Toys R Us

406 Words1 Page

These past few years haven't quite been all fun and games for John Eyler, chairman and CEO of Toys "R" Us. Shortly after joining the company in January 2000, Eyler set about revamping Toys "R" Us to better compete in the marketplace while brushing up the company's image. But a downturn in the economy together with the effects of 9/11, not to mention the West Coast port lockout, wasn't part of the plan.

Although he still has considerable work ahead of him, Eyler's efforts appear to be paying off. Total sales were up two percent for both the second quarter and the first six months of 2002, compared to the previous year, and results for the entire year should likewise prove relatively strong. The company credits "careful attention to inventory management combined with very strong expense controls" for the positive numbers. Customers, however, are impressed with the improved service, remodeled stores, and price cuts on hundreds of toys.

Part of the company's successful turnaround lays in the partnership its Toysrus.com unit formed with Amazon.com just over two years ago to sell toys online. Under the agreement, Amazon.com is responsible for handling all orders, including shipping and customer service, for Toysrus.com. The primary responsibility of Toysrus.com is to choose the toys to offer online and make sure there's plenty of available stock.

Both companies will face challenges, however. For Amazon.com, the test will be to make sure its complex fulfillment systems integrate seamlessly with Toysrus.com's. The eTailer must also coordinate the tricky placement of products in distribution centers to avoid cost overruns. Toysrus.com is faced with finding the right balance between supplying Toys "R" Us stores and the web site with "hot" toys, so as not to disappoint customers. Furthermore, to make orders profitable, it must get people to buy multiple products.
The venture has also helped build both companies' brand names and extend their reach into the marketplace. According to John Barbour, president of Toys "R" Us International, and one of the executives who played a pivotal role in creating the partnership, about 1.

Show More
Related

  • Case Analysis Of Amazon

    1837 Words  | 4 Pages

    Amazon.com’s US operation business model is based on “sell all, carry few”. Amazon offers consumers a wide selection of products while keeping inventories at low levels. A major interest for Amazon in the US is optimization of netwo...

    Read More

  • Mattel Executive Summary

    438 Words  | 1 Pages

    Mattel wants to improve their execution of the existing toy business and globalize their brands; extend their brands into new areas; identify new trends, create new brands, and enter new industries; develop people and improve productivity by simplifying processes and maintaining customer service levels. Mattel wants to make a positive impact in children’s lives around the world by using unrivalled creativity and innovation to create high-quality toys that will be loved by children and trusted by parents.

    Read More

  • Amazons Fulfilment

    2973 Words  | 6 Pages

    Warsia, Noor. (Designer). (2013, June 7). The Fulfilment by Amazon distribution model [Web Graphic]. Retrieved from http://www.digitalmarket.asia/2013/06/amazon-flows-into-india-ebay-snaps-a-us50-mln-deal-e-commerce-in-apac-to-get-fillip/

    Read More

  • Toy World Business Analysis

    1071 Words  | 3 Pages

    Toy World, Inc is a manufacturer of plastic toys for children, founded in 1973 by David Dunton. In the past, the company's production schedules had always been highly seasonal, reflecting the seasonality of sales. Jack McClintock, president and part owner of this company, is considering a proposal to adopt level monthly production for the coming year.

    Read More

  • Analysis of Amazon.com

    2511 Words  | 6 Pages

    Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...

    Read More

  • Amazon Business Strategy: Amazon's Competitive Advantage

    1115 Words  | 3 Pages

    Also, Amazon sells many products from many different brands and companies. The customers are most important to Amazon and Amazon knows that the delivery service is one thing that customers want the most. The way that Amazon fulfills the customer’s satisfaction of its delivery service is by having 55 fulfillment centers located in North America. Because fulfillment centers are not retail stores, Amazon products aren’t required to charge sale taxes. Along with the 53 fulfillment centers that Amazon has in North America, Amazon also has 53 distribution centers in Europe, Japan, Asia and India. Since Amazon has a lot of warehouses in many different locations, it can reach to its customers more conveniently. Amazon has been growing throughout the years has allowed its company to be able to reduce its costs. Besides being one of the top online shopping sites, Amazon has also developed the Kindle, which is now one of the most popular e-reader tablets out

    Read More

  • Amazon Business Process

    690 Words  | 2 Pages

    Emphasizing on customer centricity, Amazon optimizes all of their processes to make it easier for the customer to decide and buy the product, and to make it as cheap to the customers’ as possible.

    Read More

  • History and Success of Amazon Inc.

    766 Words  | 2 Pages

    Amazon.com, Inc Company started in 1994 and featured online in 1995. The company has done extremely well in the market achieving remarkable success. Initially, Amazon was known as Cadabra. Inc. however, the name of the company changes when the owners of the company knew that people confused the name for cadaver. Jeff Bezos is credited for founding the company. The company has its base in the United States of America as a multinational e-commerce company. Its headquarters are in Seattle, Washington. It has been rated as the largest online retailing company, in the entire world. It has close to three times the sales revenue that staples, Inc made as a runner up, in January 2010 (Shire, 2008).

    Read More

  • Amazon Creates Value for Customers

    1964 Words  | 4 Pages

    Amazon.com creates value for its customers by offering customers broad array of products to select from through their website and ensuring timely delivery of products to exhibit high level of commitment towards their business and customers

    Read More

  • Toys Inc Case Study

    1020 Words  | 3 Pages

    As a consultant for Toys, Inc., I have been called in for my advice by the company’s president, Marybeth Corbella; on which of the two proposed options would be best for the company and for the customers as well. Toys, Inc. is a 20-year-old company that produces toys and board games, our company has a reputation built on quality and innovation. Although we have been the market leader in our field, the sales have become stagnant in recent years, and sales have begun to decline when comparing them to the sales in the past. With the company’s managers attributing the decline of sales on the economy, the company was forced to reduce production costs and layoffs in the design and product development departments; this action will hopefully increase

    Read More

  • Amazon.Com Case

    963 Words  | 2 Pages

    When Amazon.com first began in 1995, as strictly a book retailer, Bezos knew he had discovered an excellent company. After all, a physical bookstore cannot stock anywhere close to the number of books Amazon can offer online. Within a year, the company had a customer base of approximately 340,000 consumers and daily site visits were huge as well. But Bezos wanted to expand the company to offer music and DVDs, because he realized there was little or no barrier of entry. In the next years Amazon would emerge as a marketplace, expanding the company globally offering products from toys to kitchenware. Because of the relatively cheap prices Amazon was offering and also the growing number of online shoppers, the company was doing tremendous amounts of sales and creating profits.

    Read More

  • Walmart And Amazon Case Study

    721 Words  | 2 Pages

    Another part of Amazon’s retail strategy is to serve as the channel for other retailers to sell their products and take a percentage of cut of every purchase. Amazon does not have to maintain inventory on slower-selling products. This strategy has made Amazon a ‘long tail’ leading retailer, expanding its available selection without a corresponding increase in overhead costs.

    Read More

  • Mattel

    532 Words  | 2 Pages

    Answer: The following are the number of problems that had stymied Barad’s strategies: l     Parents were buying fewer toys and shifting their spending to computer software and video games for their children; l    Parents were shifting the spending to competing dolls such as Pleasant Company’s highly successful line of American Girl If Barad had awareness of the external threat that computers were becoming more popular with families, which parents might use to entertain and educate their children and the lack of creativity in recent toys, her planning might have more consideration on innovative products. The same situation applies to the competition with video games, the unpopularity of Disney’s movies related toys, and the weakness that Mattel’s revenue highly depends on Barbie dolls. 3) Could better decision-making techniques have helped Barad avoid the decline in sales of Holiday Barbie? Answer:

    Read More

  • What Is The Cross Elasticity Of Demand

    1300 Words  | 3 Pages

    This shows that the two companies’ sports cars are strong substitutes for each other as more people purchased the cheaper one. By decreasing the price $3, Walmart was able to take 10,000 sales from Toys R Us. If it was a poor substitute, this price change would not have had such a large impact on the quantity sold.

    Read More

  • Amazon.com and Management Information System

    1247 Words  | 3 Pages

    Amazon model initially offered customers access to massive selection without the needs to incur cost, time and stress of opening warehouses and stores and the needs for inventory handling. Amazon realized to ensure customers get a pleasant experience and Amazon acquire its inventory at reasonable prices, they need to be in control of the transaction process from beginning to the end through operating the business from their own warehouses.

    Read More

More about Toys R Us

Open Document