Toys R Us

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Toys “R” Us Japan

Answer1: Is Japan a good market for Toys “R” Us? CAGE Framework Cultural: * Lavish spending on children’s toys and clothes to compensate for constant pressure to excel in school * Greater preference to personal attention and guaranteed repair rather than low prices * But the younger generation owing to a greater international exposure realized that they were paying greater prices for many consumer goods compared to global standard * Cultural shift from taking over parents small shops to experimenting with bolder ventures * Principle of loyalty to manufacturers was strong in wholesaling and retailing Figure1: with the falling birth rate and fewer mouths to feed, the Japanese families
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In 1991, the entry of Toys “R” Us would displace more people from jobs than the opportunities it would create. The displaced people also include old people above 60 for whom this is a safety net post retirement. Japanese economy was in a state of virtual full employment with qualified male graduates preferring local employers to foreign establishments. Yet it will give employment opportunities for Japanese women
Conclusion: The entry of Toys “R” Us would shake the traditional Japanese toy business, however the cracks appearing in the retail structure points towards the need for transformation in the Japanese market. Hence Toys “R” Us potentially is a good prospect for the Japanese markets.

Answer3 Has Toys “R” Us chosen the best entry strategy for the Japanese market? Has it chosen the right partner?
It has core competency in its industry and has been in the International Strategy for long time. So, next opportunity would be for a Transnational Strategy following the incremental strategy where it should be focusing upon. In order to have it the Integration and Responsiveness should be high. It has successfully addressed the concerns related to CAGE framework by addressing the following concerns

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