Critical Issues in Business Management: Toy “Я” Analysis

This report provides an in-depth analysis of Toy “Я”'s business strategies, focusing on its critical advantages, the barriers encountered during international expansion, and the sustainable approaches employed, particularly in the Japanese market. The report highlights the company's self-service mod...Read More

Critical Issues in Business
Management

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Critical Advantages Toy “Я”......................................................................................................3
Culture and Political barriers while expansion at international market.......................................4
Sustainable Approaches used by Toy “Я”..................................................................................5
Toy “Я” is more success in Japan then Germany.......................................................................5
REFERENCES................................................................................................................................8

INTRODUCTION
The Toy “Я” was develop after the World War II that change the Industry of Toys
forever. It was developed by Charles Lazarus and created the idea called ‘baby bomb’ from the
statements by public to live an American dream and capitalize into business model. It brings up
with the store of his father bicycle shop and start selling carriages, Cribs, High chairs, stroller
and many other things for babies. This report will show the critical identifying the firm specific
advantages of Toy “Я” barrier that are faced by company during international expansion. The
sustainable approaches in japan which are identified by company. And reason behind more
successful of Toy “Я” in japan rather than Germany.
MAIN BODY
Critical Advantages Toy “Я”
 The company is self-service supermarket style format is one of the key advantage that
people are providing with different chances to view the toys according to their
choices. The different range of product can be selected by consumer to pick according
to their budget this makes customer more satisfied and customers to purchase
products according to her budget range from market (Zdanevych and et.al., 2020) . It
brings a competitive advantage where customer have large choices for products from
other sellers in market.
 They also have a central control feature in company which replace the required
inventory automatically in store. Once the toy sold from store, it will generated new
stock for company. This help company to maintain the inventory of company and
meet the demand of consumers. It also shows high demand for goods in market and
more consumer are preferring. This will help company to fulfil the demand for that
god in market. Maintaining of supply of goods that are having high demand in market
will assist to meet the consumer demand and market expectation within time.
 The company is using low cost strategy in market when it compare to other toy
retailing companies. It attract more customers towards company to purchase low price
product with high quality offered. As company is one of the major industry game
changer, company got high trusted customers that are makes one of the key benefit
for company. The company is having high goodwill value on market which help
customer to provide with value for a product and increase the company growth
ultimately. However, company is providing more discounts to loyal customer
 Another advantage is that Toy “Я” Is now established in international level where
supply chain management is highly strong and smooth where company can maintain
the market demand and supply to earn good profits while other companies may not
have such a high market to operate (YAZICI, 2020). It also help as large different
products are available in company to offer products according to different market and
customer behavior. For example: Demand in Japan will be different from demand in
America or Germany.

While Toy “Я” is also having high competition faced at an initial stage of stablishing
brand in new market. Company had face many challenges which affect the company to
make a brand mage in market. The American toys are quite different from other region
places and find difficulties to replace the local products into brand products. Also at
starting level of company had face many challenges and problems to establish itself into
new market specially I Germany and Japan. This have their own brands for toys and
diffract culture is also affect the company to operate in such countries.
Culture and Political barriers while expansion at international market
The Toy “Я” find many barriers toward the international expansion of company which
affect the operation and also find losses at some stage. The Barriers are political and culture
barriers in new markets. The barrier are majorly faced by company in Germany and Japan.
Political and culture barrier faced by company Germany:
 The Toy “Я” faced high barriers in Germany and major one is that culture of Germany
was not on self-service supermarket. This concept of Toy “Я” Wasn’t accepted for the
people of Germany as they think why company is selling non toys items to in market
(Sodiqov, 2020). This method so not accepted by German people which face high barrier
to company and affect the operation in German Market. The concept of Toy “Я” is
failed at initial stage in the market which cause high losses to company and had face
many challenges and problems before expanding to German market. To generate demand
for Products Company need to be aggressive marketing tactics use that increase the
demand and supply of Toy “Я” products in market.
 One of the major political barrier that is faced by Toy “Я” in German market before
expansion is that strong objections are put on U. S retailer by German politicians that are
holding large area for sales in market. This makes retailer in a target zone where German
politician are targeting to retail companies which are operating in country. It affect the
companies in large aspect that are operating in large scale. The government had put many
objections and penalties to this which impact on operation and finical position of
company in that market.
 German culture show that toy shop should be at center of city and not in the edge of city.
This impact company to gain a large space for their store and operate freely according to
company’s policies. It also include high cost for company as center of city will cot way
more than any other places for company to operate (Cai and et.al., 2020). This affect the
smooth flow of operational and strategies that is prepared by company on supply chain
management.
Political and cultural barrier faced by company in Japan
The Toy “Я” had also faced high barriers as Japan toy industry remain high fragmented
and local focused (Henman, 2021). The local people are more into local products using habit and
not branded products of international brands. This brings up with a high impact on international
expansion this bring up with high barrier as to attract customer towards the product is hard by

company. The company is using marketing tactics which can generate demand in market but find
hard to increase.
 One of the Japan biggest barrier is that local people are more likely to purchase local
products and to other brands. They are promoting more to localize products and no other
products. This make Toy “Я” very difficult to sustain in market where international
brands are not recognized by people.
 The political barrier is also occurring at point when to increase the size of store in market.
The restriction to spread large retail store that affect the market operation in country. The
company have many restriction and not operate according to own company policies. The
international brands are less promoted by country like Japan.
 The supply chain of for whole seller is very hard and complex as it include five layer of
channel to reach out final customers. This will increase the cost of company and tale
more time to reach out with final customers (Adomako and et.al., 2020). Japan working
culture is more towards owner attention in store. This may create hard to fulfill as the
international firms to attend the each stores personally in country. This factor is more
prefer by local people and not low prices are preferred by people.
Sustainable Approaches used by Toy “Я”
The Toy “Я” is need to use a suitable approaches for Japan which are governed by
=japan country to all international brands. This sustainable approach used by Toy “Я” is Green
marketing method that is adopted by company (Kitamura and et.al., 2020). To secure the
environment and pollution free marketing, Toy “Я” had use this approach in the marketing of
products. The company is moving towards digital platforms in Japan and other factor that
promote the products of Toy “Я”. The suitable approaches of company is very imprint in japan
market as to promote goods. This help to gain more trust and loyal customer from market and
increase the market growth of company. The company is following gender equality policies in
store of Toy “Я” within Japan. This help to promote the working and maintain the equal
treatment between genders. This will promote brand name in market and increase the goodwill in
market than other company. Maintain the environment and culture according to Japanese rules an
regulation, Toy “Я” had created strategies according to their market structure and working
habitual (Mendy, Rahman and Bal, 2020). To increase the demand of products and stablish in
market, it is imprint for Toy “Я” to work with sustainable approaches to gain the market share
and increase the demand of their products in spite of local product. However, this are some
sustainable approaches which are used by Toy “Я” In japan market to remain in market and to
gain competitive advantage.
Toy “Я” is more success in Japan then Germany
The Toy “Я” is more successful in Japan when it compare with Germany is due to
German government was not promoting the U.S brands in country so it find lack of government
support to international firms. This makes U.S firms hard to operate in a market where they is
lack of support to operate and expand the business in market. There are lots of objection of U.S

companies which affect the operation and working in German market. It also increase the cost of
products and reduce the profit margins of company. The demand for products of Toy “Я” is not
increasing and customers demanding are reducing. Also, there is high competition I market of
Germany which are also affecting the product demand and company is not earning good enough
profits from this market (Schumacher, Chenet and Volz, 2020). While from japan market, Toy
“Я” get help from influencer called ‘Fujita’. This help to promote the products in market and
gain competitive advantage. It aid company to create the market demand for products and to help
to known about the culture of Japan even more effective. The Japan government was so involved
in international companies to restrict company in market. The policies are quite lenient toward
copay from government not restricting in every process of company.
The Toy “Я” is able to generate demand for goods they are selling in market and gradually
gain the trust of consumer in market by following the suitable approaches. The involvement of
Toy “Я” towards development had increase in market which help to gain the trust and loyal
customers. The quality products with low prices products are offered to customers, while
employment opportunities are also being created by company. On the other hand, Germany that
had high competition within international brands and U.S brands only which are mostly affecting
the company to expand in Germany (Fredriksson and et.al., 2020). The cost are investment
budget is increases slowly on company and creating aggressive market to compete with. The
company had face losses at the initial stage of while operating in the Germany due to the
political barrier that affect the policies of company and strategies that need to change according
to German government.
However, it can said that, Toy “Я” is being more successful in Japan due to support of
government and culture is not so hard to adopt y company while in Germany, it is hard to
operate in country where government is implying many objection to U.S based companies. This
affect the company demand and cost during expansion of business.
Conclusion
The above report conclude that Toy “Я” is gained a high advantage from its operation
after World War II. The companies can easily gain customer trust due to its involvement in
industry. After increasing the market share in U.S, Toy “Я” increase the market internationally.
The company is more with faced culture and political barrier while expanding into Japan and
Germany. This barrier affect the company at initial stage while expanding but company had
implemented its business into this market after a long efforts. Further, Toy “Я” had implied
sustainable approaches in Japan that help to involved in country and increase the demand for
their products. Lastly it can scene that Germany had impose various restriction and objection to
U.S companies for large space holding market which affect the companies while Japan market
are more successful for Toy “Я” to operate in.

REFERENCES
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Tourism, Economics, and Population: The Case of the Echigo–Tsumari Art Triennale in
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Fredriksson, U., and et.al., 2020. A Comparative Study of Curriculums for Education for
Sustainable Development (ESD) in Sweden and Japan. Sustainability, 12(3), p.1123.
Henman, L., 2021. Risky Business: Why Leaders Must Develop a Disruptive Mindset. CRC
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Kitamura and et.al., 2020. Carbon footprint evaluation based on tourist consumption toward
sustainable tourism in Japan. Sustainability, 12(6), p.2219.
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effects of politico‐economic and social barriers on SMEs' internationalization in an emerging
country context: Implications and future directions. Thunderbird international business
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Sodiqov, H., 2020. The role of toys in shaping the creative thinking of primary school
students. Архив Научных Публикаций JSPI.
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