7 Eleven Japan

7-Eleven Japan Co., Ltd

Izzat

Contents

Ñ"Ь History of 7-Eleven.

Ñ"Ь Ito-Yokado acquisition of 7-Eleven Japan.

Ñ"Ь Japan Retail business market.

Ñ"Ь 7-Eleven Japan Performance.

Ñ"Ь 7-Eleven Japan Key Success Factors.

Ñ"Ь Franchise System.

Ñ"Ь Products development and Improvement.

Ñ"Ь Joint Venture and business Alliances.

Ñ"Ь Location strategy for market penetration.

Ñ"Ь Product-Mix and classification.

Ñ"Ь Inventory Control.

Ñ"Ь Excessive investment in information System.

Ñ"Ь Conclusion.

History of 7-Eleven

Ñ"Ь In 1927, Shouthland Corporation (Now 7-Eleven) was founded in Dallas Texas.

Ñ"Ь In 1946 the 7-Eleven name was originated representing the working hours.

Ñ"Ь In1986, there were four operating groups:

Ñ"Ь Stores Group.

Ñ"Ь Dairies Group.

Ñ"Ь Special Operations Group.

Ñ"Ь Gasoline Supply Division.

Ñ"Ь 7-Eleven owned and franchised Approx:

Ñ"Ь 5,600 stores in the USA.

Ñ"Ь 12,500 stores around world.

Ito-Yokado acquisition of 7-Eleven Japan.

Ñ"Ь Low oil prices in early 1986 and inventory methods combined with other factors effected badly the Southland Corporation.

Ñ"Ь Since then the company was under takeover attempts by investors.

Ñ"Ь On March 1991, Ito-Yokado and 7-Eleven Japan purchased 71% of Southland Stock.

Japan Retail Business Market

Ñ"Ь Japan Government Regulation resulted in an increase number of superstores and discount stores.

Ñ"Ь Small and Mid-Size stores are being converted into convenience stores.

Ñ"Ь Although the number of superstores increased, consumers still purchase 55% of their daily needs from nearby convenience stores.

Ñ"Ь The competition is high, especially with low profit margin and possible change in the retail business.

7-Eleven Japan Performance.

Ñ"Ь In 1999: 7-Eleven Japan achieve growth in revenue from operation and net income for the 25th consecutive year.

Ñ"Ь Dividends per share increased for the 19th consecutive year.

Ñ"Ь Sales increased by 6.2 percent.

Ñ"Ь On existing stores sales increased by 0.7% on yearly basis.

Franchise System

Ñ"Ь ÐŽ§Mutual ProsperityЎЁ Concept.

Ñ"Ь Employment of gross profit sharing method for allocating income.

Ñ"Ь Provide assistance in areas like accounting, advertisement, administration and 80% of utilities cost.

Ñ"Ь Resulted in increased of the franchised stores to reach 98% by 1990.

Products Development and Improvement

Ñ"Ь 7-Eleven conducted researches and based on the trends of consumer behavior they develop or improve products and services.

Joint Venture and business Alliances

Ñ"Ь For continuous business growth.

Ñ"Ь All