The fate of Toys “R” US Japan is encompassed by issues such as leadership, understanding cultural diversity and implementing effective communication across varying cultures. Toys “R” US is a market leader in its industry particularly in the United States. Due to this advantage, its potential to expand can be possible across other economies with varying cultural backgrounds.
Toys “R” US eventually made its way in Europe. Amidst contradiction from the start among local counterparts, Toys “R” US was able to grow and continue to exist in the marketplace in Europe. Its expansion was not achieved overnight. It was able to experience challenges in times that it attempted to carry its strategic formula that it was able to successfully apply in the US retailing industry. In the US, its understanding about the market with customers who are after of the value they can get was able to inspire its discount formula. This made its fortune in the US retailing industry that it also envisioned to be achievable in other foreign markets.
Toys “R” US evaluated the toy market in Japan and the result was promising. In 1991, Japan had higher spending for toys. In fact, it was the world’s second largest market for toys for that year. The case is pointing it out that the good opportunity for toy market in Japan may be due to small number of children within a family and a higher demand for excellence in the academe. Children in Japan are encouraged to be excellent in the academe and a way to motivate them would be to reward them with toys. Furthermore, parents can afford to provide more toys for their children. A less number of children in a family in Japan proved to be an important factor why parents can eventually provide for their children’s needs for almost everything. ...
The company was willing to expand and go global. It started in Europe but eventually moved its way to Asia. If finally tried its chances in Japan and created a market evaluation in there at first. One important assessment it made was the interrelation between Japanese culture and its market. According to Hofstede the American culture emphasizes competition while Japanese culture emphasizes cooperation and harmony (Rainey, 1999). In reality Toys “R” US having the foundation of an American culture is always aiming to reach its competitive advantage. This is the very reason why it was able to evaluate the Japanese market in great detail. Along the way, it finally saw the importance of understanding precisely the prevailing Japanese retailing industry. Japan culture is known for collectivism while the United States is recognized for its individualism (Rainey, 1999). Toys “R” US finally was able to understand how the traditional retailing in Japan worked compared with the modern retailing strategies in the United States. Marked with certain level of competition and individualism, the Toys “R” US could hardly enter the Japanese retailing industry which was highly fragmented and ran by long-standing relationships among manufacturers, wholesalers and retailers (Spar, 1999). As stated in the case, Toys “R” US never took instantly its plunge into Japan’s retailing industry. It was able to familiarize the ongoing market trend in the retailing industry within the Japanese market. Toys “R” US was able to emphasize the value of understanding how it would market its product offerings and make it fit in the Japanese marketplace. Even though it was marked with full enthusiasm to enter into Japan’s market, Toys “R” US in the