Toys R Us Japan Case Solution

Case ID: 796077
Solution ID: 9838

Words: 1467

Price: $45

Case Solution

Gives an account of the American retailer's procedure of entering into the Japanese toy market. Talks about the historical backdrop of Toys "R" Us in the United States and in addition the historical backdrop of the Japanese toy market, circulation, wholesaling, and retailing frameworks. Enthusiastic about entering the world's second biggest toy business sector, Toys "R" Us managers and directors start in the late 1980s to define methods for opening huge markdown toy stores in Japan. The American organization confronts a progression of setbacks because of Japanese store-size regulation, application strategies, and a long-standing multilayered dissemination framework. Sustained struggles and efforts and bringing on board a Japanese partner allowed the organization to plan for the opening of a Toys "R" Us outlet in 1991. Confronted with an absence of direct distribution arrangements and high land and labor costs, executives of Toys "R" Us Japan stress over the definitive success of their new endeavor.

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Questions Covered

1. Was Japan an attractive market for Toys R Us? Do you think there were any cultural obstacles to product acceptance? Strong competitors?

2. What were the entry barriers into Japan? Any culturally based barriers, in terms of how to do business? 

3. How did Toys R Us manage to cross the entry barriers into Japan? What alternative modes of entry could have been tried? 

4. What were the problems in transferring Toys R Us competitive advantages to a foreign market?Why did Toys R Us internalize the firm specific advantages rather than license another retailer abroad?

5. Were the company executives in Japan too optimistic in their assessment of competitors in Japan? What should their future strategy be?

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