Research On The Development Strategies Of Beijing Ito-Yokado Shopping Malls

With the increasingly fierce market competition, high operating costs, and the up-coming revolution of electricity providers, the traditional department store industry is facing unprecedented challenges. Ito-Yokado Commercial Co., Ltd. is the first joint venture chain commercial enterprises in China, which was established in October 1997 and invested by Ito-Yokado Japan and other Chinese enterprises. Ito-Yokado was the one of companies that was approved to establishment by Chinese Government. However, a global company with such a halo has ushered in a closed shop tide from the beginning of April 2014. It has to closed five stores in 2014; and surplus stores operating performance was also demonstrated negative trends in the same period. The reasons of the negative situation are complex including both external and internal elements. The Company has to adjust their operation method and path by enhancing advantages and weakening disadvantage through a revolution of operation mode, in order to win customers and gain the market share back.This article builds the research angle from the operation model and the theory of operation management to analyze the operation situations and problems of Ito-Yokado by using qualitative and quantitative analysis and comparative analysis. Additionally, the writer analyzes the external macro-environment and internal elements, like advantages, disadvantages, opportunities and challenges by the use of PEST, Michael Porter’s Five Forces Model and SWOT Model. Finally, the writer establishes the differentiation strategy for Ito-Yokado’s future development and makes several safeguards to guarantee the implementation of the strategy.