Beruflich Dokumente
Kultur Dokumente
Vinsen Poonoosamy
W. Carr
A. Mag
Presentation - Overview
Introduction
Toy R Us background/ Japan in brief
Impact on Management Practices
Entry Barriers
Competitive Advantages
Internalizing vs. Licensing
Future Strategy – Japan and USA
Conclusion
Toy “R” Us background
World's leading retailers of toys, children's apparel
and baby products
Sells merchandise in more than 1,550 stores
849 stores in the United States
700 international stores in 33 countries
170 stores in Japan
Has 5 Division
Toys R Us, U.S.
Toys R Us, International
Kids R Us
Babies R Us
Imaginarium
Estimated business value: $11 billion
E-commerce sites including Toysrus.com,
Babiesrus.com, eToys.com, FAO.com and
babyuniverse.com,
Japan In Brief
Total Area: 377,835 sq km
Population: 127,078,679 (2009 est.)
Ethnic groups: Japanese 98.5%, Koreans 0.5%, Chinese
0.4%, other 0.6%
Religion: Observe both Shinto and Buddhist 84%, other
16%
Economically powerful and stable
Among the 3 largest and wealthiest markets worldwide
Japan is the second most technologically powerful economy
Strong Cultural Values
Culture influence by Confucianism and western culture
Strong Loyalty
Japan In Brief
Hofstede Cultural dimensions
Country PDI IDV MAS UAI LTO
Japan 54 46 95 92 80
Market in Japan
Preference to local products
High Quality Product
Cultural Obstacle
Employment culture
No more than 50 employees per store regardless of its
size
Loyalty to existing stores
Strong competitors
specialty stores
general retailers
occupy the largest portion of sales in Japan
Entry Barriers - Japan
Japanese toy retail dominated by small specialty
stores and general retailers
Large toy retailers make much less sales than small specialty
stores
Loyalty of suppliers
Unwilling to enter into direct deals with Toys “R” Us due to
their traditional way of making trades
Go through several layers of distribution
Cannot profit from low transportation cost for goods
manufactured in Japan.
Entry/Cultural Barriers - Japan
Developed/Industrialized country
Hard to find empty space for opening large stores
Behavior of customers
High purchasing power parity
Product Selection
Japanese not amazed by huge product selection
Japanese know what they are looking for
Toys “R” Us - Alternative mode of
entry
Direct exporting all goods from Toys “R” Us Japan is
not going to work due to high shipping cost.
Mc Donald
Family and children network
No need to spend extra cash in Market Research
Profit Driven
Do not exclude Japanese or US market
Should be innovative to survive