Analysis of Toys R Us Case in Japan

Analysis of Toys R Us Case in Japan There are various fundamental basics that any organization large or small scale needs to follow when setting up a new company locally and also when they venture across borders in international entrepreneurship. Effective management is one important aspect that will ensure that the company successfully achieves its goals and objectives efficiently. Management consists of organizing, planning, and leading (Adler & Gundersen 2008). Many businesses today define management as simply the things that need to be done to keep the organization going. However, for the business to penetrate the market, and experience continuous growth while maintaining healthy competition, it requires good leadership skills, effective communication, decision making skills and planning to maintain sustainability of the company in the local as well as international markets. Toys R Us is one company that has risen from one small store in the 1950’s to a multinational company that has a number of chain stores operating in the United States as well as other states such as Europe, Hong Kong and Singapore. This was achieved through effective leadership and management skills and good assessment of various markets. Lazarus, the founder of the company, observed the market in regards to customer spending and preferences. He build toy stores with self-service like in supermarkets and put discount prizes to undercut any threatening competition thus gaining competitive advantage capturing 20% of the toy market in the United States. By the 1980’s the company was flourishing and was way ahead of its competitors. As it expanded it wings internationally, the discount formula attracted many customers who rushed into Toys R Us supermarkets to purchase new toys. This move was not welcomed well by the locals in fear that the giant stores would drive them out of business. For instance, manufactures in Germany refused to sell toys from R Us fearing that their existing

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