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Analysis of Toys "R" Us

Similar security and reward systems are used by the company to minimize the level of retail management turnover.

In the context of annual sales levels, Toys "R" Us is a major American corporation. Annual sales in 1991 approximated $14 billion.

An important external factor that affects Toys "R" Us is the federal consumer product safety law in the United States. Although Toys "R" Us does not manufacture the toy products it sells, it is subject to liability for the sale of unsafe toy products.

Toys "R" Us operates in the international environment. The company operates stores in Canada and Western Europe, and recently opened its first store in Japan in Tokyo.

The organization's stated mission is to be the leading purveyor of toys in the United States, and to be a leading marketer of other products for children. Key results areas for Toys "R" Us are sales levels, market shares, and profitability.

In the context of strategy, the toy industry is in a transition phase from a hitdriven industry to a coreproduct industry (Sullivan 1550). As a coreproduct industry, stability is expected to be provided by brandname toys (Sullivan 1550). This industry shift is significant for Toys "R" Us, a company that places a high priority on brandname products in its marketing strategy (Kotik 1717).

The toy industry also seeks diversity in products and markets (Sullivan 1550). Diversity is sought by toy manufacturers though both maintaining a portfolio of stable products, and spreading the portfolio of products over a large number of product categories (Sullivan 1550). Toys "R" Us follows this strategic approach in the development of its product stock list.

In the context of opportunities, threats, strengths, and weaknesses, toy manufacturers consider their best growth markets to be in countries outside of the United States (Sullivan 1550). This assumption is not particularly comforting for a firm such as Toys "R" Us that opera...

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Analysis of Toys "R" Us. (1969, December 31). In LotsofEssays.com. Retrieved 13:00, May 02, 2024, from https://www.lotsofessays.com/viewpaper/1691473.html