Question

Toys r us case given the structure of retailing in japan, are the likely benefits of entry worth the inevitable costs? How would you get around these costs?

Answer 1

They have perhaps the most detailed, close-up view of the retailer as it went into decline and ultimately bankruptcy. Over the years, Toys R Us didn't just get undercut on toy prices or miss out on the e-commerce revolution. The retailer, especially after its 2005 leveraged buyout, continually underinvested in its business and employees, according to current and former employees.  

Stores went without maintenance. Dust collected on the floors and rafters as cleaning services were cut back. Employees grappled with expanding work loads. Knowledgeable staff were let go in cost-cutting campaigns. Key customer satisfaction metrics were fudged. Shrink increased. Key IT systems failed at the worst times.