Analysis of Toys R Us Case in Japan Term Paper Example | Topics and Well Written Essays - 3000 words

Analysis of Toys R Us Case in Japan - Term Paper Example As per Bank of Japan , the annual growth in the retail toy market in Japan grew 94% while GDP of Japan at an annual rate of 7% during 1970s. Further, toy market in Japan was ranked as the second largest in the globe trailing to U.S.A and in 1991; the worth of Japanese toy market was estimated at $7.1 billion. In 1991, about 29,413 stores were in operation in Japan and toy sales occupied a major share in their aggregate sales. Further, about 11,628 stores were exclusively dealt with toy, computer games and hobby specialty products. Further ,there were about 12,582 small general retail shops , about 2772 convenience stores , 1227 large toy specialty retail shops and there were about 500 bigger general stores, which had the significant share of their revenues comprised from the sale of toys. Toys R Us entry into Japan was well timed in corresponding with antisturctural restriction efforts by then Bush administration in U.S.A. Looking for positive PR , the Japanese government compelled t he regional government to soften the â€Å" Big Store â€Å" laws under which the present retailers in Japan could exercise the veto to the entry of a large retailer into their province. Toys R Us first store in Japan was established with an offer of more than 18,000 toy items as inventory located in 3,000 square meters, which was regarded as the best illustration of what has come to be labeled in U.S.A as a â€Å"category killer.†Ã‚   By establishing an awesome advantage, it was aimed to bar the competitors from establishing opposing stores before they started.... In 1989 , Toys â€Å" R† Us made its first attempt to enter into the Japanese toy market which was then controlled by small general retailers of tiny specialty stores .As per Bank of Japan , the annual growth in the retail toy market in Japan grew 94% while GDP of Japan at an annual rate of 7% during 1970s. Further, toy market in Japan was ranked as the second largest in the globe trailing to U.S.A and in 1991; the worth of Japanese toy market was estimated at $7.1 billion. In 1991, about 29,413 stores were in operation in Japan and toy sales occupied a major share in their aggregate sales. Further, about 11,628 stores were exclusively dealt with toy, computer games and hobby specialty products. Further ,there were about 12,582 small general retail shops , about 2772 convenience stores , 1227 large toy specialty retail shops and there were about 500 bigger general stores, which had the significant share of their revenues comprised from the sale of toys. Toys R Us entry into Ja pan was well timed in corresponding with antisturctural restriction efforts by then Bush administration in U.S.A. Looking for positive PR , the Japanese government compelled the regional government to soften the â€Å" Big Store â€Å" laws under which the present retailers in Japan could exercise the veto to the entry of a large retailer into their province. Toys R Us first store in Japan was established with an offer of more than 18,000 toy items as inventory located in 3,000 square meters, which was regarded as the best illustration of what has come to be labeled in U.S.A as a â€Å"category killer.† By establishing an awesome advantage, it was aimed to bar the competitors from establishing opposing stores before they started. (Johanson 2006:185).