Always Putting the
Customer First

Value Chain for Building a Competitive Advantage

In all of its business operations, from product planning and development to procurement, production, logistics, sales and distribution, ITO EN creates value not only for itself but also in terms of environmental and social aspects, forming a circular chain of value. We are also enhancing our corporate governance, as the foundation for this value chain.

By working in conjunction with stakeholders, the value chain generates further chains of value, and acts as the source of ITO EN’s competitive advantage towards achieving sustainable growth.

* In the following diagrams , environmental value , social value and governance-related aspects at each stage of the value chain are represented using the letters , and .

  • Environment
  • Social
  • Governance
Value Chain for Building a Competitive Advantage
 image

Product Planning and Development

Product Planning and Development image

Sources of competitive advantage

Product Development Capabilities (FOSHU, etc.)
Product differentiation through high added-value products
Voice System (internal proposal system)
A Wide Range of Products
Expansion of the beverage market and flexible response to consumer needs
Patent and Trademark Strategies
Differentiation from other firms’ products, improved brand power (measures against damage to brand) and ensured competitiveness

Value created

  • Provide health value to a wide range of customers
  • Provide beverages that cater to diverse needs
Value for ITO EN

Market creation, innovation

Procurement

Procurement image

Sources of competitive advantage

High Capability to P rocure Crude Tea
Stable, high-quality raw ingredient procurement capabilities with the advantage of large-scale operations
The Tea-Producing Region Development Project
EIncreased quality of crude tea
Stable procurement of raw ingredients

Value created

  • Sustainable agriculture and creation of jobs
  • Environmental conservational agriculture
Value for ITO EN

Procurement of distinctive raw materials achieved through collaboration and at low cost

Sales and Distribution

Sales and Distribution image

Sources of competitive advantage

Route Sales & Operation of R etail Stores
Securing new customers and strengthening relationships with existing customers
Community-based sales
The Tea Taster System
Revitalization of the green tea market, enhanced sales and distribution capabilities through ITO EN tea professionals (qualified ITO EN Tea Taster)
Oi Ocha New Haiku Contest “Making Japan Beautiful Through Tea” Project
Increase sales and market share through added value

Value created

  • Provide tea culture knowledge to customers
  • Spread and pass on Japanese traditions and tea culture, and utilization in education
  • Promote environmental conservation activities
  • Promote environmentallyfriendly lifestyles
Value for ITO EN

Market creation, economic value creation

Production and Logistics

Production and Logistics image

Sources of competitive advantage

Fabless Method
Reduces capital investment costs
Enables adjustment of production volumes to match demand
NS System
Enables product differentiation and cost reduction through high quality
Used Tea Leaves R ecycling System
Achieves cost reductions through conservation of resources and recycling
Enables effective utilization of the effects of tea
Quality Control System
Increases brand value
Block Production and Logistics S ystems
Reduces logistics costs and enables speedy supply of products
Enables construction of an eco-conscious logistics network

Value created

  • Stability of management for production outsourcing partners
  • Safety and peace of mind for consumers
  • Sustainable use of resources
Value for ITO EN

Establishment of safe and secure production systems achieved at low cost

Foundation that underpins
creation of value

Corporate governance, risk management, compliance, supply chain management,
respect for human rights, human resources management, finance management

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