This case analysis gives background on Toys R US's choice to enter the Japanese market. Toys R Us when making the decision to enter this market encountered numerous barriers to entry. Japan's social and political differences, coupled with the difficult retail environment, proved to be challenging to Toys R US. Unique country problems with suppliers, local regulations, and interest groups compounded the difficulty. Entry would have high costs, but the benefits of "cracking" into Japan's toy market proved appealing, since Japan had grown to the 2nd largest toy market worldwide. .
Toys R US could not enter this huge market by running their business like they did in the United States. For instance, Japanese consumers prefer personal selling, yet Toys R US has traditionally had a reputation for having very few employees on the floor to assist customers, coupled with centralized cash wraps. Distribution problems also proved important, as Japanese retailers deal with a number of middlemen and maintain high prices. Toys R US's competitive advantage lies in their ability to deal directly with manufacturers, buy in large quantities, and pass the savings onto consumers. Toys R US had to find a way to overcome these and other barriers discussed below in order to be successful. .
Political issues within the retail field made the Japanese market difficult to enter, including the power given to local shop owners to approve the entry of new businesses into the market. Known as Daitenho, these retail laws would prove challenging for Toys R US to overcome. This "Big Store Law" went into effect in 1974. It stated that local storeowners must give their consent before a retail outlet with floor space larger than 5400 square feet can be opened in their locale. This law allowed small, local businessmen the authority to force new competitors, namely Toys R US, into a review process that could last years. .
Most shop owners in Japan had an understanding with suppliers that the manufacturer's retail price was not to change, and in return the supplier would give special privileges such as allowing shop owners to return unsold merchandise, or sending shop owners free display items.
One of the more famous war photographers, Capa's photos showed us what our soldiers faced. ... To toy with the Germans, they even sent a fake first army, including dummy soldiers, tanks, and tent encampments. ... After Japan gave in and war was over for the time being, Capa had no option but to take a break. ... Capa might not be with us any longe! r, but his photographs always will be. ...
Along with their popularity, they have since expanded into larger chain stores such as Toys "R" Us, Barnes and Noble, and Target. ... In 1997 an avid Magic player, who worked for Nintendo in Japan, took the popular Pokemon based video game and applied to it the game mechanics of Magic. The result in Japan was an overnight success. ... In September 1999, Wizards of the Coast was sold for more than $325 million to Hasbro Inc., the worldwide leader and manufacturer of toys, games, interactive software, puzzles and infant products. ...
.0 EXTERNAL ANALYSIS 1.1 Industry Characteristics and trends 1.1.1 Definition of the market Volkswagen AG. is a German automaker that operates in the global automotive industry as a manufacturer and distributor. Volkswagen of America is one of its subsidiaries that based in the United States. Volkswagen's New Beetle is produced to target in the upper small car sector. The automotive industry is a consolidated industry as there are increasing number of joint ventures, takeovers and strategic alliances. 1.1.2 Market Size In the U.S., there were 8,272,042 unit of cars sold in ...
Lands End shipping includes US and International such as Canada, Japan, and all other countries. ... Product distribution is not applicable here because anyone from around the world with access to the Internet can purchase stock from charlesshwab.com ETOYS eToys is the online equivalent of Toys R Us in the physical world. You can browse around in age groups, toys, video games, and software; everything a child could want. ... Ordering is the basic form fill out and they accept credit card and K-B Toys Gift Cards. ... They only ship inside of the US. ...
r words, China has changed from a centrally based country in a regionally based country, in which different provinces produces different goods and servies. ... ly as high as Japan's at the time). ... China's 1998 GDP was about 45% the size of Germany's, 23% of Japan's, and 11% that of the United States. ... Comparisons of U.S., Japanese, German, and Chinese GDP and Per Capita GDP In Nominal U.S. ... Now, its exchange rate against the US dollar is at US$1: RMB 8.2789. ...
., of Kyoto, Japan, manufactures and markets hardware and software for its Wii U™ and Wii™ home consoles, Nintendo 3DS™ and Nintendo DS™ family of portable systems. ... The PSP is still relatively new as of this report but already there has been a shift in handheld gaming as over 500,000 PSP units were sold within the first two days of the US launch. ... For some parts, like the AC adapter, Nintendo has multiple suppliers of the component. 3.1.2: Bargaining Power of Customers The bargaining power of Nintendo's customers is also very low on because Nintendo sells hardware and sof...
The president of Kenstar says, "Our long-term R&D work enables us to turn out sophisticated designs that meet the needs of customers from all over the world." ... Kenstar plans on taking part in furniture shows in Japan, Germany and Dubai to expand their market share. ... 7 New Toys on the Horizon If you think Star Wars was far-fetched in the impressive pod race with young Annikan Skywalker, think again. ...
Risks are big, but profitability can be also big" - Morgan Stanley Dean Witter Introduction Amazon.Com is a leading online retailer company, offering for sale different items such as books, music, DVDs, videos, toys, electronics, software, video games and home improvement products serving almost 22.5 million customers over 150 different countries. ... Other retailing businesses in development are electronics, toys, home improvement, software and video games (see Figure-1). ... Recently, two new Web Sites were launched in France (August 31, 2000) and Japan (November 01, 2000). ... Net sal...
