7-ELEVEN IN THE U.S. AND JAPAN

Objective:

Distribution system that works for the U.S. may not necessarily work in different countries for various reasons:

  • Infrastructure is different. The ports in the U.S. are designed with high technology and efficiency to unload the goods and clear the customs process.
  • Infrastructure of wide paved roads make transportation on big rigs possible, making deliveries much quicker with big loads.
  • Supply Chain system is developed. Wholesalers, Agents, and Retailers are abundant and established.
  • Retailing in the U.S. is very advanced. The shopping malls and neighborhood shopping centers are abundant and available through the U.S. These retail practice of collective businesses make distribution of goods to retailers much more efficient. Likewise, the collective businesses produce synergy of drawing consumers to targeted areas efficiently instead of consumers going to scattered areas inefficiently.

The objective of this assignment is to evaluate the differences in distribution system:
(1) distribution of goods to retailers; (2) restocking of goods; (3) location of retailers.

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You will be comparing 7-Eleven in the U.S. and in Japan. Convenient stores are an epitome of distribution since the limited floor space make each square inch of shelf space a high real estate, and the products need to be restocked frequently.

7-Eleven started in the U.S. and sells franchise rights to many countries, including Japan.Japan 7-Eleven best exemplifies how a convenient store should enter a market, and how convenient stores should be run.Just-in-time inventory management and distribution system were born in Japan and many countries and major corporations (Wal-Mart included) follow the model created by 7-Eleven Japan.When 7-Eleven, Inc. in the U.S. was on brink of bankruptcy, 7-Eleven Japan, legally a separate entity, bought equity into 7-Eleven U.S. so the latter can survive.

For submission and presentation in class, research the following questions. College level research and critical thinking responses are expected. MLA citation required.

Individual Work

  • Research 7-Eleven Inc. in the U.S.
    • How does it decide on the franchise location?
    • Who does each store serve?
      • What is the geographic area it targets?
      • What population does it target?
    • How does it decide on the product line up?
    • What is their business practice on restocking the shelves?
      • How often do they restock?
      • Are the shelf spaces always stocked with the same products, or are the shelf spaces used for different purposes at different times of the day?
  • Now research 7-Eleven Japan.You will find its practices quite different from 7-Eleven U.S.
    • Which city did 7-Eleven Japan first enter?
    • What was the business decision as to why 7-Eleven was opened as a cluster in that city instead of opening in multiple cities?
    • Who does each store serve?
      • What is the geographic area it targets?
      • What population does it targets?
    • How does it decide on the product line up?
      • What products do they carry?
      • What consumer needs does 7-Eleven Japan meet?
        (hint: research “Large Store Law or Daipempoho” that helped
        7-Eleven Japan create a certain niche)
    • What is their business practice on restocking the shelves?
      • How often do they restock?
        (hint: research Just-in-Time Inventory System)
      • Are the shelf spaces always stocked with the same products, or are the shelf spaces used for different purposes atdifferent time of the day?
        (hint: the answer is yes, so research how the products on the shelf change for different targeted consumers throughout the day)

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