Toys “R” US Japan Case

Ratri Ika Pratiwi/S2735652

Company Profile :

TOYS “R” US• 1957 : Founded by Charles Lazarus• 1984 : Going global by opening their

first store in Canada• 1991 : Trying to enter the second

largest market for toy

JAPAN!CATEGORY KILLER STRATEGY

Case Summary

• 1991, Toys “R” Us trying to enter Japanese market.

• Toys “R” Us found some difficulties in entering the fragmented and locally focused Japanese market.• Japanese media called them as “balck ship

of Kawasaki”.• Finally they succeed to enter the market

by Den Fujita helps.

Main Strategic Issue

• Japanese shop characteristics that different with US.

• The role of regulation.

• The chain between Japan’s toy manufacturers and toy wholesalers.

VS

Theory Application :

FOREIGN ENTRY MODE

Non-equityExporting

Licensing

Franchising

EquityGreenfield

Acquisition

Joint venture

ImplicationThe most appropriate entry mode to enter Japanese

market : JOINT VENTURE• Lack understanding of local knowledgeBy partnering with McDonald’s Japan, Toys “R” Us could use the experience of McDonald’s Japan when they are about to enter the market.

+20% 80%