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7- ELEVEN JAPAN
Case Study
1- What factors accounted for 7-Eleven's initial success in Japan?
The most important factors 7-eleven had was the alliance they had with Ito-Yokado, since the company became Japanese owned it started to have success because of the detailed knowledge of the legal, political, and social environment of this country. Ito-Yokado had the experience of working in Japan as a large Japanese supermarket chain operator. The joint venture was highly successful, with 7-Eleven becoming the larges convenience store operator in Japan. Another factor one must site is that 7-Eleven gave the opportunity to Japanese to make shopping anytime, so it was an innovative way to attract Japanese people. The function of distribution point was another factor to have success because Japan's population is so big that it is hard to reach everybody at the same time, so customers who wanted goods from an internet marketer could order the goods over the internet and the internet marketer would ship the goods to a 7-Eleven store near to the customer.
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- What factors accounted for 7-Eleven's continuing success in Japan?
A factor that helped to continue the success in Japan when they started to grow and sell more products to the market for example when they entered into agreement with Softbank Corporation, Tohan book wholesalers, Yahoo Japan, and others to create a venture to sell books and video using a web site on Yahoo Japan. The several partnerships helped 7-eleven to continue its success for example the Sony partnership, NEC, Mitsui, trading company, and Japan Travel Bureau, to distribute a wide range of products, to provide music, and photos online, and to handle book and ticket sales. That penetration in the Japanese market drove and will continue driving 7-Eleven to be more successful.
- Is 7-Eleven Japan wise extending its delivery and payment services to Taiwan?
Yes, Taiwan appear to offer excellent potential for a profitable extension of 7-eleven's delivery and payment service for items ordered on the internet. Taiwan has an even higher population density than Japan, it means that the population will drive 7-eleven to have success in the market place with its delivery and payment services.
4- If its extension of service to Taiwan is a success, should it extend such services to the United States, Thailand or other countries? What factors should be taking into account in making such a decision.
One must think that the services offered by 7-eleven in Japan and Taiwan would not work in the United States, because "American" people trust more on the payments of credit cards and buying on the internet. There would not be success also because of the many delivery companies the United States have. Thailand or other countries, there would be a possibility of having success offering these same services, but the "x" country needs to be analyzed carefully if 7-eleven could have success, because some countries are different doing business. Culture is one of the most important factor that could affect the success on any country because there are many different ways people do shopping, trust on services (like shopping on the internet, and the delivery of products). Another factor that should be taken to account in making the decision of entering to any market would be legal, political and social environment, there are risks those environments bring because there are some countries where it is difficult for a foreign company to be acceptable to do business.
5- Is the offering of more services in Japan, including banking, provision of in- store terminals for use by customers, etc, likely to cause problems for part-time workers in the franchises?
One must think that there would not cause problems because there is a market for everything. The part-time workers would have to continue working where they are and the offering of more services will bring more work opportunities for people to work as well for there would not cause any problems for the part time workers and for the business owners neither.
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