Emergent strategies for gas stations to survive in a carbon-neutral age

Abstract

The number of gas stations (GS) in Japan has halved in the last quarter-century, as price competition has made selling gasoline unprofitable. Further, the Japanese government has formulated a policy to end the sale of gasoline and diesel-powered vehicles by 2035. Under these circumstances, Yamahiro, a GS company, (A) according to non-oil services, divided its GSs into three groups, namely, car inspection/testing, car washing/coating, and car rental, and further increased the specialization of each station by focusing on the services it offers; (B) not reduced the number of employees at the station despite operating self-service GSs and introduced the vehicle identification system and vehicle information management system to improve the profitability of its non-oil services by linking these systems; (C) utilized the vehicle data to create synergies between the car-rental business and used car sales business; and (D) increased the number of GSs by taking over unprofitable stations from wholesale dealers of oil products and retraining their entire workforces. As a result, the company expanded its business in Tokyo area, presently earning 40% of its profits from non-oil services, and won the Japan Quality Award (JQA).

Keywords

• gas station
• emergent strategy
• carbon neutrality
• digital transformation
• japan quality award