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
market.
focused
JapaneseJapanese
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 Japans
toy manufacturers and toy
wholesalers.

VS

Theory Application :

FOREIGN ENTRY MODE

Nonequity
Equity

Exporti
ng
Licensi
ng
Franchis
ing
Greenfie
ldAcquisiti
on
Joint
venture

Implication

The most appropriate entry mode to

enter Japanese market :

JOINT

VENTURE
Lack understanding of local
knowledge
By partnering with McDonalds Japan, Toys
R Us could use the experience of
McDonalds Japan when they are about to
enter the market.

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