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SWOT Analysis of Toys 'R' Us

MSOM 301 SWOT Presentation

Carter Horton

on 5 December 2012

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Transcript of SWOT Analysis of Toys 'R' Us

League of
Management Company Information Strengths Conclusion & Recommendations - Toys R Us is a electronics and toys store aimed to centrally focus on adolescences.
- Opened in 1948 the company has continued to grow and expand
- Statistically now, there are 875 Toys R Us stores in the US & Puerto Rico
- Internationally there are 625 stores 1. Long standing reputation company founded in 1948 right here in Washington DC.
2. Company operates more than 875 in the United States, more than 625 international stores.
3. Employs 70,000 employees (123,000 During the Holiday Season)
4. #194 on Fortune 500 with almost 14 billion dollars in revenue.
5. The employees are well chosen and well trained to do their respective jobs.
6. Improved company website with serves as an online shopping center.
7. Comprehensive range of merchandise.
8. Having so much shelf space means that the company has a strong bargaining position when it comes to buying prices from manufacturers.
9. It has a huge distribution network that benefits from advanced logistical systems.
10. Recently acquired flagship toy store in New York (FAO Swartz) -Discounted Prices
-Restore Relationship with Amazon
-Friendlier Employees
-Promote Deals and Coupons
-Expanding International Market

-Cell 2 Categorization MSOM 301-002 Presents: Weaknesses 1. Toys "R" Us is lacking a competitive advantage against
retailers like Target and Wal-Mart
2. Toys they sale are not unique to the store
3. Amount of sales depends on the season
4. Safety concerns with the products
5. Low sales of entertainment products like video games and
related software
6. Toy makers starting to sell directly
7. Higher prices than their competitors
8. Inability to bring people into their stores
9. Toy only industry
10. Online competition from sites like Amazon Opportunities 1. Internet (The Company website can be further improved by
making it more user friendly and informative.)
2. Entering in a category for young adults (between 16 and 19
3. Re-designing shops
4. Increase service level
5. Market expansion (Marketing of existing product in current and
new markets.)
6. Trendy business
7. Product Assortment Exploration
8. Good neighbor (Toys “R” Us helped victims of hurricane Katrina
in Louisiana in 2005)
9. International Market (China, India.. etc.)
10. Sustain brand with key consumers
11. Joining ventures and strategic alliances (Toys "R" Us works
closely with Amazon.com and its baby products category) Threats 1. Wal-Mart and Target are cutting into Toys-r-us’s profits and market, pushing them out of the business.
2. Relationships with suppliers are strained because of Wal-mart and Target.
3. As consumers increasingly go online for shopping, Toys-r-us stores find it harder to make a profit as eToys cut into their market.
4. Weaker marketing strategy than its competitors.
5. Toys R Us was late to develop its online retail department which gives an advantage to its competitors who already have solid online retail.
6. Bad relationship with previous online retailer Amazon.com
7.Startup costs of online vendors is relatively small and therefore presents an opportunity to smaller competitors to take more market share.
8. Video Game vendor GameStop has cut into a lot of Toys R Us video game market.
9. Toys R Us hasn’t recorded profits since 2010 and their Fortune 500 spot has been slipping since 2009.
10.Toys R Us has received a lot of bad PR due to angry consumers who have been mistreated the last few years. This has resulted in a few FTC lawsuits. Presented by: Rachel Berryman
Roxana Bonilla
Cendy Chou
Carter Horton
David Lim
Sofiane Salmi
Daniel Schmidt
Robert Underwood Toys "R" Us SWOT Analysis Company Information There are four "R" Commitments that Toys R Us leads by:
- R Teams
- R Customers
- R Shareholders
- R Community There are four "R" Values as well:
- Rapid
- Real
- Reliable
- Responsible Company Information Introduction Toys "R" Us -Great Employer
-Job Experience
Full transcript