Discussion of rigidities and new approaches

Abstract

The previous chapters examined the business model of Japanese conve­nience stores developed in the past decades and modifications observable increasingly after the turn of the millennium. Although from an evolu­tionary point of view, convenience stores are relatively young partici­pants in the Japanese retail industry compared with traditional formats such as department stores and supermarkets, recent problems of high competition, saturated markets, more complex business environments and increased difficulties in meeting diverse customer demands reflect typical characteristics of the current stage of maturity. The fact that the three largest operators have a market share of over 70 per cent suggests a major shakeout, where many firms were unable to develop and sus­tain sufficient dynamic capabilities to meet the change challenge that became necessary for survival.