Toys “R” US in Japan

Toys “R” US in Japan

 Vinsen Poonoosamy  W. Carr  A. Mag

Presentation - Overview
 Introduction  Toy R Us background/ Japan in brief  Impact on Management Practices  Entry Barriers

 Competitive Advantages
 Internalizing vs. Licensing  Future Strategy – Japan and USA

 Conclusion

Toy “R” Us background
World 's leading retailers of toys, children 's apparel and baby products  Sells merchandise in more than 1,550 stores
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849 stores in the United States 700 international stores in 33 countries 170 stores in Japan Toys R Us, U.S. Toys R Us, International Kids R Us Babies R Us Imaginarium

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Has 5 Division
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Estimated business value: $11 billion E-commerce sites including Toysrus.com, Babiesrus.com, eToys.com, FAO.com and babyuniverse.com,

Japan In Brief
Total Area: 377,835 sq km Population: 127,078,679 (2009 est.)  Ethnic groups: Japanese 98.5%, Koreans 0.5%, Chinese 0.4%, other 0.6%  Religion: Observe both Shinto and Buddhist 84%, other 16%  Economically powerful and stable
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Among the 3 largest and wealthiest markets worldwide Japan is the second most technologically powerful economy Culture influence by Confucianism and western culture Strong Loyalty

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Strong Cultural Values
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Japan In Brief
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Hofstede Cultural dimensions
PDI
54

Country
Japan
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IDV
46

MAS
95

UAI
92

LTO
80

According to Hofstede, Japan’s culture has:  low power distance  High collectivism  High masculinity  High uncertainty avoidance  Long-term oriented

PDI = Power Distance Index IDV = Individualism MAS = Masculinity UAI = Uncertainty Avoidance Index LTO = Long-term Orientation

These are reflected in Japan’s Marketing practices and consumer behavior

Source: Geert Hofstede 2009

Impact on Management practices
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Factors Impacting on Marketing management practices in Japan
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Japanese Culture  Long-term oriented/high uncertainty avoidance  Life – long

References:  About Toys"R"Us, Inc.. 2010. http://www1.toysrus.com/about/       (accessed May 5, 2010). Chatterjee, S.R., and A.R.Nankervis. 2007. Asian Management in Transition: Emerging Themes. Houndmills: Palgrave Macmillan. CIA World FactBook – Japan. 2009 https://www.cia.gov/library/publications/the-worldfactbook/geos/ja.html (accessed May 5, 2010). Hill, C.W.L 2009. Global Business Today. Boston: Mc Graw Hill Irwin. Hofstede, G. 2001. Culture’s consequences. London : Sage. Japanese Culture -- A Primer For Newcomers. 2004. http://www.thejapanfaq.com/FAQ-Primer.html (accessed April 08, 2010). Johansson, J. K. 2006. Global Marketing: Foreign Entry, Local Marketing and Global Management. Boston: McGraw-Hill Publishing Group. Question Time