Even though TRU faces a lot of barriers to enter Japanese market, there are many advantages that help TRU to enter the Japanese market. First, TRU is the large distributor in the US, and appealed for help directly through the United States Representative and other channels in order to change the Daitenho which is the local law that prevent TRU to expand the stores in Japan. Secondly, TRU had Den Fujita, President of McDonald’s Japan, as a local partner. He can help TRU to enter Japanese market because he had substantial experience with real estate and also had a lot of government contacts. Thirdly, it was a recession in Japan in 1990s. Daitenho was revised. Finally, TRU had a lot of experience in operating stores in many countries, TRU experiences to adapt the operation system and policy in order to enter in international market.
As a result of taking 20% stake by McDonald’s would help TRU easier to enter Japanese market which had a lot barriers by local law. President of McDonald’s Japan, Den Fujita, would help TRU to enter to Japan market. He had a lot of experience in Japanese market. He also had many connections with Japanese government. These can be benefits for TRU because the good relationship can help TRU establish an edge and getting past the red tape. Moreover, he is local partner; he is familiar with Japanese business culture and can help TRU to adapt the strategy to get along with the culture.
As a result of forming the Japan Association of Specialty Toy Shops, Kiddy Land would pool purchases with others other Japanese retailer to buy the large amount of inventory. They will get the lower cost. Also they can reduce the price of their products. This will result in the situation of price competition. Also, there are more competitors in the market in the future. Moreover, this association would try to do anything to protect them from international business.
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