...Case study Toys “R” Us JAPAN Case study Toys “R” Us JAPAN TABLE OF CONTENTS Introduction 3. Japan Background and facts: 4. Background: 4 Facts: 5 Toys “R” Us Background 7. The Beginning: 7 Market Expansion 8 More ways to shop Toys “R” Us 8 Evolving business 9 Toys “R” Us in Japan 9 Case analysis: 10 Attractive factors of Japan toy market: 10 Barriers to Entry: 10 Success Factors for Toy's "R" Us-Japan 11 TRU Strategy 13 Our opinion: 14 Recommendations: 15 Conclusion: 16 References:: 16 Introduction: Toys R Us is the large distributor in the US and it is one of the more successful foreign retailers in Japan after overcome hard barriers. This successful is a result of right decision-making and strategy in overseas expansion by global retailer’s and gradual changes after entry into foreign markets. Also the strategy in respect of standardization adaption before and after entry has great effect in this successful. Coming lines, shows some factors that attract TRU to join venture in Japan. Then, we will discuss group of barriers that TRU had overcome, and how it’s overcome these barriers. In the end, we will evaluate Toys “R” Us in Japan market. Japan Background and facts: Background: Government: Parliamentary with constitutional monarchy Prime Minister: Shinzō Abe (elected Dec 2012) Capital: Tokyo Population: 127,368,088 Population Growth Rate: -0.077% (2012 est.), World Rank: 198th Birth Rate: 8.39 births/1,000 population...
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...Toy’s “R” Us Goes To Japan Section I: Relevant Facts Toys “R” Us first told the public about their decision to enter the Japanese toy market in 1989. A lot of critics worried that Toys “R” Us would not be successful in this new and foreign market. They raised several issues that they believed proved the Japanese market was not ready for the marketing and retailing strategy that Toys “R” Us offered. They stated that the Japanese culture and beliefs were too different from that of the United States and Europe for Toys “R” Us to be successful. Toys “R” Us incorporates a “category killer” strategy (Johansson 181). In this marketing strategy they use mass advertising in order to make brand recognition, which in turn helps consumers remember and want to shop at their store. They also discount some of the popular items at certain times which give the consumer the impression that everything at their store is inexpensive or discounted. Some critics said that this strategy would clash with the Japanese consumers, since Toys “R” Us competes on price and the Japanese culture links quality with price. Another concern was that Toys “R” Us Japan would not be able to get ample permission and space to build their large toy stores. Toys “R” Us has a policy that none of their stores can be less than 3,000 square feet. This is a problem when entering the Japanese market because they have laws against big stores and land is so expensive. Also some Japanese toy manufacturers...
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...Toys “R” Us Japan Answer1: Is Japan a good market for Toys “R” Us? CAGE Framework Cultural: * Lavish spending on children’s toys and clothes to compensate for constant pressure to excel in school * Greater preference to personal attention and guaranteed repair rather than low prices * But the younger generation owing to a greater international exposure realized that they were paying greater prices for many consumer goods compared to global standard * Cultural shift from taking over parents small shops to experimenting with bolder ventures * Principle of loyalty to manufacturers was strong in wholesaling and retailing Figure1: with the falling birth rate and fewer mouths to feed, the Japanese families are shifting from spending on food to recreation Geographic: * Japan comes as a natural progression after expansion in Singapore and Hong Kong because of cultural similarities and Japan also being a developed economy * Distance is an irrelevant factor considering that there is no exports or procurement of raw materials from other locations Economic: * Figure2 :Geographic Progression The 2nd largest toy market , Japan’s retail sales grew by 94% during 1980’s and GDP is growing at an annual rate of 7% * Falling birth rate allowed parents to focus spending on fewer children * Undercutting and first mover advantage can help them gain greater sales and a competitive advantage Administrative: By sheer numbers the country’s...
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...Case: Toys R Us Japan 1. Key features of the Japanese distribution system The distribution channel in Japan has a high number of intermediaries when compared to the United States. Nintendo, for example, uses a network of 70 affiliated distributors to distribute its products. It is based on long-term personal relationships. This system developed because in Japan “the merchants were restricted by law to their local patch, and retailers were encouraged to mop up labor from the land”. An additional reason is the preference for fresh food and small quantities due to small kitchens and little storage space. Even until today, the small mom and pop shops are higher valued by society than the mass discount retailers. Profit is not the highest priority of a shop owner but rather personal loyalty to his or her distribution keiretsu. 2. Japan as a market for Toys “R” Us Given the differences of doing business in Japan from the United States and the specific business strategy that Toys “R” Us uses in all of its worldwide markets, I would not consider Japan a good market. The company’s strategy and objectives do not agree with the values of Japan’s society. First of all, Toys “R” Us is a foreign company and therefore, does not have any long-standing personal relationship with Japanese businesses. Secondly, it is able to sell toys at a discounted price because it buys these in bulk. Due to the high rents in Japan, it might not be able to have a large selling space as it is available...
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...Many of us have shopped at Toys “R” Us whether we were just kids looking for toys or adults shopping for gifts. Toys “R” Us Inc. is the world’s leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands. Toys "R" Us has in excess of 1500 superstores in the United States and Worldwide. It also owns the baby brand, Babies R Us that adds another 200 or more stores. Toys “R” Us is actually the second largest retailer in the United States making them a high revenue company touching approximately $13.646 billion dollars. They also help improve the world’s economy by employing 70,000 people across the globe. Toys “R” Us may have many strengths but every company has a few weaknesses so that they can improve and become better. These days, Toys “R” Us has no single and sustainable competitive advantage, other than brand. In the US, its traditional stronghold, the company has lost its number one position, as toy retailer to Wal-Mart. Being large may not be enough for them, when customers can just go to another large retailer and buy the same or similar items, for a better deal. Also with Toys “R” Us, sales depend upon the season and the product range is not that much attractive for the seasons other than Christmas. There are opportunities for joint ventures and strategic alliances. Toys "R" Us works closely with Amazon.com and its baby products category. This not only plays to the strengths of both companies, but also provides...
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...Toys “R” Us Japan (Case No. 3) I. Problem Statement: Eager to enter the world´s second largest toy market, Toys “R” Us executives begin in the late 1980s to formulate strategies for opening large discount toy stores in Japan. However, the American company faced setbacks due to Japanese store-size regulation, application procedures, and a long-standing multi-layered distribution system. Continued effort and the acceptance of a Japanese partner enabled the company to prepare for the opening of a Toys “R” Us outlet in 1991. Faced with a lack of direct distribution deals and high land and labor costs, executives of Toys “R” Us Japan worried about the ultimate success of their new venture. Therefore, Toys “R” Us management must decide if entering the Japanese market is worth the effort it will undoubtedly entail. And if they decide to enter the market, they need to consider how to structure their entity; whether to modify their retail format to fit the Japanese market; and how to handle the political outcry that will inevitably accompany their investment. II. Alternatives: a. Status Quo - Continue to work with Mr. Fujita and McDonalds Japan to enter the Japan market b. Abandon the alliance with Mr. Fujita and McDonald's and work directly with the toy manufacturers to build the Toys “R” Us store and retail network c. Change strategy to have many "small shops" in Japan rather than the "big box" category killer that Toys “R” Us is known for in the US III. Analysis: a. Status...
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...– Toys R Us’ retailing format has been successful in the U.S, is there any reason why this selling format wouldn’t work as well in Japan as it does in the U.S? Toys R Us has gained its success in the United States by selling goods at a low price. They are able to this by buying large quantities of products directly from its manufactures which allows them to sell their merchandise at 10-20% cheaper than small retail stores. Toys R Us also does year round campaigning to encourage people to buy toys all year, instead of just for Christmas. This strategy would not work as well in Japan. Japan has a very different culture than the United States. Japan is known for their many “mom and pop” shops which employee only one to two people. In the 1980’s these small retail stores accounted for 75% of retail spending. These small shops have very close relationships with their manufactures, and they help each other stay in business. The small stores of Japan are a reflection of the Japanese way of life. The homes there are small and the Japanese would rather buy in small quantities more often rather than buy in bulk less frequently. They appreciate the personal customer service from the small shops and do not mind paying extra for their items. Toys R Us would have a very hard time becoming successful in Japan. Japan is a small country and there is not a lot of room to build huge Toys R Us stores. They would have a hard time buying products from manufactures as the manufactures have loyalty...
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...Toys "R" Us, Inc. ___________________________________________________________________________________________ Toys "R" Us, Inc. Recent Developments Jan 31, 2011 : Toys "R" Us offers to pay staffers $1m in back pay Fast Facts Headquarters Address One Geoffrey Way, Wayne, 07470, United States of America Telephone + 1 973 6173500 Fax + 1 973 6174006 Website www.toysrus.com Ticker Symbol, Stock Exchange N/A Number of Employees 70,000 Fiscal Year End February Revenue (in US$ million) 13,543.00 SWOT Analysis Strengths Weaknesses Efficient distribution capabilities Dependence on selected vendors Industry recognition Seasonal nature of the business Multiple channel selling strategy Wide geographic presence Opportunities Threats Growth of web-based store concept Increase in counterfeit products Increase in consumer spending in the US Increase in organized retail crime Strategic collaborations Jan 31, 2011 : Toys "R" Us offers to pay staffers $1m in back pay Jan 31, 2011 : Toys "R" Us offers to pay staffers $1m in back pay Toys "R" Us, Inc. - Company Overview Toys "R" Us, Inc. (Toys"R"Us) is a specialty retailer of toy and baby products. The company’s product portfolio includes children’s apparel, juvenile, learning, entertainment, core toy, parenting and seasonal products. These products are sold under various private labels such as Fast Lane, Imaginarium, Dream Dazzlers...
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...Water Sports company, I read with interest your posting for a receptionist in the water sports company. I believe I possess the necessary skills and experience you are seeking and would make a valuable addition to your company. In today's economy, there's no time to waste on workers who lack the necessary skills and motivation. I've got what you need. The attached resume details my extensive experience and training. If you choose to interview and hire me, you will not be disappointed. As my resume indicates, I possess more than 2 years of progressive experience in the customer service field. My professional history includes positions such as guest services/cashier at Babies R Us as well as a sales associate at macys. Most recently, my responsibilities as a guest service cashier at babies R us match some of the qualifications you are seeking. As the guest service cashier, my responsibilities included answering phone calls;assisting guest with different concerns and working with computers. I assisted in the successful completion of assisting guest accurately. My supervisor also relied on my ability to maintain front end guest services all by myself. I have attached my resume for your review and I look forward to speaking with you further regarding your available position. I'd be happy to provide greater detail about my skills and experience during an interview. Please call me at your earliest convenience. I am very interested in meeting to review your needs and possible ...
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...for this particular assignment is Toys “R” Us Corporation. I will evaluate the planning function of the company as well as analyze and provide examples on the influence that legal issues, ethics, and social responsibilities have on the corporation’s management planning. I will also evaluate three factors that affect Toys “R” Us Corporation’s strategic, tactical, operational, and contingency planning. Toys “R” Us is a leading retailer in toys and baby products. Toys “R” Us provides services to 873 stores in the United States and Puerto Rico and has expanded to over six hundred stores internationally. Toys “R” Us was founded over sixty years ago and have had the goals of being the world’s greatest kids’ brands by supplying a great variety of products while providing resources to keep their customers’ kids safe (Toys “R” Us, Inc., 2011). The planning function of Toys “R” Us, Inc. consists of creating a great environment for its employees by encouraging teamwork and collaboration with the foundation of trust and respect. The toy corporation’s plans for success also involves creating customer satisfaction by ensuring that they have a great experience each time they shop at any of their stores. They also want to ensure that their shareholders are satisfied through the consistency and reliability of their efforts. Toys “R” Us also want to maintain their reputation as a safe and caring neighbor in the communities in which they serve. Toys “R” Us, Inc. prides themselves in upholding...
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...Toys “R” Us Japan (Case No. 3) By: Maria Lemos-Janes INBS501: International Business: CONCEPTS / ISSUES January 22, 2011 Toys “R” Us Japan (Case No. 3) I. Problem Statement: Eager to enter the world´s second largest toy market, Toys “R” Us executives begin in the late 1980s to formulate strategies for opening large discount toy stores in Japan. However, the American company faced setbacks due to Japanese store-size regulation, application procedures, and a long-standing multi-layered distribution system. Continued effort and the acceptance of a Japanese partner enabled the company to prepare for the opening of a Toys “R” Us outlet in 1991. Faced with a lack of direct distribution deals and high land and labor costs, executives of Toys “R” Us Japan worried about the ultimate success of their new venture. Therefore, Toys “R” Us management must decide if entering the Japanese market is worth the effort it will undoubtedly entail. And if they decide to enter the market, they need to consider how to structure their entity; whether to modify their retail format to fit the Japanese market; and how to handle the political outcry that will inevitably accompany their investment. II. Alternatives: a. Status Quo - Continue to work with Mr. Fujita and McDonalds Japan to enter the Japan market b. Abandon the alliance with Mr. Fujita and McDonald's and work directly with the toy manufacturers to build the Toys “R” Us store and retail network c...
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...Navigation and the Impact on Breast Care Christina Reid-Brown California Baptist University Foundations of Management BUS 503A February 9, 2015 Dr. Marc Weinger Abstract This research paper evaluated the relationship between navigation and navigator roles as they relate to the patient journey with breast cancer. The goal of the research was to determine if these care coordination models eliminated institutional barriers experienced by patients trying to coordinate breast care in a complex healthcare system. It also evaluated the effectiveness of the navigator role as it supports the elimination of barriers to care for minorities and women living in low-income and underserved communities. This study reviewed the results from surveys given to women being treated for breast cancer at different hospitals, and cancer clinics to determine if navigation improves patient access to appropriate evidence-based healthcare. The findings showed higher patient satisfaction and compliance, continuity of care, decreased anxiety levels, and increased social support systems from families and friends when navigation services were provided. Key Words: Patient Navigator; Breast Care Coordinator; Breast Care Patient Navigator; Breast Cancer in Women; Current Studies involving Breast Cancer Introduction Breast cancer is the second leading cause of death and the most common disease found in women living...
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...Toys “R” Us is the world’s leading retailer of toys, children’s apparel and baby products. It sells merchandise in more than 1,550 stores in 35 countries, 849 stores are located in the United States, 170 in Japan, and 700 in other overseas locations. Toys “R” Us is divided into 5 corporate divisions which are Toys “R” Us, U.S., Toys “R” Us, International, Kids “R” Us, Babies “R” Us, and Imaginarium; accumulating between the 5 divisions an estimated business value of around $11 billion. Japan is an Asian country with 377,835 sq. kilometers and an estimated population of a little over 127 million inhabitants, it is known as an economically powerful an stable country. Japan’s economy is among the 3 largest economies worldwide and is the second most technologically powerful economy. From a cultural perspective Japan has strong cultural values greatly influenced by Confucianism and western cultures. When analyzing Japan from Hoftede Cultural dimension point of view it is clear that is low power distance culture with high collectivism, high masculinity, high uncertainty avoidance, and long-term oriented. This tendencies are reflected in marketing practices and consumer behavior, it also has a great impact on management as long-term oriented employment, high uncertainty avoidance, and long-life employment are expected from both employers and employees. Also managers have to be aware there is preference to local and high quality products, however there are some entry barriers and...
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...and Toys r us Beverly Boyd Man 223 08/02/14 The e-commerce of Amazon and Toys r us In the state of New Jersey, Amazon.com” filed a lawsuit against Toys R Us. The lawsuit stated Toys R US had“ infringed on the contractual agreement of their joint venture”. (Foster, 2004). Amazon asked for” $750 million in this suit. In return, Toys R Us countersued, “declar- ing Amazon had dishonored “the exclusive rights to sell toys, games, and baby items through third-party merchants on Amazons’ website, which were the same products sold by Toys R Us (Foster, 2004). Afterward, the lawsuits were petitioned to a high court, the “judge denied both party “ damages. But was appealed then a second time, to an appellate court; the judge ruled in favor of Toys r us, and was awarded $51 million. Afterward, Toys R Us shut down its website”. (Foster, 2004). Wal-Mart was one of the competitors whom “Toys r us was hurt by in August 2004. So Toys r us decided to sale its 1,200 toy-store chain, and a spin-off of toy or baby products businesses. Some investors purchased Toys r us for $6.6 billion in August of 2005”,the new owners made the company private; is it really over? (Mangalindan, 2006) In researching the court dispositions, there was evidence from the testimonies of the employees from Toys r us and Amazon, proving a breach of contract by Amazon. Although some of the witness for Amazon pretended to have a lapse of memory, on the other hand. Most the employees on Toys r us...
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...Week 2 Case Study Toys “R” Us During the 1980’s Japan’s GDP “grew at an annual rate of 7%” with retail sales booming with a 94% growth rate. This boom afforded the children of this era to be beneficiaries of such wealth and prosperity (Spar 1995). This put the retail category of the toy market in prime positioning for growth and expansion. Toys “R” Us wanted to take part in this booming economy and expand its growth into this lucrative Japanese market. Issues within the Toys “R” Us Japan case are primarily focused on the infrastructure of the retail industry in Japan. Japanese customers were accustomed to small retail shops, and a more personal shopping experience. Having a giant retail discount store was not the custom in Japan. The customer service aspect of Toys “R” Us was lacking in its profile for entering the marketplace, as it served more as a “self-service” discount warehouse. Coinciding with this small shop experience was the problem of the sheer size of a typical Toys “R” Us store, compared to a typical Japanese retail shop. The disparaging difference equated to a Japanese retail store taking up 3,200 square feet, with 1-2,000 SKUs verses a typical Toys “R” Us store at 54,000 square feet, with 8-15,000 SKUs of toys. Beyond sheer size, the Japanese small mom and pop stores, were at the heart of Japanese culture, and were an integral part of the Japanese way of life. Another huge barrier Toys “R” Us faced was breaking into the working relationships within...
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