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31. Toys R Us, a case we did not study, faced a very difficult time entering the Japanese toy market. Local toy manufacturers did not
31. Toys R Us, a case we did not study, faced a very difficult time entering the Japanese toy market. Local toy manufacturers did not want to supply Toys R Us directly. They feared that allowing Toys R Us to avoid going through their established, multilayer distribution network would anger and alienate their distributors. Such an approach, however, would have destroyed Toy R Us' margins. Toy R Us overcame this problem by using its relationship with Japanese toy manufacturers in the U.S. (where the Japanese toy makers needed Toys R US) to force them to sell toys to them in Japan. This is an example of exploiting what type of global competitive advantage? a. National differences b. Flexibility and Leverage c. Economies of replication d. Economies of scope e. Global Learning
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