Toys"R"Us in 1999

Published 01 Aug 2000
Reference 4896
Topic Strategy
Region North America
Summary

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?

Teaching objectives

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.

Keywords
  • E-Commerce
  • Category Killer
  • Commitment
  • Supply Chain Analysis
  • Competitive Advantage
  • Industry Structure.
    AR2000
  • RD0700