*Analysis of Seven-Eleven Japan Co.*, Ltd.
Industry Competitive Trends
Barriers to Entry
It is considered that for new companies to enter to convenience-store market is quite difficult because it has been already oversaturated market. Dominants convenience-stores such as Seven-Eleven, Lawson, or am/pm exist already and also the streets in Japan especially in Tokyo are filled with a variety of convenience-stores.
*Threat* to Substitutes
Bargaining Power of Suppliers
Bargaining Power of Buyers
Value Chain Analysis
As I have already stated, processed goods do not include outbound logistics whereas the activities of the original goods involve carrying them in Seven-Eleven from the factories or carrying them immediately in customers’ house.
Marketing and sales are the exactly indispensable and prominent activities for both goods. Because the main activity of convenience-stores industry like Seven-Eleven is to provide processed goods or to offer the original goods and services at the store, for the former ones sales is important while for latter ones marketing is imperative in order to search customers’ needs which change on a daily basis and provide them. In addition, the importance of marketing is because of the intense of convenience-stores industry. Therefore, each convenience-store continuously needs critical marketing activities for obtaining competitive advantage. The activities also include thinking of the way of display which is easy to see, making the good display shelves, researching customers’ needs for creating the better original goods, and changing prices temporarily.
Support activities are consolidated. In particular, the information system is remarkable. Seven-Eleven believes that customers’ needs are influenced by weather, temperature, community events, campaign, and period of time. Seven-Eleven focuses on single item control to adapt to the changing needs. It makes assumption...