Bennett S. LeBow College of Business
What Retailers in Developed Markets Can Learn from Three Japanese Convenience Chains Japanese convenience stores have been at the forefront of innovation, using information technology (IT) in revolutionary ways. There are two key ways in which they are more competitive than their counterparts in other parts of the world. First, they form IT based alliances, what we term as “e-retsu�, to combine resources of two or more firms. Second, these stores show how to achieve economics of scope by utilizing their excellent IT infrastructure in creative ways. These two strategic initiatives are important since Japanese convenience store market is highly saturated, and stores can only increase profitability or market share from innovation and optimization. The study analyzes the evolution of the three largest Japanese convenience store chains to better understand their e-retsu strategy and their strategic initiatives that achieve economics of scope. This paper makes an important contribution to our understanding of strategic options that might be used in developed markets where traditional growth is no longer an option.
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Paul de Vassal LEBOW COB Economics
Dr . M azha r Islam Faculty Mentor Management
Poster Session B