Source of Competitive Advantage Essay

One of the grounds of the success of 7-Eleven Japan or SEJ comes from the consumer-focused orientation based on Information Systems usage. Its complete apprehension and control of its market and operations based on IT support contribute to its sustainable competitory advantage. Even though SEJ respects IS as merely a tool, it is known for proactive investing in IT and outsourcing of its critical system. SEJ ‘s scheme is outsourcing most of IS direction in response to the velocity of the market, this scheme allows SEJ to concentrate on developing a vision that works with the concern scheme. Regularly, SEJ explores opportunities to obtain first mover advantage by presenting state-of-the-art engineerings, for case, point-of-sales system and Integrated Service Digital Network ( ISDN ) in which allowed 30 times faster velocities and enabled SEJ HQ to shorten analysis procedure of day-to-day POS informations point by point. This operational planning and control system expedites inbound and outbound logistics and the gross revenues forecast relies on POS informations to uncover alterations in consumer penchant. These inventions improve refilling procedure and maintain handiness of merchandises which in bend sustain the grade of client trueness taking to the competitory advantage.

In the US, 7-Eleven was the first major convenience shop concatenation in the US to develop a proprietary Retail Information System ( RIS ) characteristic POS, point degree gross revenues analysis, automated back office maps such as gross revenues and hard currency coverage, paysheet, gasolene pricing and stock list control, which are connected straight to the company accounting system and incorporate gasolene – ‘pay-at-the-pump ‘ functionality. The system builds efficiencies towards telling, distribution and selling procedures. Similar to its scheme in Japan, 7-Eleven outsource bulk of RIS to third party suppliers. RIS execution provides seasonably, accurate gross revenues information on an individual footing in which facilitates stock list direction that is known to be the cardinal success factor in C-store concern where stock list turnover is fast and replenishment procedure has to be able to catch up with the gait. Consequently, they are attributable to the beginning of sustainable competitory advantage of its operation in the US. Not to advert the debut of incorporate credit-card mandate and gasolene gross revenues into POS registry that yields more American client base as they are mono-chronic civilization who prefer one-stop shopping.

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Mentions

  • Briggs, W. & A ; Shore, B. 2007, Competitive Analysis of Enterprise Integration Strategies, Industrial Management & A ; Data Systems, vol.107, no.7, pp.925-935.
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  • Gottfredson, M. Puryear, R. & A ; Phillips, S. 2005, Capability Sourcing at 7-Eleven, viewed 29 April 2010,. Nagayama, K. & A ; Weill, P. 2004, ‘7-Eleven Japan Co.Ltd. : Reinventing the Retail Business Model ‘ , CISR WP no. 338, pp.1-20.
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