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
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
Has 5 Division
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
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
Strong Cultural Values
Japan In Brief
Hofstede Cultural dimensions
PDI
54
Country
Japan
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
Factors Impacting on Marketing management practices in Japan
Japanese Culture Long-term oriented/high uncertainty avoidance Life – long
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
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
Has 5 Division
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
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
Strong Cultural Values
Japan In Brief
Hofstede Cultural dimensions
PDI
54
Country
Japan
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
Factors Impacting on Marketing management practices in Japan
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