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Toys R Us

In: Business and Management

Submitted By nitishrajsubarno
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SITUATION AND CENTRAL ISSUES.

This case has a generally positive slant in that there it does not describe many

weaknesses and problems present in many others with which students would be

familiar. Toys R Us (TRU) has followed a path of international expansion from the

US via more than 13 countries, starting from Canada in 1984 and entering Japan in

1991. By any standard this is a rapid expansion of markets. This case illustrates

several elements of developing market strategies that have been central to TRU's

observed success in these markets.

First, TRU has developed a strong competitive advantage in its home market that is

based on fulfilling 95% of consumers' needs relating to children. This has been

based around large retail space and counteracting the cyclical nature of toy retailing

which traditionally peaks around the gift giving period during Christmas. Second,

they have succeeded in transferring their retail concept from the US to its newer

markets by modification of the product mix to suit local tastes. Third, they captured

international marketing experience by recruiting executives with international

experience such as Mr. Joseph Baczko who has been able to adapt the strategy and

use a non-standard approach to market entry. His approach has adapted their

successful entry strategy to fit the needs of the country environment. The following

analysis will commence with an analysis of the company and its business and

consider each of the issues raised in the foregoing discussion. This will be followed

by recommendations for future activities.

ISSUE AND PROBLEM ANALYSIS.

The Firm, its Industry and market expansion.

TRU is a company whose operational core is purely in retailing. The company has no

manufacturing capabilities and relies on developing its business strategies of fulfilling...

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