8138 Words33 Pages
Sloan School of Management

Massachusetts Institute of Technology
Cambridge Massachusetts

7-ELEVEN Japan Co., Ltd.: Reinventing the Retail Business Model Kei Nagayama and Peter Weill
January 2004 CISR WP No. 338 and MIT Sloan WP No. 4485-04  2004 Massachusetts Institute of Technology. All rights reserved. Research Article: a completed research article drawing on one or more CISR research projects that presents management frameworks, findings and recommendations. Research Summary: a summary of a research project with preliminary findings. Research Briefings: a collection of short executive summaries of key findings from research projects. Case Study: an in-depth description of a firm’s
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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

Massachusetts Institute of Technology Sloan School of Management Center for Information Systems Research

Reinventing the Retail Business Model
Toshifumi Suzuki, CEO of Seven-Eleven Japan (SEJ), the world’s largest convenience store (CVS) chain, describes Seven-Eleven stores as:1 “Stores where you can find a solution for any of your daily
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