CAGE MODEL Cultural: 1. Japanese customers supposedly preferring personal service over self service, 2.

Parents finding toys as a means to alleviate the stress built in schools for kids, 3. Reducing birth rates enabling better economical space for each kid in the home, 4. Retailer shop keepers rights to question the current distribution system sometimes is at jeopardy, 5. Japanese feeling sentimental about petty shops and elders finding it as a means for income, 6. Tendency to buy in small quantities for keeping them fresh [congested streets and smaller kitchens adding to]. 7. 1.4 million vote bank [shop keepers] means a significant political impact resulting in MITI enforcements on large scale payers to explain their plans to local shop keepers, 8. Trend Shift - Proliferating convenience stores like 7-eleven succeeding with apt supply chain strategies. Administrative: 1. Multilayered hierarchical distribution system with fragmented wholesalers serving a fragmented retail chain, 2. Small shop keepers empowered to block / postpone entries of large store international competitors with the help of law 3. Sometimes personal commitment driven supply chain rather than a rigorously competitive one, 4. Retail chains getting advice on finance and marketing [as well as at times competitor moves] rapport based relations, 5. Fugitas brave moves creating a rupture for Mcdonalds despite the rigid retail structure Suggesting trend shifts Geographic: 1. Suitable real estates for establishing warehouses facilitating large stores is an issue in japan, 2. Experiences of Lazarus in winning markets in geographies like UK and Germany despite trouble from retailers.

Economic: 1. rigid distribution based price fixing is not economical to the end consumer, 2. Same population as that of US, but shops are only 50% as that of US, 3. Distribution chain system contributing to 13% of GNP, meanwhile under employed workers in retail chains, 4. While economic system expanded in late 80s cracks appeared in the retail structure, customers looking for lower pricing,

5. Push from the US negotiators on how efficiently the market could be opened for international players.

Incremental Vs Radical Expansion into Canada could be seen as incremental, where as venturing into Japan market was possibly radical.