7-Eleven Stores in Japan

Group 5:
Akash Naresh Agrawal
Ganesh Kumar
Kapil Chambyal
Madhav Kishore
Rahil Panjiyar
Ruchika Rai
Vinitha E

7-Eleven Stores & Value Net Integrator

7-Eleven stores integrated internet services into their supply-chain model to increase sales

Visitors can place order online and also pay through their websites

Complete transaction information is transmitted to 7-Eleven stores

In the end Shoppers can collect items from the nearest store

The information was then synthesized and distributed which to reduce errors, reduce costs and enhance
customer experience

Scalability Economics

With the business model which allows customers to serve themselves the 7-eleven Japanese distribution
system exhibits economics of scalability

Website created is to be used by as many customers as possible, so no extra cost will incur if more
customers are needed which fulfills the requirement of scalability needs

Impact of Culture on service system design

In Japan, the salaried workers and students usually spent long hours in trains to
commute to office.

With the introduction of wireless mobiles, people are replacing the traditional
newspapers with phones that can display news, has access to the internet.

The 7-eleven used this cultural behaviour in their favour by linking the convenience
store network with cell phones and internet.

The customers started using their mobile phones to order the product using the
direct code while commuting in a train, and picking the item on the way.

Can USA use this model?

USA uses largely car rather than train for travel

This shows less people will be free to use smartphones while travelling as many are
driving

It seems culture plays a huge role is shaping business models

Thank You!