TOYS “R” US CASE STUDY STRENGTHS- The business has been successful in achieving a high level of customer satisfaction among current customers and strong brand equity among potential consumers thanks to its specialized customer relationship management department. - Excellent brand recognition from all across the world WEAKNESSES- The products' marketing could have been far better. Even if the product is a sales success, its positioning and unique selling proposition are not well defined, which could invite competition to attack it in this market niche. - Did not adapt to the emerging trend of business OPPORTUNITIES- Opening of new markets as a result of government agreement. Toys R Us has been given the opportunity to join a new emerging market as a result of the adoption of new technological standards and a government free trade agreement. - Can get a lot of investors since the company is known worldwide THREATS- Intense competition; Over the past years, stable profitability has expanded the number of competitors in the market, which has decreased profitability as well as overall sales. - Products are expensive compared to those which could be bought online. TITLE OF THE CASE: CENTRAL ISSUE: STATEMENT OF OBJECTIVES: AREAS OF CONSIDERATIONS: ALTERNATIVE COURSES OF ACTION: HAVING DETERMINED THE CAUSE(S) OF THE PROBLEM, WHAT ARE YOUR PROPOSED SOLUTIONS TO YOUR PROBLEM. IDENTIFY THE ADVANTAGES AND DISADVANTAGES OF EACH ACA. TOYS “R” US BANKRUPTCY: MARKETING ENVIRONMENTAL FACTORS The company could not keep up with the changing business environment and could not or refused to adapt to what’s new The business is committed to supporting communities throughout the world as a dependable and loving neighbor by forming strategic alliances and implementing initiatives that are aimed at protecting children and providing for them in times of need. The products’ marketing, brand recognition, strategic management, internal and external factors affecting the performance of the business. Toys “r” us should adapt to new conditions and change their business model to a modern one so they could compete with other brands, get more market, and improve their sales. CONCLUSIONS: WILL YOU SUGGEST Yes, I would. If I relaunch toys r us I would suggest RELAUNCHING TOYS R US? IF NO, WHY, AND IF to also open an online store just like Watsons and YOUR ANSWER IS YES, HOW WILL YOU DO IT? other companies did. It would be very advantageous to them since they are a popular brand worldwide and they would gain a bigger and better market. WHAT LESSON DID YOU LEARN FROM THIS CASE Do not be too confident of how your business is STUDY? performing today because it might cause your business to fail. A lot of businesses failed because the management’s confidence grew too high. The companies' management believed they would be around forever. And despite the fact that rivals overtook them and market demands changed, this way of thinking persisted.
