1. Was Japan an attractive market for Toys “R” Us? Do you think there were any cultural obstacles to product acceptance? Strong competitors? a. Japan was a very attractive market for Toys “R’ Us. While there are cultural differences between the United States and Japan, the United States and our products are generally accepted by the Japanese. The use of McDonalds in the transition into Japan also helped Toys “R” Us. Toys “R” Us faced a few competitors when they entered Japan, but there was no strong competitor. In Japan at the time there was no such thing as a “toy superstore” so they quickly dominated the market. Toys “R” Us only faced competition from other popular brands producing toys and selling them in specialty shops. Some …show more content…
This was a he turning point because a Japanese product known to the people was being sold through this giant toy distributor. Soon other brands followed suit. They could have tried the alternative route of connecting with the Japanese toy manufactures in a way that would not seem so industrialized. 4. What were the problems in transferring the 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? a. Transferring the Toys “R” Us competitive advantage to a foreign market was a problem because in the United States Toys “R” Us was the largest toy retail store, but in Japan they had their own system for selling toys. They also faced the issue of how the Japanese value quality over value. The “low prices” approach wasn’t going to work because they were worried about the quality. Toys “R” Us had to rethink their major competitive advantage that was such a success in the States. Toys “R” Us decided to internalize rather then license another retailer because in the States Toys “R” Us was a huge success and before open the Japanese location, Toys “R” Us was already operating in eight other countries. They were not afraid to expand, not to mention they have their own system of success, licensing would jeopardize that success plan. 5. Given Wal-Mart’s threat in the US market, what should Toys “R” Us future strategy be? a. Toys
The strategies had given the company an advantage that about half of its toys are imported while other mass merchants and toy supermarkets only had less than 20 percent of imported toys.
Wal-Mart Corporation is one of the largest retail stores in the world. They serve customers in meeting their needs with low cost saving items. On October 31, 1962, Wal-Mart was founded and incorporated by Sam Walton in Bentonville, Arkansas. Mr. Walton went into business because he felt that items sold were too high for the average customer to afford. His focus was to sell products at low prices to get higher volume sales at a lower profit margin. He bought bulk products from different suppliers so he could incorporate savings into his pricing to lower cost for customers. Under the savings cost concept, Wal-Mart grew rapidly and surpassed its competitors in sales and generating profits.
(3) In an effort to replace foreign- sourced goods sold at Wal-Mart stores with American-made ones, Wal-Mart developed its “Buy American” program. By 1989, the company estimated it had converted or retained over $1.7 billion in retail purchases that would have been placed or produced offshore, and created or retained over 41,000 jobs for the American work force.
The competitive rivalry in the toy industry is intense. Organizations try to sell through their own retailers and online instead of solely through other retailers. Flexibility and responsiveness to the market are
Question #1 If you were CEO of Harley-Davidson, how would you compare the advantages and disadvantages of using exports, joint ventures, and foreign subsidiaries as ways of expanding international sales?
1. How well do you think Wal-Mart’s earlier, more limited health benefits supported the company’s overall business strategy?
And the reason of it was still the cost. Indeed, this former strategices failed to match their product characteristics with their supply priorities. That is, it cannot minimize their product cost. For example, using Japanese suppliers before was twenty to thirty percent more empensive than using Chinese suppliers, not to mention about the trasportation cost. In addition, their original Japanese design was still increasing the cost in China’s factories ----- increase equipment cost cannot make good use of the cheaper labor cost in China; increase producing cost by designing unnecessary function in China.
Through studying the entire retail toy industry, we have been able to understand the complexity of the industry in which Toys "R" Us operates. Upon completion of the analysis, we realized that the industry is growing stably,
JC Penney Co. Incorporated was founded in 1902 in Kemmerer, Wyoming by James Cash Penney and William Henry McManus. Today JC Penney offers a range of family apparel, jewelry, shoes, accessories, and home furnishing products through a chain of department stores and their company website. JC Penney, headquartered in Plano, TX, operates in the United States and Puerto Rico, with a total of 1,108 stores. JC Penney also offers its products through a catalog channel. Each channel serves the same type of customers and provides generally the same merchandise mix. JC Penney’s business is conducted through a single segment, but revenues are reported by product category. In addition to their product categories, the
Toys "R" Us, Inc. is the world’s leading dedicated toy and juvenile products retailer. As of January 29, 2005, it operated 1,499 retail stores worldwide and generated 11.1 billion in revenue. However, that’s a decrease of 1.9 percent from a year ago. Toys "R" Us has suffered from both downstream demand and increased competition from mass/discount channel such as Wal-Mart and Target. A group of private equity investors intends to do a leverage buyout of Toys "R" Us. They want to determine the risks and merits of an investment in Toys "R" Us, evaluate the spectrum of returns using multiple operating model scenarios, and identify strategic actions that might be undertaken to improve the risk/return profile
second largest toy market. A “category killer” that enjoyed phenomenal success in the United States
This paper will discuss the kroger company’s strategy and competitive advantage. It will also discuss competition and strategy from rival company Walmart. Research will show whether Kroger uses an offensive or defensive strategic approach to business practices. It will discuss mergers and acquisitions of The Kroger Company (Bethel University, 2017).
company was having a lot of problem on their distribution channels. There are so many retailers in Tokyo and they are small retailers. Routes for their tracks were so complicated .
3. Describe Family Dollar’s competitive advantages and disadvantages with respect to competition from conventional supermarkets and box stores.
This paper researched the fact that the Toys “R” Us Company was displaying a weakness in financial related issues due to the lack of proper strategic planning. This made the company susceptible to many threats in the industry’s competitive environment. The research has shown that its main competitors Walmart, Target, and Amazon are functioning successfully in the industry while Toys R Us heads for bankruptcy. This research emphasizes the fact that Toys R Us has not taken steps to strategize its operations properly which resulted in a loss of revenue and opportunities in their environment. If the company does not take steps to better its strategic planning, the company will not