Toys R Us Japan Case Solution

Case Solution

Documents the American retailer's technique of entry to the Japanese toy market. Discusses a history of Toys R Us inside the US together with the great status for japan toy market, distribution, wholesaling, and selling systems. Wanting to enter the earth's second greatest toy market,  professionals range from late eighties to formulate techniques for opening large discount toy stores in Japan. The American company faces numerous difficulties due to Japanese store-size regulation, application techniques, together with a extended-standing multi-layered distribution system. Ongoing effort as well as the acceptance from the Japanese partner let the organization to arrange for your opening from the  outlet in 1991. Faced with inadequacies in direct distribution deals and land and labor costs, professionals of  Japan concern yourself with the very best success from the launch company.

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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?