=>Question no: 01 SWOT Analysis Toys “R” US.

Strengths.
 Toys "R" Us has in excess of 1500 superstores in the United States and
Worldwide. It also owns the baby brand, Babies R Us which adds
another 200 + stores. Toys "R" Us also markets successfully on the
Web (in collaboration with Amazon.com). It has a huge distribution
network that benefits from advanced logistical systems. Having so
much shelf space means that the company has a strong bargaining
position when it comes to buying prices from manufacturers. It turned
over more than $11 billion in 2005.

Threats.
 There is strong competitive rivalry in the toy market, not only form
Wal-Mart, but also from KB Toys and Target. The toy brand is often
not associated with the retailer. So if a particular kid’s toy has grabbed
the imagination and the spending power of its target consumer, any
retail outlet is as good as another. Differentiation is difficult, and toy
retailers often have to compete on price, range or availability.
Let’s face it today China and similar low cost manufacturing paradises are
where toys are made. Low manufacturing costs are important if margins are to
be retained. The problem, and potential weakness, is that countries and trading
communities tend to impose quotas and tariffs in order to protect local
manufacturing. All countries do it. However, Toy R Us could potentially be left
without the toys people want to buy if embargoes are implemented on countries
such as China.
In 1948, at the young age of 25, Charles Lazarus began a business totally
dedicated to kids and their needs just in time for the post-war baby boom era.
He had no idea that his first baby furniture store in Washington D.C., would
evolve into an $11 billion dollar business with approximately 1,500 stores
worldwide.
Weakness
 These days, Toys “R” Us has no single and sustainable competitive
advantage, other than brand. In the US, its traditional stronghold, the
company has lost its number one positions as toy retailer to Wal-Mart.
Being large may not be enough when customers can go to another
large retailer and buy the same and similar goods, sometimes getting a
better deal.
 As with all retailers in Western society, Toys “R” Us is heavily
dependent upon successful sales during the final quarter of the year.
They need to make profit from Christmas. Retail is notoriously
seasonal and Toys “R” Us is no different to other retailers. In fact it
could be argued that toys are a key Christmas present product, so are
even more likely to be dependent upon seasonal sales.

Opportunities.
 There are opportunities for joint ventures and strategic alliances. Toys
"R" Us works closely with Amazon.com and its baby products
category. This not only plays to the strengths of both companies, but
also provides opportunities. Amazon is strong at the online part of the
business, creating the web site, warehousing products and delivering
them to customers. Toys "R" Us will use its buying power, but
ultimately carries the inventory risk (i.e. if it doesn’t sell, its money is
tied up in physical stock).
Toys "R" Us is a good neighbor. For example, in 2005 it went out of its way to
help the Louisiana victims of hurricane Katrina. Toys "R" Us donated six trucks
full of toys and baby supplies including diapers, wipes, and formula, as well as
batteries and water to multiple locations that were housing evacuees. Babies "R"
Us has also donated over 17 pallets of baby and children’s clothing to the
national charity Kids in Distressed Situations (KIDS). Such associations will
help to sustain its brand with key consumers.
As with many of the brands considered by MarektingTeacher.com’s FREE
SWOT analyses, the International market is very important to Toys "R" Us. The
citizens of emerging nations such as China and India are getting wealthier and
better educated. Consumers have more disposable income and leisure time, and
both of these could increase over coming years. The types of goods and services
retailed by the company could be marketed more aggressively overseas. Toys
"R" Us could look out for strategic partners, or indeed go it alone.
=>Question No:02 Analyze Toys "R" Us weaknesses. How do you
think the company's strengths might be used to overcome some of its
weaknesses?

 (Analysis of Toys "R" Us weakness)

As we know that "Toys R Us" is a large distributor in the world but
unfortunately it has lost its position because of its rivalry & competitors.
Even they are not going for big deals as compared to other competitors
like Wall - Mart, KB Toys & many more.
Weakness are the basic areas where "Toys R Us" can improve upon.
Toys "R" Us financial planning is not done properly & efficiently. The
current ratio suggest that company can use the cash more efficiently
then what it is doing as present.
Toys "R" Us has a higher attrition rate and have to spend a lot more
compare to its competitors on training & development of its employees.

How do you think the company's strengths might be overcome some

of its weaknesses?

Toys "R" us can overcome some weaknesses through following

strengths.
The Toys "R" us brand must be associated with retailers with some
beneficial deals for customers and can give them some discounts
according to range wise purchases.
Toys "R" us can also market with OLX, Ali Baba & other global online
websites to make their brand globally recognized & can sell their
products widely.
=>Question No:03 Analyze Toys "R" Us opportunities & Threats.
What additional opportunities can you suggest? What additional
threats can you identify?

 (Analysis of Toys "R" US opportunities)*

Over the past few years the company has invested vast sum of money into
the online platform. This investment has opened new sales channels for
Toys "R" us. In the next few years the company can leverage this
opportunity by knowing its customers better & serving their needs using
data analysis.
New trend in the consumer behavior can open up new markets for the Toys
"R" us.
It provides a great opportunity for the organization to build new revenue
streams & diversify new product categories too.

*(Analysis of Toys "R"us threats)*

Coming to the analysis for threats, the Toys "R" us can face legal action in
various market given different laws & continuous fluctuations regarding
products in those markets.
Shortage of skilled workforce in certain global market represents a threat to
steady growth for profit for Toys "R" us in those markets.

 Additional Opportunities
The Toys "R" US CN go with different approaches, like they can switch its
focus to smaller stores that will feature interactive toy demonstrations,
spaces for special events like birthday parties, new activities every day &
open play areas.
They can also make a deals by producing different products for child’s.
Consumers will have the opportunity to play with toys displayed out of the
box before potentially purchasing them.
The company believes that this immersive experience will help it track
patterns and measures how in-store retail experiences effect online sales.
(Additional Threats)
China being a most populated country in the world covering its own country
and other neighbor’s countries by supplying more & more toys at the
cheapest rate can have a big threat for Toys "R" us & may have a loss for
it, because China is mainly dealing with retailers and supplying similar toys
globally as compared to Toys "R" us.