Toy R Us: A Case Study Of Global Marketing Components

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Recommended: Global and domestic marketing

Global marketing refers to the worldwide ‘the firm’s commitment to coordinate its marketing activities across national boundaries in order to find and satisfy global customer needs better then competition’ (Hollensen, 2014). Satisfying those customers needs was previously seen a a ‘global dilemma’ (Mukoyama, 1996) between standardisation and adaptation. Yet, a third option has emerged: the glocalisation approach. Glocalisation emphasises the need to adapt to country-specific characteristics as well as the standardisation of parts of a firm’s activities to sustain global competitive advantage (Hollensen, 2011; Sharma, 2009). The sources used for this essay comprise academic articles, case studies and the use of global marketing textbooks.

In order to fully appreciated the issues and opportunities of global …show more content…

The need for adaptation due to cultural factors has been demonstrated by Baek (2005) in a case study about Carrefour’s and Toy “R” Us entry in Japan. As Japan is a high-context culture and a highly masculine country (Geert-hofstede.com, 2015) the ethnocentric approach used by Toy “R” Us was extremely detrimental to their activities by reveal a need for a polycentric approach.

The technological aspect and the opportunity for adaptation is illustrated by Coe and Lee’s 2006 study of the Samsung-Tesco in South Korea. Moreover, as South Korean are extremely technology savvy (Cbre.com.hk, 2015) Tesco Homeplus adapted its promotion and place strategy by displaying advertisements in the Seoul underground where commuters could do their shopping by using QR-Codes (Tesco Plc, 2012).

The adaptation approach has its opportunities as described above but also lacks the standardisation’s systematic approach benefits such as economies of scale and economies of

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