveness. 21
  • 22. Sourcing • Outsourced transportation. • From DC to Stores to Transfleet Ltd. • Risk of Fuel Price Fluctuation, Fleet Maintenance and Cost of Fleet staff was transferred. • The company increased profits and reduced risk. 22
  • 23. 7-Eleven’s Distribution System • The major objective was to carefully track sales of items & offer short replenishment cycle times. • When a store placed an order , it was immediately transmitted to the supplier as well as to the distribution center. • Key to store delivery was what 7-eleven called combine delivery system. • The distribution system enabled &-eleven to reduce no of vehicles required for daily delivery service to each store , even though delivery frequency was high. 23
  • 24. 24