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Table of Contents 1 Introduction1 2 What Advantages did TRU Toys RUs have that helped it to enter the Japanese market1 21 Changing Political Climate and Culture1 22 Strategic network1 23 Established Experienced and Adaptable2 24 Publicity2 3 How did the 20 stake taken by McDonalds help TRU to gain entry 2 4 What problems do you anticipate that TRU will have in the next few years as it expands4 41 External Problems4 42 Internal problems5 5 Conclusion 5 6 References6 1 Introduction Toys R UsTRU a leading toy retailer in the United States and abroad encountered many obstacles and barriers when expanding their operation into the Japanese market The scope of this paper examines what advantages TRU utilized and how a twenty percent in-vestment by McDonalds of Japan help to gain entry into the Japanese market This paper will further address what problems internally and externally that TRU could have as expan-sion proceeds in the following years 2 What Advantages did TRU Toys RUs have that helped it to enter the Japanese market During the late 1980s to early 1990s large retail stores had many local and political barri-ers to enter the Japanese market Advantages that helped TRU to enter the market include the changing political climate and shopping culture strategic contacts international experi-ence and adaptability publicity 21 Changing Political Climate and Culture The first major advantage TRU that helped them to enter the market was growing resis-tance to the big stores laws existing in Japan during the mid to late 1980s It was stated in the case that there were lobbying efforts by Japanese businesses because the laws barred competition and benefited the large established stores that were created before the laws ex-isted Therefore the timing TRU chose to try to enter Japanese market was an advantage The first reason is because they realized the changing political direction in Japanese retail sector and could achieve a first
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