ALCARAZ, ANGELA JOYCE Y.
BSBA MM-IV
1. What are the firm – specifics advantages of Toy’s “R” Us?
The specific advantages is low prices whereas in US they used discount formula to doing the
business. While in Germany, they using concept of a self- services toy for supermarket and they
flexible to adapt to the country political and culture issue. Thus, in Japan the lower prices that
minimizing the personal intention to each customer and cutting out any intermediaries from the
supply process.
2. What specific cultural and political barriers to entry does it face?
In Germany, the market culture they was partial boycott and public relation that condemned the
concept of self- service toy supermarket and the political barrier there face is the US retailer
wanting large- area sales space for the business and facing the competitors began copying
some of their approach. While in Japan, the market culture is focus on local and they preferred
with personal attention from the shop owner rather than the low prices and their political barrier
to entry that they face is they have limited space for retailer but they use less than 3,200 square
feet in area for their business. Although their restricting to spread the larger retailer stores.
3. Why was Toy’s “R” Us more successful in Japan than in Germany?
In Japan, they more successful because of local partner which is Den Fujita who had run the
business that bringing foreign non - luxury retailer business into the restrictive Japanese market.
While in Germany, they unsuccessful than Japan because they fault when they fail to enter their
business during the 1990’s there country was influence by the strong economy that they was
hard to enter their business because of regulation by the government of Europe