Professional Documents
Culture Documents
https://www.cnbc.com/2019/01/26/toys-r-us-built-a-kingdom-and-the-worlds-biggest-toy-store-then-they-
lost-it.html (CNBC Article → Useful to get general Idea)
● Culture
○ Problem 1: demand for physical toys has decreased, because of electronic devices and
digital games.
■ IBIS World. From 2012 to 2017 → toy industry declined 3.7% annually
○ Problem 2: The complex and unorganized structure of Toy R Us stores.
Solutions:
<Problem 1: `Increase the demand for physical toys with in the increase of electronic devices and digital
game>
1. Development of products related to animation
ex) Turning MeCard
2. Attach the Codes that can be used to buy rare items in games on toys.
ex) Sell toys that have shapes of items in game → Items can be used online when bought
3. Sell toys for adults. Make products based on animations or characters the adults liked. Products
designed to be easily carried and quantity limit increase the demand.
ex) 세일러문, 원피스 들
4. Develop toys that are not only for children but real life products that are related to animations.
ex) 텀블러, 지갑, 핸드폰 케이스, 액세서리 등
5. The modern trend towards luxurious items would be a good target for many parents.
Differentiating Toys R Us with local toy market by controlling the supply, thereby making toys
artificially expensive and scarce, would increase demands for children as it gives a sense of
speciality. For example, some special edition of Japanese figures (피규어) are very costly and
and yet they have high demands from the loyal collectors, as they are supposedly “distinct” from
other local products.
ex) Limited Edition, special leather/golden plated Buzz Lightyear.
<Problem 3: “While successful retailers lure customers to their doors by providing unique
Experience s, Toys R Us did not invest in implementing appropriate enhancements. Physical shopping
experience has become bland..”>
1. Create a Toys-R-Us landmark, similar to that of Legoland or Hershey’s chocolate world. A theme
park that features variety of attractions for entertainment purposes, both indoors and outdoors.
This would attract families looking for a great day out, or a short break experience.
ex) Toy shows, DIY toy building workshop, toy ride, 4D cinema experiences, meeting with real life toy
character (actor), etc.
2. In every shop, have an ‘Infinite Toy Zone’ where kids can try any toy they want for a period of
time. Similar to kids cafe, it is an indoor playground filled with wonderous toys to entertain
children for hours. Children will get to try the toys before buying them, and this will encourage
them to buy the toy of their choice as children gain interest while interacting with the toys.
● Modernization
○ Lacking E-Commerce https://www.toysrus.com/ (Website for internet shopping)
○ Problem 1: No advantages and incentives over Amazon or E-Commerce websites --
critical issues in the infrastructure prevents strong customer service (no up-to-date
statuses on stocks)
○ Problem 2: Local Toy companies’ capability to attract the customers are the huge factors
that prevents ToysRus from increasing output.
Solutions:
1. 다음 & 네이버 접속자 수 로 이익을 낸다. 네이버의 접속하는 수 가 많을 수록, 광고를 더
많이 보낸다. 그래서 광고 회사들한테 말해서 광고를 더 하게끔 promote한다.
a. 접속수를 늘리는게 관건!!
i. 중고 장난감 거래 장터 (물물교환)
ii. 물건을 사는 사람만 방문하게 되면 방문자가 몇명 안된다
iii. 온라인 중고 장터 구경하면서 다른 사람이 파는 장난감도 저절로 보게
된다 (카카오가 단순히 카카오톡만 하는게 아니라 카카오 택시, 뱅크등
컨텐츠를 늘리기)
iv. 광고료의 수익 (광고회사들이 더 advertise 할것이다 )
b. 온라인 상담 창고 (Counselling) -- (이유가 있어야 한다)
Possible Solutions (Modernization)
Business Report
In order to continue this business, people have to come to the actual toy store. The toy store need to put an
interest that ToysRus is not a just place to buy toys, it's a place to have fun and socializing places.
Increasing number of visitors
○ Make an Experience Center (체험장)
○ 자기가 산 장난감과 연결된 VR 테마가 여러개 있어서 바로 체험 가능
○ 장난감이 완성품만 있는것은 아니다
■ 체험장에서 직접 장난감 조립과 놀 수 있는 공간 마련
○ 부모들이 편히 쉴 수 있는 카페를 만든다
● 새로운 타입의 장난감 개발
○ 부모와 아이들이 여러번 장난감 매점에 와서 만들 수 있는 장난감 개발
■ 사람들의 방문 횟수를 늘리자
● Finance
Business Report
○ Problem: The debt for purchasing the company by the trio is double the company’s net
profits
○ The company sold for $6.6 billion while the trio financed $1.3 billion and the company
was previously $1 billion in debt, making it $6.3 billion debt in total
Solutions:
1. 구조조정
a. 해외지사들중 수입이 낮은 매장 순서대로 폐장 시킴
b. Toysrus is a multinational corporation (MNC) headquartered in U.S.
c. If shops that are expected to raise less money in short term than the money earned from
selling those shops, it is the best way to shut those shops down in order to pay debts.
d. As the debt is reduced, less money will be spent on interest. In other words, the company
will be able to earn more profit.
e. It is one of the strategies that many U.S companies previously used.
i. Example: “Ford reduced its stamping supply base from 150 suppliers to 11. Of
those 11, 7 are minority owned, supporting Ford’s supplier diversity efforts.”
목적: Toysrus 는 정보화 시대에 있어서 자신들의 독자적인 플랫폼과 솔루션 구축을 하지
못했다. 그로 인해서 변하는 시대에 마케팅 등을 외부업체에 의존하면서 독자적인 기술 개발에
실패하였다.
Business Report
Industry Analysis
Marketing
Marketing was
Finance
Long-Term Development