Case Studies

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What are the key successes factors of Toys “R” Us in toy industry?

Answer. There are many key success factors that tops Toys “R” Us in the toy industry from quality to value, from diversification to market penetration in the market, from customer orientation to low cost leadership. These all factors contribute to the success of this company in the toy industry.

These factors are to be discussed and they are as follows:

In concept the main and the most foremost factors that contribute to the success of any corporation/organization is its power of making decision at the right time at the right moment in the business. Being financial stable does contribute but the main part resides in the decision making that is management. Having a stable and strong infrastructure gives a corporation a base to build its firm foundation with roots extended in various directions.

Secondly, they cater all segments of society. The wealthiest to the least well off, all come to get toys under the same roof, which makes it the well known and the more success of all. Purchasing raw materials and outsourcing in off-season is giving competitor advantage of low cost leadership and passing this advantage to its customers through discount pricing in seasonal sales on Christmas and other events round the year.

They give their customers the respect one needs and satisfy them with all they have in hand. With the scope of customer orientation, the company is giving its customers the control in which direction the company should go to cater its customers. Toys “R” Us is changing according to the preferences of its customers to satisfy them and also have a liberal return policy which give them an extra and is another edge on its competitive advantage over its competitors.

The financial flow of money is forecasted in advance to get the know how of how the business is doing. What are the flaws to be handled and what is to be foreseen in future for the decisions made today. This is main cause what makes them unbelievable out their and more positive about their strong position in the market.

Being a market leader is not a big thing maintaining it takes a lot of effort. The availability of stock on time adds extra value to it. For availability, there should be well stocked and well maintained inventory. And that’s what this company has. They know what is to be purchased and when. Where it is unavailable and where it is not. Customers don’t get satisfied if they don’t get what they need on a particular time which is apparently, in this case has been foreseen and is readily available.

Another thing that makes it worthwhile, and that is its diversification into different dimensions that is related diversification and unrelated diversification of the company into different businesses. Catering all category and segment of life, making all to walk down the aisle once is a give step towards a strong basis of customer needs and wants to develop a better business and a better company which survived and named by millions of people after a long period of time.

In my opinion, these were the main key success factors that can be listed out and that makes the company outstanding and yet strong and firm in its industry and gives a tough time to its competitors’ that are competing it.

1. Draw SWOT matrix and determine the strategic direction for the company.

|Strengths |Weaknesses | | | | |Good infrastructure. |Do not have national and global stores. | | | | |Year round sales. |Dependency on...
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