...Case study Toys “R” Us JAPAN Case study Toys “R” Us JAPAN TABLE OF CONTENTS Introduction 3. Japan Background and facts: 4. Background: 4 Facts: 5 Toys “R” Us Background 7. The Beginning: 7 Market Expansion 8 More ways to shop Toys “R” Us 8 Evolving business 9 Toys “R” Us in Japan 9 Case analysis: 10 Attractive factors of Japan toy market: 10 Barriers to Entry: 10 Success Factors for Toy's "R" Us-Japan 11 TRU Strategy 13 Our opinion: 14 Recommendations: 15 Conclusion: 16 References:: 16 Introduction: Toys R Us is the large distributor in the US and it is one of the more successful foreign retailers in Japan after overcome hard barriers. This successful is a result of right decision-making and strategy in overseas expansion by global retailer’s and gradual changes after entry into foreign markets. Also the strategy in respect of standardization adaption before and after entry has great effect in this successful. Coming lines, shows some factors that attract TRU to join venture in Japan. Then, we will discuss group of barriers that TRU had overcome, and how it’s overcome these barriers. In the end, we will evaluate Toys “R” Us in Japan market. Japan Background and facts: Background: Government: Parliamentary with constitutional monarchy Prime Minister: Shinzō Abe (elected Dec 2012) Capital: Tokyo Population: 127,368,088 Population Growth Rate: -0.077% (2012 est.), World Rank: 198th Birth Rate: 8.39 births/1,000 population...
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...Case Study Review: U.S. DOT ARRA Website Vulnerabilities Executive Summary The United States experienced an economic shock, commonly referred to as the “Great Recession”, in 2008 that resulted in the most job losses in any year since WWII. Payrolls plummeted, home values dove, and slumps were experienced in almost every sector of the economy. The administration of President Bush had agreed to provide federal loans to prop up the automobile industry and President-elect Obama inherited an economy in collapse. In 2009, the newly elected President Obama signed the American Recovery and Reinvestment Act (ARRA) into law. The Act provided stimulus spending in infrastructure, health, energy, education, unemployment insurance, social welfare programs, and many other areas of government interest. To address concerns from political opposition to that Act, ARRA included strong provisions governing transparency of the spending of taxpayer money. ARRA funds would be dispensed with strong requirements that taxpayers be able to monitor how their tax money is being spent. A major beneficiary of the stimulus funds was the Department of Transportation. To address the transparency issue, the department established a number of websites supported by servers and databases that the public could access to monitor the spending of their tax dollars. The DOT’s expanded web interface inherently exposed it to greater risk. This case study reviews an audit of that risk, the department’s shortfalls...
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...to explore the benefits of joining a global airline alliance such as Sky Team , Star Alliance or One World.(Bamberger , Carlton and Neumann, 2001) basically gave a breakthrough study on how alliances was formed. The foundation of an alliance started only on a code share basis and a share of marketing exercises. They focused more on the American market as opposed to other markets around the world as American carriers was the anchors of what we know now as a global airline alliance. Studies was done based on data from the mid 90's and gives us an idea on how and why it was formed. Their study focused more on the domestic market rather then international and it can't be proven on the global market. This research is essential for the topic as this gives us a brief of history on what was the foundation of a global airline alliance. They also emphasized only on the operators point of view which can perceived as opinion based information. No survey was done on population or sample to determine the benefits on the alliance from a consumer point of view to give an overview on the benefits of forming an alliance .In terms of air travel alliances is concern , a lot has changed since this research.(Goh and Uncles , 2001) focuses on benefits of global airline alliances from a consumer point of view. They did a study where they examined the perception that business travelers had of the benefits and went on to consider the importance of these benefits in determining airline choice. They reached...
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...Business Case Study: American Airlines 1. Perform a five-forces analysis of the US airline industry focusing on entry barriers and pricing rivalry Threat of new entrants: Though it might appear to be hard to get into, entry into the airline industry depends on whether there are substantial costs to access banks and credit. If borrowing rates are cheap, then there is more of a likelihood that new competitors will enter and the more saturated it will become for all competitors. However, an airline with a strong name brand like US Airways, combined with the offer of incentives, can lure customers away from new entrants, even in prices are higher. Power of Suppliers: In the airline supply industry, there is a duopoly between Boeing and Airbus. Because of this, there is not much cutthroat competition between the two. Moreover, suppliers will not likely vertically integrate in order to start offering flight service in addition to building planes. Power of Buyers: The bargaining power of buyers in the airline industry is very low. There are high costs for the buyer if he wishes to switch airplanes. Secondly, the service between airlines is practically identical. The seats won’t be any more comfortable nor will the food be any better. Threat of Substitutes: For those who need to travel internationally for business or leisure, the threat of substitution is low. For regional travel however, one might opt out to take a train or simply drive. For those that need to conduct business...
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...1. Choose one of the following three industries (NOT specific companies) for analysis: . Airlines (carriers) . Automobiles . Personal computers. RATE (not Rank) the global importance of each of Porter’s five industry forces on a scale of 1 to 5 (1 = Low, 5 = High), and provide at least two reasons for each rating. In addition, list at least three industries that complement the industry you choose. (30 points) Airlines Industry 1. Oil Service Industry- Fuel airplanes, and shuttle-bus. 2. Banking Industry- Some airline have their own credit union and others rely on banks for reward sky miles. 3. Insurance Industry- Employee insurance. Rate 4 Threats of New Entrants. At first glance, you might think that the airline industry is pretty tough to break into, but don't be fooled. You'll need to look at whether there are substantial costs to access bank loans and credit. If borrowing is cheap, then the likelihood of more airliners entering the industry is higher. The more new airlines that enter the market, the more saturated it becomes for everyone. Brand name recognition and frequent fliers point also play a role in the airline industry. An airline with a strong brand name and incentives can often lure a customer even if its prices are higher (Investopedia, 2012). Rate 4 Powers of Suppliers. The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isn't a lot of cutthroat competition among suppliers...
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...ABSTARCT: This report aims to give a brief understanding of strategic commitments, the rationality of predatory pricing and the extent to which predatory pricing strategies are used in the global airline industry. DATE: 5th March 2015 Introduction This report aims to give a brief understanding of strategic commitments and the rationality and extent to which predatory pricing strategies are used in the global airline industry. The Airline industry, being highly competitive, offers many examples of both Strategic Commitment making and Predatory Pricing strategies. What are Strategic Commitments... The commitments that firms make are two pronged, having direct and strategic effects. The direct effect is the clearly identifiable aspect of the commitment. The strategic effect of the commitment is more subtle, as it is the influence and response which the commitment generates from the competitors in the market in regards to their intended short/medium term tactical plans. Strategic commitments can be described as a form of strategy that firms have at their disposal, in which information on plans or intended actions by the business are publically released with the purpose of influencing the actions of other key market players. To be considered a strategic commitment the announced plan/action must have visibility so that those it is intended to influence can observe it, and it must be difficult to reverse, due to costs or other factors such as potential damage to a firm’s...
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...CHAPTER 1: INTRODUCTION 1.1 Research Background The competition between Low Cost Carriers (LCCs) and Full Service Carrier is getting intense caused by the process of liberalization in aviation field. In the case of Malaysia, the entries of LCCs, Air Asia, Firefly and Malindo have raised the number of passengers travelling inbound or outboard of the destination. According to Malaysia Airports Holding Berhad (MAHB) Annual Report 2009, the passenger movement of AirAsia for domestic traffic at KLIA increases to 5,588,493 passengers which is an increment of 10.6 percent compare to 2008. For the aviation sector, there is a significant growth of 16.6 percent, from 24.2 million passengers in 2009 to 28.2 million passengers in 2010. No doubts, airlines and airport are tightly related. This can be shown from the statement of Neufville & Odoni (2003), airport systems exist and must be designed in the context of their major clients, the airlines. To build airport facilities that will perform effectively, it is necessary both to appreciate the historical context and to understand the current and prospective needs of the users. Airports and air transport at the start of the twenty-first century constitute an exciting long-term growth industry. The industry is large, innovative, and has excellent prospects. The growth in air transport translates into major airport projects. And about a dozen major programs for airport development, costing over a billion dollars each, have...
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...STRATEGIC ALLIANCES IN THE GLOBAL AIRLINE INDUSTRY Abhishek Goel1 Abstract Strategic alliances are common to any industry. Their presence is felt quite significantly in the airline industry. Starting in the US in 1978 deregulation of airline industry has since brought about sea changes in functioning of the industry. This paper attempts to understand the developments and strategic alliances that have occurred in the airline industry since deregulation. These strategic alliances exist in various forms and differ widely in scope and no consensus on classification was found. The advantages and disadvantages of strategic alliances with respect to the airline industry have been discussed. It is felt that the industry is getting increasingly concentrated. However, no conclusive remarks can be made about consumer welfare. “Airline Business Alliance Survey of 2000 reports that there are 579 alliance agreements in place, up from 280 agreements (more than double) in 1994 when the survey was first conducted. Five major alliances (Star, Oneworld, Qualiflyer, Sky Team, and Wings) account for some 60 percent of all air travel.” (Mason, 2002) The lines above make the issue important enough to understand the phenomenon that is guiding the industry. Almost a decade back Oum, Taylor and Zhang (1993) argued that the airline industry will be marked by strategic alliances and these alliances will be global in nature. The guiding factors will be several that include formation of blocs, resource...
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...Abstract Now a days the term global alliance is widely used in every business, but its presence is more significant in airline industry. The strategic alliances in airline industry are global in nature. The past deregulation impacted on strategic alliances positively, industry is freer to set routes and cooperation’s, due to oil price hike the cooperation of airline firms was unavoidable. The alliances help generating traffic between an airline and other parties that are partner. The European alliances were threatened by US alliances; in such scenarios United Airlines and British Airlines came in contract to avoid threats from US airlines. The benefits of strategies alliances are to gain foothold in any country like many airlines did in Europe, while at the same time is to establish global presence. Strategic alliance and mergers of firms acts as marketing technique in airline industry. Many of the European airlines bought stakes from the Asian and US airlines by working on strategic alliances. In the airline industry there are three major alliances: One World, Star Alliance and Sky Team Alliance. The paper concludes that alliances are good to achieve betterment in things; the airlines may have better CSR responsibility and supplier’s behaviour under an alliance, moreover besides cost effectiveness much can achieve due to...
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...Journal of Industrial Organization Education Volume 5, Issue 1 2010 Article 1 United-Continental Merger Robert J. Carbaugh, Central Washington University Koushik Ghosh, Central Washington University Recommended Citation: Carbaugh, Robert J. and Ghosh, Koushik (2010) "United-Continental Merger," Journal of Industrial Organization Education: Vol. 5: Iss. 1, Article 1. DOI: 10.2202/1935-5041.1034 Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM United-Continental Merger Robert J. Carbaugh and Koushik Ghosh Abstract This case study discusses the nature and likely effects of the proposed merger between United and Continental. It is intended as a lecture for instructors teaching undergraduate courses in Industrial Organization or Antitrust Economics KEYWORDS: United, Continental, Merger, Antitrust Unauthenticated | 62.189.189.132 Download Date | 6/6/13 12:08 PM Carbaugh and Ghosh: United-Continental Merger United-Continental Merger On May 2, 2010, the Boards of Directors at United Airlines and Continental Airlines approved a stock-swap deal that will combine them into the world’s largest airline. The combined carrier will have 21 percent of domestic flying capacity, taking the lead from Delta Air Lines, which will lose what had been its leading 20 percent share of the domestic market. The deal still needs final approval from the U.S. Department of Justice and shareholders before being allowed to go forward. The firms hope to complete...
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...Haji-Ioannou a Greek Cypriot as part of EasyGroup Holdings Ltd. He envisaged it as a low cost airline which could impact on the existing domestic market in the UK which was at the time dominated by large British companies such as British Airways and British Midland. The Company started with two leased airplanes and began operating from London Luton to Glasgow and Edinburgh In 1996 they began operating from Luton to Amsterdam and now in 2014, operate on 633 routes across more than 30 countries and own 217 Airbus aircraft. They employ over 8,000 people including 2,000 pilots and 4,500+ cabin crew and in 2013 they flew over 60 million passengers They now claim that “over 300 million people within a one hour drive of an EasyJet airport” (Easyjet About Us 2013) The obvious move for the airline for further growth may now be outside of Europe and India may be the best market to consider. PESTLE Analysis Political/Legal Up to April 1997 the European Airline Market was regulated strictly and each county controlled their own airline companies. After 1997 and deregulation the European market opened up for carriers and subsequently for example an Irish low cost carrier like Ryan Air was allowed to operate between two other European countries. Since then European routes have increased by140% ( Ingdahl W. “Flying has never been safer” Spiked 19 03 2014) This was followed by the EU/USA Open Skies Agreement allowing any airline of either the USA or a European Union country to fly freely between their...
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...EXAM: MARKETING MANAGEMENT NO OF QUESTION: 2 DUE DATE: 5:00 p.m. 24th FEB 2013 TOTAL MARKS: 30 MARKS CASE STUDY: FLY MANGO | | |SPECIFIC INSTRUCTIONS: | |Read the attached case study: Fly Mango – affordable flying. This exam is based on the South African airline market and the position and | |role of low cost airlines in the market. You are welcome to gather additional information from relevant websites and industry sources. | . Fly Mango – affordable flying BACKGROUND Mango's first flight took to the skies on 15 November 2006 - 15 days after it was launched as the first true low-cost airline in South Africa. It was obviously what people had been waiting for, as during the first ten minutes of going live, the company's website recorded a record-breaking 15 000 booking requests, making it one of the biggest e-commerce events in South Africa's history. Living up to its mandate to make air travel more accessible to the millions of South Africans who have never been able to fly, the airline has entrenched its leadership status by pioneering a number of innovative special offers such as a R1 fare and successful daily lunchtime Happy Hour during June, among others. In fact, since its first flight, Mango has become...
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...COMM 225, FALL 2015: CASE STUDY DUE: November 28, 2015, 23:55 HR, SUBMIT ONLINE IN THE DROP BOX Each group is required to solve both cases provided below (i.e., answer all 4 questions) TO BE DONE IN GROUPS OF MAXIMUM OF 3 STUDENTS FROM THE SAME SECTION (WITH SAME CONTENT EXPECTATIONS) CASE 1: Cold Stone Transforms the Ice Cream Social with Facebook By Casey Hibbard (Published November 22, 2010) (Full length article available at http://www.socialmediaexaminer.com/cold-stone-transforms-the-ice-cream-social-with-faceb ook/) Ice cream has always been social. But Cold Stone Creamery has found a way to make it even more so—with Facebook. Today, Cold Stone continues to innovate outside the kitchen, recently releasing what may be the first eGift feature on Facebook, and running contests that get thousands engaged even more deeply with the brand. The payoff goes well beyond greater customer engagement; Cold Stone’s promotions add to the bottom line by moving people from their computers to physical stores. In July 2010, Cold Stone made eGifting more tangible. Now you can send Facebook friends a code for an actual ice cream creation eGift, ranging from $5 to $7, right from the Cold Stone Facebook fan page for delivery via Facebook or email. Like a gift certificate, recipients can instantly redeem the gift at any of the retailer’s American locations by showing a printout or the code on their mobile phones. For a viral effect, the eGift shows up in the recipient’s...
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...Airline Lufthansa Companies Strategic Change and Strategic Challenge for Lufthansa Introduction The biggest airline in Germany- Lufthansa is one of the leading airline companies in the world, but it suffered from the danger of bankruptcy in 1991. However, the flexible strategic change programs made it survive. Thus, the implementation and effects of those programs are obviously attractive and deserve further study. Moreover, current business environment is full of opportunities and challenges, which poses Lufthansa to identify relative challenges and adopt some reaction to respond. Therefore, this report will discuss two parts: one is strategic change programs and the other is current strategic challenges for Lufthansa. In the first part, it will evaluate the strategic change programs which Lufthansa applied and also cover the effects of leadership and politics. The second part of this report will analyse the strategic challenges for Lufthansa based on current and future business environment. I. Strategic changes for Lufthansa Strategy is argued to be a useful tool for an organization to achieve its target in the long term, and its contribution to development of the organization is evident. However, it is impossible to use one strategy to respond the changeable demand due to the dynamic external environment, so the organization should change their strategies to adapt the market. 1. Strategic change program According to Balogun and Hailey (1999)...
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...2.4. Characteristics of market development scenarios in the context of the creation of the new air carrier Depending on the market development scenarios in the context of creation of new air carrier proposed hypotheses of the study can be proved or disproved. Thus, below are factors that determine the development of scenario, confirming alternative hypothesis, according to which the creation of new air carrier providing safe, effective, low cost air services to a wide range of consumers will be profitable: Obtaining the required governmental approvals. Securing financing. Experienced management. Marketing; either dealing with channel problems and barriers to entry; or solving problems with major advertising and promotion budgets. Targeted...
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