Table of Contents
1 Introduction.........1
2 What Advantages did TRU (Toys "R"Us) have that helped it to enter the Japanese market?.................1
2.1 Changing Political Climate and Culture......1
2.2 Strategic network...........1
2.3 Established, Experienced, and Adaptable.........2
2.4 Publicity............2
3 How did the 20% stake taken by McDonald's help TRU to gain entry? ..........2
4 What problems do you anticipate that TRU will have in the next few years as it expands?.........4
4.1 External Problems..........4
4.2 Internal problems..........5
5 Conclusion......... 5
6 References.........6
1 Introduction
Toys "R" Us(TRU), a leading toy retailer, in the United States and abroad encountered many obstacles and barriers when expanding their operation into the Japanese market. The scope of this paper examines what advantages TRU utilized and how a twenty percent in-vestment by McDonalds of Japan help to gain entry into the Japanese market. This paper will further address what problems internally and externally that TRU could have as expan-sion proceeds in the following years.
English: McDonalds' sign in Harlem.
Mcdonalds Japan 06
Liberal Democratic Party (Malaysia)2 What Advantages did TRU (Toys "R"Us) have that helped it to enter the Japanese market?
During the late 1980`s to early 1990`s large retail stores had many local and political barri-ers to enter the Japanese market. Advantages that helped TRU to enter the market include: the changing political climate and shopping culture; strategic contacts; international experi-ence and adaptability; publicity.
2.1 Changing Political Climate and Culture
The first major advantage TRU that helped them to enter the market was growing resis-tance to the "big stores laws" existing in Japan during the mid to late 1980`s. It was stated in the case that there were lobbying efforts by Japanese businesses because the laws barred competition and benefited the large established stores that were created before the laws ex-isted. Therefore, the timing TRU chose to try to enter Japanese market was an advantage. The...