7-ELEVEN Japan Co., Ltd.:

Nagayama & Weill 2004 WP__7-ELEVEN Japan Co. Reinventing the Retail Business Model

January

CISR WP No. 338 and MIT Sloan WP No. 4485

Title: Seven Eleven Japan: Reinventing the Retail Business Model

Author: Kei Nagayama and Peter Weill

Date: January 2004

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.

Key words: Retail, business model, IT and information management, IT enabled strategy, outsourcing.

22 Pages