Toysrus Case Study Japan

In: Business and Management

Submitted By sunflowerpower
Words 837
Pages 4
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 Japanese distribution system. The multilayered distribution system relied on close, long term, personal relationships. The business style of Toys “R” Us, was not accustomed to such a tightly knit network of distribution. Many manufactures (such as Nintendo) refused to deal with Toys “R” Us directly; for fear that it would disrupt and disenfranchise these already established relationships.…...

Similar Documents

Japan Case Study

...[pic] Executive Summary The following report is an examination of the Far East Asian country of Japan. This report includes a look at the past, present, and future of Japan’s economic stance, cultural values, and business opportunities. Our group examined the relations between the Georgia-based insurance company AFLAC, and their Japanese counterparts. This report explains AFLAC’s strategic motives and successes they have found in doing business in Japan. It also identifies some of the weakness and threats that are in the near future if current practices are not altered. With over 70% of the revenue coming from the Japanese market, AFLAC should be concerned with any changes in economic forecasting for the country as it will be sure to have a direct effect on the future of AFLAC U.S. Japan has long been, and continues to be a major ally to the United States in terms of business relationships and cultural influences. Our report serves to outline some of the noteworthy things to consider when conducting business with the Japanese. Through an examination of AFLAC’s individual experiences in Japan, this report demonstrates the need for professional businesspersons to be aware of the countries cultural, personal, and business preferences. With the increase in the age gap of Japan’s population, in addition to the change of workforce demographics, it is becoming increasingly more important for U.S. businesses to consider expanding their products and/or......

Words: 8401 - Pages: 34

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Kfc Japan Case Study

...Kfc Japan Case Study – KFC Japan INTRODUCTION Kentucky Fried Chicken (KFC) was set up by Harland Sanders. In the first decades of the enterprise there were no management systems or strategic controls. However, it worked fine in the beginning, mainly because for launching new franchises an entrepreneurial spark was fundamental. Nevertheless, the company grew and after suffering declines in sales and profits the implementation of strategic planning, which was introduced by Michael Miles in late 1975, seemed to be an adequate measure to solve the problems. By 1979, the various programs of the strategic planning progress were beginning to show results. Anyhow, some foreign subsidiaries resisted and didn’t want to adopt these measurements. PROBLEM STATEMENT One of the main problems KFC was facing, was that foreign subsidiaries were not willing to adapt standards – like strategic planning - imposed by the headquarter. Especially KFC-J has been strongly resisting the implementation of administrative operational controls and systems. Should the headquarters be prepared to accept operational variations? Moreover, it had to be clarified what was an appropriate level of performance expectations for overseas units. Even though it was obvious that KFC had to maintain its drive for aggressive growth, there was incertitude about how to ensure the continuance of such growth. Additionally, there was the issue of how to expand into new markets and countries successfully. KFC......

Words: 306 - Pages: 2

Louis Vuitton in Japan Case Study

...the most popular luxury brand in Japan. In year 1970, LV opened its first stores in Japan, which had revenue of $1 Million on its first day. By 1977, the company owned two stores in Japan with annual profits of US$10 million Until Louis Vuitton, the strategy for business in Japan for multinational companies was to send their products through Japanese distributors. LV was the first company that took different approach and strategy of opening its own store in Japan. LV also hired Japan’s top designer for the Japanese Market products. In fact, LV tired to localize their products for Japanese to attract more customers as they saw the demand for the luxury in this market. One way LV localized their products was the use of Japan’s Classic Monogram Canvas Print on their bags, which was inspired by Japanese floral print. One way to show the success of LV’s business model is by using the four Ps. Product: LV handbags represented ‘products of distinctive qualities’ and ‘attention to details’. In general the concept of ‘relative quality’ is challenged by the ‘absolute quality’ which has forced customers to LV or nothing attitude. LV has taken action against counterfeiting item by Enlightenment Champagne, involvement of French trademark authorities etc., make there product defendable. Partnership with local artist and Limited edition products has demonstrated that Product Line up and innovation are very strong parts of LV business model in Japan. Price: Louis Vuitton handbags......

Words: 2215 - Pages: 9

Sharp Corporation - Beyond Japan: Case Study

...high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. Faced with threats such as intense industry competition, currency risks, very high transportation and utility costs, and extremely high infrastructure costs and high corporate tax rates, Sharp Corporation needs resources in the forms of new methods, technology, and approaches to doing business in the modern world. It is recommended that the company remodels their operating model in order to emphasize cooperation with other firms. Cooperation with other firms can take place in many forms, such as partnerships and joint ventures, and provides firms with many advantages. Sharp will greatly benefit from cooperative agreements since they are cost effective, provide financial support, and allow for more creative brainstorming. In addition, the economic risk is shared, and firms may help each other to tap into new technologies, methods, and approaches. Sharp Corporation needs outside help in order to achieve a turnaround. Joint ventures and partnerships with other firms open up the venue for such need. Problem Statement: Sharp Corporation is currently struggling with its financial position, aiming to achieve a turnaround in order to increase their sales revenue, capital, and finance, and ensure a sustainable future. The decision maker in this case, Mikio Katayama, President of Sharp Corporation, must reconsider the current operating model and develop an......

Words: 1934 - Pages: 8

Case Study

...Sharp Corporation - Beyond Japan: Case Study In: Business and Management Sharp Corporation - Beyond Japan: Case Study Executive Summary: Faced with major losses from operations, Sharp Corporation’s president, Mikio Katayama, questioned the whether it was necessary to reform the current business operating model. Sharp’s current operating model contained several flaws.  It placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. Faced with threats such as intense industry competition, currency risks, very high transportation and utility costs, and extremely high infrastructure costs and high corporate tax rates, Sharp Corporation needs resources in the forms of new methods, technology, and approaches to doing business in the modern world. It is recommended that the company remodels their operating model in order to emphasize cooperation with other firms. Cooperation with other firms can take place in many forms, such as partnerships and joint ventures, and provides firms with many advantages. Sharp will greatly benefit from cooperative agreements since they are cost effective, provide financial support, and allow for more creative brainstorming. In addition, the economic risk is shared, and firms may help each other to tap into new technologies, methods, and approaches. Sharp Corporation needs outside help in order to achieve a turnaround. Joint ventures and partnerships with other firms open......

Words: 305 - Pages: 2

Wal Mart Japan Case

...Japanese tends to prefer quality over low prices, which constrasts with Walmart core value as Wal mart's motto is Every Day Low Price. Also, Japan is a small country with limited spaces, which has several implications for Walmart. Small housings and apartment sizes, with high rent prices means that Japanese would need to minimize their purchases. Japanese are having trouble with lack of storage room to store purchases. For example, a typical apartment in Japan would be 1 room apartment with Living, Dining, and Kitchen area. A normal size of Japanese apartment are an average of only 27,55 sqm. Japanses likes to make several small purchases frequently. They minimize purchases, they would make their purchases several times a week, in small quantities. This means that stores would have to be readily available within reasonable distance, and bulk purchasing is discouraged. Compared to Walmart usual practice of centralized, big stores, with bulk purchasing to save costs, a neighborhood convenience store would be more suitable for the Japanese people. Japanese have high operating costs, especially because of the prices of rent and buildings in general. An average commercial land prices in Japan is 156,857 Yen (USD 2,017)/sqm, with average commercial land price in Tokyo reaching 1,551,400 Yen (USD 19,956)/sqm, followed by Osaka with average commercial land price of 493,700 Yen (USD 6,360)/sqm. I suppose it is very expensive compared to the U.S. They are also inability to apply......

Words: 754 - Pages: 4

Case of International Politics; Japan

...the environment (Karns and Mingst 1990,. The case of Middle East Japan after its victory against China comes as a rising state in Asia. With the gaining prominence of Japanese state in bodies like IMF and the World Bank, it is made clear that Japan acts as a ‘’global civilian power’’ influenced by the international changes. In concern to its external conditions and inderdepedence , Japan raises its regional security both by depending on its own industrialized production and in the coalition with US. The extensive coalition between US and Japan had its source not to the political notion of balancing in the name of gaining power over others, in this case USSR and its allies, but in the prevention of a future threat. This political act gave a different meaning to the ‘’bandwagoning’’ strategy that is observed to be an alternative to balancing (Organski and Kugler ,1980; Gilpin,1981; Elman and Elman,1995). Walt (1987) in response to the Waltz definition on bandwagoning, introduces the foundation of threat which undermined the centralized realist idea of power. Balancing is defined as’’ an allying with others against the prevailing threat; ‘’bandwagoning refers to alignment with the source of danger’’. In this case, Japan was pressed to enlarge its conventional forces by expanding to nuclear activities as other states like India, China, Pakistan, North Korea. The maintenance of the Non Proliferation Treaty from the side of Japan depends on the effect of inderdepedence with......

Words: 1529 - Pages: 7

Case Study

...CASE STUDY #KNG “Develop and Foster Unique Quality” Subject: IE 222 (04) – Engineering Management I. Define the Problem This case study seeks to analyze the problems encountered by SIA Corp in their transition from a Bureaucratic to a Learning Organization. It will also give an account on how will the employees respond on the change in the management approach of the corporation. The main issue in this study was finding an efficient method to transform SIA into a learning organization without making the employee feel uncomfortable with the change. II. Background and Objective of the Company The situation in this study infers the need to merge employee knowledge into one unified system thinking that it will help in the improvement of the efficiency of the performance of the corporation. SIA Corporation got hold of 30 separate firms. However, they were still acting like different companies. They still had their own management. This resulted into the development of specialization of each employee. Surviving in the industry with this situation is unlikely. Thus, the SIA needed to change their perspective and approach if they want to succeed. Through Jerry Seibert, the Chief Knowledge Officer of the newly created department – Knowledge Management dept – the change in the company's approach was accomplished. They were able to strategize a solution to help the SIA develop into a learning organization. Learning Organization is an organization in which everyone...

Words: 1506 - Pages: 7

Case Study

...Cross-Cultural Management CASE STUDIES 1. Lecture 2 Doing Business in Saudi Arabia Read the case Doing business in Saudi Arabia and answer the following questions . (a) Has religion been the main factor shaping Saudi culture, or are other factors at work here? What are those factors, and how important do you think they are? (b) Do you think that business practices in Saudi Arabia are likely to differ from business practices in Germany, and if so how? 2. Lecture 2 Matsushita’s and Japan’s Changing Culture Read the case “ Matsushita’s and Japan’s Changing Culture” and answer the following questions (a) What were the triggers of cultural change in Japan during the 1990s? How is cultural change starting to impact on traditional values in Japan? (b) How might Japan’s changing culture affect the way Japanese businesses operate in the future? What are the potential implications of such changes for the Japanese economy? (c) How did traditional Japanese culture benefit Matsushita during the 1950s-1980s? Did traditional values become more of a liability during the 1990s and early 2000s? How so? (d) What is Matsushita trying to achieve with human resource changes it has announced? What are the impediments to successfully implementing these changes? What are the implications for Matsushita if (a) the changes are made quickly or (b) it takes years or even decades to fully implement the changes? 3. Lecture 2 McDonald’s and Hindu Culture . Read the case “McDonald’s and Hindu......

Words: 789 - Pages: 4

Louis Vuitton in Japan Case Study

...Unit Four Case Study Analysis Kaplan University School of Business MT460 Management Policy and Strategy Author: Jessica Rushing Professor: Dr. Andryce Zurick Date: May 18, 2015 Louis Vuitton in Japan Company Name: Louis Vuitton Topic of the Week: External and Global Environment Synopsis of the Situation As of 2009, the Japanese market accounted for 45 percent of all luxury goods sold globally (Pearce & Robinson, 2013, p 14-11). Louis Vuitton preemptively identified Japan as a location that would help boost sales and brand loyalty, opening its first store in Japan in 1977 (Pearce & Robinson, 2013, p 14-14). The brand is facing some challenges as it attempts to continue seeing growth in the Japanese market. These challenges include competition, reduced location product availability, and counterfeit products to name a few. Due to the fact this country currently accounts for a large percentage of luxury goods being sold, the competition is at an all time high. Louis Vuitton faces challenges while battling rivals such as Bulgari, Gucci, Coach, and similar companies. Competition in the marketplace is a strong component of any company’s external environment. According to our text, an external environment includes, “the factors beyond the control of the firm that influence its choice of direction and action, organizational structure, and internal processes (Pearce & Robinson, 2013, p 87). In addition, Louis Vuitton has limited its......

Words: 1382 - Pages: 6

Japan Studies

...Final Report Japanese Human Geography “Working mom” in Japan According to the Japan Times, in the recent survey, it is found that 40 percent of respondents in their 20s to 40s believe husbands should work full time while their wives stay at home. Of all the male respondents, more than 64 percent said women should concentrate on parenting while their children are very young, and surprisingly, female respondents who supported that view reached 71 percent. The number of total respondents was 3,616. The results are unexpected and surprising when we consider the current policy Prime Minister Shinzo Abe is working on, to increase the ratio of women in the workforce as part of his government’s growth strategy. He promised to create a better environment for women to exert their talents, saying their power is a vital engine of his economic policies. However, regardless of the current efforts Abe is putting on, current situation is apparently not good for women to continue working after childbirth. According to 2013 survey figures, about 3.15 million Japanese women who want to work remain unemployed and more than 60percent of the women surveyed said that they quit work after giving birth because of the lack of support for working mothers. Even though Japanese people are renowned with their mature sense of civic awareness, women’s right issues still remain a concern and living as a “working mom”, seems to be extremely tough especially in the contemporary Japanese society. In......

Words: 1016 - Pages: 5

Case Study

...Case 8 500 English Sentences Scott sat looking out the window, watching a group of boys playing baseball in the school yard. Poor kids, he thought, they are the real losers in all of this. He looked down at a copy of 500 English Sentences and the endorsement letter on his desk. He glanced at the clock and realized that he had to have an answer for Mr. Honda within the hour. He was feeling very frustrated and stressed from the events of the past 10 days. He decided that he would go to the karate school after work, something that always made him feel better. He sighed as he thought about what he had to do next Scott Scott was 26 years old and had been living in Japan for 18 months. He was born in Auburn, Massachusetts, and had spent most of his life in the United States. Scott’s father was a successful entrepreneur who believed that hard work and good old-fashioned principles were the ingredients to success. He always taught his children to stand up for what they believed in and to never sacrifice their values in order to get ahead. Scott’s mother was a housewife who took care of the family home and the children. She loved to travel and encouraged Scott’s father to take the family abroad every year so that their children would have a better understanding of the world around them. Scott was a very disciplined student. He was an English major and had been on the dean’s honor role for every semester throughout his four years at college. During his senior year...

Words: 5016 - Pages: 21

Ben&Jerry's -Japan Case

...& JERRY’S — JAPAN James M. Hagen prepared this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail Copyright © 1999, Ivey Management Services Version: (A) 2010-08-10 On an autumn evening in Tokyo in 1997, Perry Odak, Angelo Pezzani, Bruce Bowman and Riv Hight gratefully accepted the hot steaming oshibori towels that their kimono-bedecked waitress quietly offered. After a full day of meetings with Masahiko Iida and his lieutenants at the Seven-Eleven Japan headquarters, the men from Ben & Jerry’s welcomed the chance to refresh their hands and faces before turning to the business at hand. It had been just over nine months since Odak had committed to resolving the conundrum of whether to introduce Ben & Jerry’s ice cream to the Japan market and,......

Words: 9509 - Pages: 39

Ikea - Case Study Expansion Into China and Japan

...“IKEA – A Long March to the Far East” Global Strategic Marketing Case Study Table of Contents 1 Introduction to the case 2 2 Critically and systematically analyse the global strategic advantages of IKEA 3 2.1 Branding , designer appeal 3 2.2 Critical mass, low cost, low price 3 2.3 Quality, green credentials 3 2.4 Global appeal, local sensitivity 3 3 What were the key challenges that IKEA faced in a) China and b) Japan? 4 3.1 Key challenges faced by IKEA in China 4 3.1.1 Cultural 4 3.1.2 Structural 4 3.2 Key challenges faced by IKEA in Japan 4 4 Critically discuss the marketing strategies used to address the challenges the company faced in China and in other markets. 6 4.1 China 6 4.2 Other markets 7 5 Discuss and justify what IKEA’s marketing strategies should be in the future in these two markets. 8 5.1 China 8 5.2 Japan 8 6 Conclusions 9 7 Bibliography 10 1 Introduction to the case From humble origins in the woods of Sweden in 1926, IKEA has developed into a major retail experience in 41 countries / territories around the world, with a current turnover of €23.1 Billion (IKEA, 2010). This case study explores the establishment and development of IKEA’s retail ventures in China and Japan – its first moves outside westernised countries and its first significant retail activity in Asia, despite substantial sourcing activity in the region, and discusses how IKEA might continue its market......

Words: 2661 - Pages: 11