Toys “R” Us in 1999 (Japanese)

In 1999 Toys R Us faced the most challenging time of its history. After recording losses for the first time in 1998, it lost its number one position in toy retailing to Wal-Mart and was late in entering electronic retailing where eToys was pre-empting the competitive space. How would TRU be able to reaffirm its competitive position and improve its profitability?

The case allows an analysis of the strategy of commitment / category killer; its sustainability; the threats and opportunities of e-commerce to established players; and the strategy/viability of the new e-commerce competitors.