Shimamura’s strategy to avoid competition: developing a low-cost operating system and evolutionary manuals

The purpose of this paper is to clarify how a follower company sets its survival strategy and creates its own business model to implement the strategy.

The paper examines the case of Shimamura from the viewpoint of its strategy, business model, business processes, managerial resources and value proposition.

Shimamura’s strategy is to avoid competition by creating a high entry barrier in its main market of local city areas. Shimamura dominates the market by opening its stores intensively in one area and eliminates its competitors to sell its products at a lower price. Shimamura continuously improves its low-cost operating system and develops comprehensive and evolutionary manuals to implement the strategy. Moreover, Shimamura adopts a flexible approach to changing its value proposition by combining its original value with new values.

The case study of Shimamura suggests that the survival of a follower company depends on building a strong business model that implements a clear and simple strategy.