Toys R Us Japan

Toys “R” Us Case Study

First of all, it is a good strategy that Toys ”R” Us enter into Japan market. From the Exhibit 5 we can see that Japan is the second largest toys and games market in the world. If Toys “R” Us would like to be successful in international market, they should enter into Japan.

From this case, we can learn that how Toys “R” Us overcome the high barriers to enter into a new market. In my opinion, Toys “R” Us choose a good partner for this entry. They had a huge advantage, they signed on with McDonalds Japan to make this a joint venture with Toy’s “R” Us owning 80% and McDonalds owning the remaining 20%. This was quite an advantage because McDonalds had been so ingrained in the Japanese market that they were seen to many as being a Japanese company. Toys ”R” Us was able to utilize McDonalds in-depth market knowledge and research skills as well as the communication lines to the target groups of children and young families.

Another successful point is Toys “R” Us insist on their advantages although Japan has the limitation of store size and customer prefer to buy goods in small shop. Toys “R” Us kept their slogan, “Everyday Low Prices”. This turned out to be a very beneficial decision. Japanese customer was always looking for low prices but also wanted good quality in their products. This is what Toys “R” Us can provide. Moreover, Toys “R” Us not only carry the products from the American mainland but also adding in Japanese-style things which is supported by local manufacturers.