Case STUDY: Yedo department stores
Terms of reference
The TWCB was asked to conduct a report on Yedo’s recurrent problems. This report has been requested by Kazuo Yamashiro, the chief executive of Yedo.
This study is aimed at understanding why the situation of the company is getting worse and worse since last year.
So, Yedo’s company has asked us to outline some advice and recommendation to make the situation better.
In order to have a realistic vision of the problem we have a fact file, which describe the company (Date, Staff, Opening hours, location, core customers, discount policy, Décor…)
According to the TWCB market report. The two mains problems are the competition and the different trends that appear currently.
Firstly, competition is one of the most important problems. Indeed, the convenience stores appeal to all groups including housewives. They Offer a much wider range of good and services than they used to and respond quickly to demand and the other stores are often operate round the clock, whereas in Yedo’s Company core customers are the Well off, the brand conscious and 80% are female.
Discount Stores: along with the fact file, Discount policies are only available during regular January and July sales. Moreover, prices are in the these stores 20-30% below manufactures recommended level, also stores which price all product at Ұ100 have become popular in Japan.
Speciality stores and foreign retails have been installed, in fact, stores as Muji and Fast retailers sells good quality, ‘no brand’ product are low prices, backed up by sharp advertising. Fast retailers have opened 430 stores in Japan and plan another 80 to 100 each year. Muji has 251 stores in Japan and appeals mostly to young shoppers. And some following deregulation in the retail industry like Carrefour from France, and the American Chain Wal-Mart, Plan to open in Tokyo.
Secondly, Trends are also important to maintain profit. As the...