Why did KDDI and Mitsubishi Corporation embark on joint management of Lawson? Is the ultimate purpose of the partnership to acquire “that EC company”?

This week again, Professor Akie Iriyama of Waseda University Business School will discuss issues based on management theory. I refer to his book “World Standard Management Theory”. However, this series can be easily read without this book.

It has been announced that KDDI will be entering the management of Lawson, a subsidiary of Mitsubishi Corporation. Why are major carriers turning their attention to convenience stores? After deciphering the intentions of each company behind this news, Professor Iriyama makes a bold prediction: “Perhaps the ultimate goal of KDDI and Mitsubishi Corporation is to acquire a certain company.” What exactly is that target?

[Click here to listen to the audio version](Playback time: 23 minutes 21 seconds)*Click to play audio

Why are telecommunications companies expanding into convenience stores?

Hello, this is Akio Iriyama.

On February 6th, news of a major capital and business alliance broke out.

Writer Nagayama

Writer Nagayama

KDDI has entered the management of Lawson, a subsidiary of Mitsubishi Corporation. From now on, Mitsubishi Corporation and KDDI will each own 50% of the stock and will jointly manage Lawson, but what is their goal? Will that aim be successful?

In fact, regarding this news, I’ve received several inquiries asking, “What’s going on here? Please explain,” and I’ve already talked about it on a certain TV show. Today, in addition to that, I would like to go into more detail and explain it, which is unique to Business Insider.

First of all, what kind of situation is this? Each of the three companies has their own agenda.

First of all, Lawson was previously a listed subsidiary of Mitsubishi Corporation, but its business performance is not so good right now. Of the three major convenience store companies, Seven-Eleven, FamilyMart, and Lawson, Seven was the overwhelming champion, with Lawson in second place.Recently, however, it has been surpassed by FamilyMart.

To begin with, not only Lawson, but all convenience stores are now at a turning point. Up until now, convenience stores have been able to increase sales by opening many stores, but the market is now saturated and there are no more places to open stores. From here on, the only option is to increase sales per store. Well, this is the same for Seven and Family Mart.That’s why I think Lawson is trying to become what KDDI calls “the convenience store of the future, leveraging digital technology.”

Mitsubishi Corporation and convenience stores are not a good match

Source: BusinessInsider


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