msc415-ass3 - join in a relationship with Toys R Us Another...

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Assignment 3 Toys R Us case 1. There were a few entry barriers when entering Japan. One of them was that the toy retail market was dominated by small specialty stores and general retailers. This was an entry barrier for they did not know how the Japanese would react to a toys only retailer, but it was also a benefit, for they were the first and only ones doing this in Japan. Also retailers dealt almost exclusively with Japan-made products. This was an entry barrier for Toys R Us because they would also have to get those products and create relationships with Japanese Suppliers while those suppliers would have the pressure of all other stores and retailers in Japan to not
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Unformatted text preview: join in a relationship with Toys R Us. Another barrier was space; Toys R Us would not be able to open large stores in big cities. Lastly, Toys R Us operated very differently than most stores in Japan; it had low-service which was very different for Japan. This was a cultural entry barrier. 2. Toys R Us decided to partner up with McDonald’s Japan which had already penetrated the Japanese market and had been very successful and was firmly established in Japan. By partnering up with them, they were able to use their market knowledge and research skills as well as the communications lines to target groups of children and families....
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