This article discusses the international expansion of Toys “R” and the cultural and political barriers it faced in Germany and Japan. It also explores the reasons behind the success of Toys “R” in Japan compared to Germany and the potential success of Toys “R” in other countries.
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Running Head:INTERNATIONAL BUSINESS 1 1 1 1 International Business Name Professor Course Date
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INTERNATIONAL BUSINESS 2 Question 1 According toSternquist (2017) the Toys “R” act as the base for the customers. It is principal target for the children varying from different ages. The toys “R” provide the customers with their industry reputation. It enables the establishment of the international market as a largest retail market in the world. It enables the international market to have a track of record regarding the production of the quality goods and services. The international market through the Toys “R” will be characterized by the satisfaction of the customers’ needs due to quality products production.Javalgi and Steven White (2012) states that the Toys “R” are a broad portfolio for the products within the companies in the international market. Many companies offer an extensive variety of productions such as Toys, games, sports equipment and action figures. The products are meant to cater for children across all ages and their state of interest. The Toys “R” enable the international reach. Many companies are serving as the international customer cares. Therefore, all the customers who are focusing on the international trade market find their way to have the accessibility of the Toys “R”. Question 2 There are some cultural and political barriers that Toys “R” are facing as they enter the overseas market. Many of the multinational countries set up their operations in Europe which is
INTERNATIONAL BUSINESS 3 the large economic base (Karakaya 2013, p.7-8). In German, when the Toys “R” decided to enter into the market of German, it was welcomed by massive boycotting. There was much of public blitz of realization which aimed at condemning the self-service Toy “R” supermarkets. The supermarkets having the stock of the Toys “R” were considered as wrong and threat to the German economy. Contrary to the fact that the managing director of the Toys “R” was from German, there was a great objection of the deal. The objection was against the political divide between the US and German. The US retailer was in a struggle to get into the sales space in German and this led to a political resistance of the production and therefore this becoming one of the political barriers that faced the product as it entered the overseas countries.In Japan, the Toys “R” faced the barriers in regard to the business models in tradition structure of the business culture. It had its cultural set format for the business operations. It set its attention in lowering the prices of the items and maximizing the attention of the customers towards the products. Nagashima (2010) the Toys “R” entered the country with different pricing format and therefore it did not meet the intermediaries for the Japan cultural supply process. In this case, Japan did not present itself in the Toys “R” business simply because there was a high risk of failure for the adaption of a new business model. Question 3 According toJavalgi (2015), the reasons as to why Toys “R” became more successful in Japan in comparison to German is that Japan did not focus on the changes brought by the new product. Despite the change of the business models in their marketplace, they tried their level best to overcome traditional and historical problems brought about by Toys “R”. This was not the case in German which just believed on their economy set up and they did not give room for new changes and products in their economy. Japan tried their level best to make sure that their
INTERNATIONAL BUSINESS 4 culture and traditional set up for their business models are compatible to the upcoming business model of Toys “R”. Den Fujita succeeded in running the Mac Donald in Japan and therefore he enlisted Toys “R” as a local partner (Dawson 2014, p.267).He was the only the business expert leader in Japan and therefore, he helped so much in bringing the non-luxury business models into the country. He lifted some commercial restrictions in Japan market and through that the Toys “R” were able to be implemented in their business model just like it was in the United States. Question 4 Toys “R” could be successful in my country but before then some barriers were to be encountered just like any other country. The fact that new products to the country may change the business model or even not compatible to the cultural and traditional trends, Toys "R" was to face some challenges in my country before it is adapted and absorbed to the market standards. I think in my country business could not take long before it is accepted by the retail business. Through the business management in my country just like in Japan, Toys "R" could be accepted in less than a year and progress merited.
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INTERNATIONAL BUSINESS 5 References Sternquist, B., 2017. International expansion of US retailers.International Journal of Retail & Distribution Management,25(8), pp.262-268. Javalgi, R.G. and Steven White, D., 2012. Strategic challenges for the marketing of services internationally.International Marketing Review,19(6), pp.563-581. Karakaya, F., 2013. Barriers to entry in international markets.Journal of Global Marketing,7(1), pp.7-24. Nixon, H., 2014. Fun and gamesare serious business. InDigital Diversions(pp. 25-46). Routledge. Dawson,J.A.,2014.Internationalizationofretailingoperations.Journalofmarketing management,10(4), pp.267-282. Javalgi,R.R.G.,Radulovich,L.P.,Pendleton,G.andScherer,R.F.,2015.Sustainable competitive advantage of internet firms: A strategic framework and implications for global marketers.International Marketing Review,22(6), pp.658-672. Nagashima,A.,2010.AcomparisonofJapaneseandGermanattitudestowardforeign products.The Journal of Marketing, pp.68-74.