Documents the American retailer's procedure for entry in to the Japanese toy market. Talks about a brief history of Toys R Us within the US along with the good reputation for japan toy market, distribution, wholesaling, and selling systems. Wanting to go into the world's second biggest toy market, professionals come from the late eighties to formulate methods for opening large discount toy stores in Japan. The American company faces a number of difficulties because of Japanese store-size regulation, application methods, along with a lengthy-standing multi-layered distribution system. Ongoing effort and also the acceptance of the Japanese partner enable the organization to organize for that opening of the outlet in 1991. Confronted with deficiencies in direct distribution deals and land and labor costs, professionals of Japan be worried about the best success of the start up company.
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?