Toy R Us Analysis: Five Forces.

Essay by yoyotopUniversity, Bachelor's September 2004

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When people here the name Toys "R" Us, they think back to when they were kids of going into a store made with bricks and mortar and leaving with mom in one hand and the latest toy in other and a great big smile from cheek to cheek. As time passed the pressure for companies to enter the "clicks" of e-commerce became strong. In 1998 Toysrus.com, a subsidiary of Toys "R" Us opened in attempts to "be wherever our customers are, and that includes the Internet." Having a strong brand recognition, there were no doubts that Toy "R" Us could continue their successful tradition by holding on to their vision, which is to "put joy in kids' hearts and a smile on parents' faces", even on the on the Internet.

Being in the specialty online retail industry of toys and hobbies, firms within this industry must analyze various parameters that could influence their attractiveness in the market.

Once a firm understands their own specific industries environment, they can make strategies that will ultimately provide them with a competitive advantage to outperform their rivals. In order to understand the online toy retail industry, John Barbour, the CEO of Toyrus.com must look at the various factors that could influence the online toy store "titian".

The degree of competition within the industries looks at the external environment and the number of firms, size of firms and concentration in the industry. Some of Toysrus.com's competition within its industry of online toy retail includes Etoys.com, and Toysmart.com. When looking at some of the competition it's as though Toyrus.com is all alone. Toysmart.com despite being part of Disney Empire closed down after being in service for only one year. Etoys.com, which had snuk up on Toyrus.com became their main rival, but they suffered a large stock...