Seven-Eleven Japan Company: E-Commerce Website

This recommends the focus on benefits that can be obtained due to Seven-Eleven Japan Co. Ltd. partnership with the prominent Japanese companies for the creation of the biggest business-to-consumer (B2C) e-commerce Website. In this way, it is critical to develop a strategy to make the targeted market buy on-line regardless of its hesitancy for the future partners to be insured in the success of this cooperation.

Implementation will take place within 20 days of approval. Improved sales, profitability, productivity, and reduced costs will result from these actions.

Background

Seven-Eleven Japan is an organization that successfully operates since the previous century but suffered from global economic issues. Its chairman, Toshifumi Suzuki, is willing to ensure sustainable growth for the company. Being the creator of the Japanese convenience store concept, he developed numerous successful business strategies that allowed the organization to increase its revenue.

Toshifumi Suzuki believes that on-line shopping opportunities will be the most beneficial for Seven-Eleven Japan, as they will allow the company to increase income, improve performance, and reduce expenses. He has already invested in an on-line bookstore and found out that regardless the fact that the country reveals the slow growth of B2C e-commerce, it is possible to appeal to the customers and reach profitability. The future partners are likely to accept the possibility of cooperation if they know that possible challenges can be overcome.

Recommendation

The company is expecting an 180 billion yen increase in three years and a 240 billion yen increase in four years. Having an opportunity to use an existing delivery system, Seven-Eleven Japan can avoid additional expenses. It is expected that the company will take a 51% stake in the website. Even though the future change may face a range of challenges due to customers’ hesitation, a range of opportunities to overcome them exist (see Exhibition 1).

Thus, it is recommended that the company shares this information with the future partners and launches e-commerce with them in order to reach great advantage. In this way, Seven-Eleven Japan can obtain personal benefit, offer more opportunities to its clients, and ensure profits for its partners. Other organizations can utilize this approach as well. However, it is critical to remember that it is developed for Japan market and an extended company that operates successfully for a long time.

Basis for Recommendation

It will be beneficial for Seven-Eleven Japan to provide on-line shopping opportunities for its clients. A range of advantages will be obtained by all parties, including the partners and clients. Regardless of charges, the organization will be able to get payback and reach additional benefits with the course of time due to a range of expected advantages (see Exhibition 2). Its competitors will not be able to manage the same success because of the inability to cooperate with the same partners and Seven-Eleven Japan’s reputation.

Discussion

The company can launch B2C e-commerce Website and develop a brand new delivery system for it or abandon this idea and open retail shops. However, it is recommended that Seven-Eleven Japan launches B2C e-commerce Website and use already existing delivery system to improve sales, profitability, productivity, and reduce costs (see Exhibition 3).

Next Steps

In 20 days after the approval of the proposed project, it will be implemented. Then, cooperation with the future partners will be agreed, and contracts will be developed.

Exhibits

Exhibit 1

E-Commerce for Seven-Eleven Japan Challenges and Opportunities.

Challenges

Opportunities

The Internet connection charges are rather high
Government policies used to restrict e-commerce and started supporting its expansion only recently
In the framework of local culture, the population of the country is more focused on cash than on credit card payments that are required in e-commerce
Clients used to buy off-line, so this type of shopping appeals to the majority of citizens
People tend to be afraid to submit their credit card information

Unlimited shopping time and opportunity to make an order regardless of the location
The on-line interaction between consultants and clients. Assistance
Possibility to offer individually tailored products. Personalization
Wide search capabilities
High security
Shopping using store catalog
Possibility to rate products and give reviews for other clients to get more information about them
Opportunity to maintain shopping using smartphone

Exhibit 2

Advantages of B2C E-Commerce for Seven-Eleven Japan.

Advantage	Description
Reduced costs	No necessity to rent a place and hire a lot of new employees
Enhanced capability	It will be possible to serve more clients due to automation and necessity to interact on-line only with some clients. High transaction volume will be reached. All in all, sales acceleration is expected
Place and time	Clients do not have to visit shops if they want to make a purchase, as it can be made at home. It is possible to enter a Website and make an order 24/7
Focus on clients	Website provide an opportunity to get customer feedback easily so that the company can meet clients’ demands
Data collection	It is easier for professionals to collect and analyze data because a lot of processes are automatized

Exhibit 3

Options Grid.

	Option 1	Option 2	Option 3
Description of Option	Launch B2C e-commerce Website and use already existing delivery system	Launch B2C e-commerce Website and develop a new delivery system	Open new shops in the retail sector and ignore the possibility of launching B2C e-commerce Website because of existing challenges
Overall Assessment	Recommended because of the high chances to increase sales, profitability, productivity, and reduce costs	Not recommended because of the additional expenses connected with the development of a new delivery system	Not recommended because the further extension of the retail sector is not likely to lead to any significant changes
Strategic Fit (Core Competencies)	Focus on the ability to implement innovative technologies that are likely to make the company more competitive, streamline its operations, and ensure growth	Regardless of the ability to implement innovative technologies, the company will start operating with two delivery systems that will be rather expensive and can lead to errors	The company already has a lot of retail shops in Japan so that the number of its clients is not likely to increase greatly. Thus, new markets will not be reached, and no vital operational improvements will be faced
Financial Attractiveness	An 180 billion yen increase in three years, and a 240 billion yen increase in four years	Expected increase will be reduced because of additional expenses connected with distribution	Minimal financial advantages are expected while it will be rather costly to open a new retail shop
Noteworthy Risks	Possible competitor’s reaction and issues in a short-time run	Possible competitor’s reaction, issues in a short-time run, and delivery errors and expenses	No competitive reaction

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