Toys R Us Analyze The Market

Toys R Us first opened its door in 1948, it has been striving to be the market leader in whatever category they competed in. Whether selling toys or expanding and selling clothes, Toys R US market share fluctuated greatly throughout time. This was because it did not only focus on thing that they started the business with, but expanding its market to sell your daily needs. There was times where Toys R US owed the toy market with sales reaching 530 million in earnings. They reported their first losing year with a total of 132 million lost. The obvious question came to mind is why is Toys R Us experiencing difficulty in maintaining a competitive advantage in the market. When trying to figure out a strategy of a firm, we have to look at a company's

Some of the more important are Scanning, Monitoring, and forecasting the industry. SWOT analysis also plays a big role in figuring out a company's strategy. Toys R Us is in a very competitive industry where the entry barriers are low and new competition can come from any direction. Toys R Us should of analyze the industry in order to try to maintain their competitive advantage. There are several steps that are involved in figuring out your external environment: Environmental Scanning involves surveillance of a firm's external environment to predict changes and to detect changes already on the way. As an example, Toys R Us saw falling birth rate numbers in the United States and wanted to come up with a way that they can still have the same sales and profits even though the market significantly shrunk. Toys R Us said they would offer infant supplies, diapers near cost to encourage mothers with young children to shop there and to form a favorable opinion of the store including its pricing. This showed that Toys R Us monitored the new baby market and wanted to adjust its marketing and business strategies to adjust for those

Some of Toysrus.com's competition within its industry of online toy retail includes Etoys.com, and Toysmart.com. When looking at some of the competition it's as though Toyrus.com is all alone. Toysmart.com despite being part of Disney Empire closed down after being in service for only one year. Etoys.com, which had snuk up on Toyrus.com became their main rival, but they suffered a large stock price plunge from $86 to $7 during an eight-month period. These competitors are much smaller in size compared to Toysrus.com, who is not under any pressure to turn a profit rapidly since they have such a tremendous brand backing their success. On the other hand, these smaller online toy retail companies are under a lot of pressure to make profits. In response to the demands from online consumers on the online toy industry, Toysrus.com is doubling its web-based workforce to 600 full-time and 800 seasonal employees by this Christmas season. In regards to concentration, the intensity of competition is close to none because the online toy industry is fairly new and there are not very many companies to compete with. In this case, the competitors that are present do not have as wide a variety of products to offer the consumers compared to Toysrus.com who affiliates directly with the toy retail giant Toys "R" Us. The intensity of