Industry factors that impact toys r us even though

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Industry Factors that Impact Toys R Us Even though Amazon can be blamed for the company's failure, many other factors made the company to be declared bankrupt (Garcia, 2017). Before the holidays, vendors and suppliers came up with stringent terms. In last year, around 20 retailers were declared bankrupt and their stores had to be closed. The fixed rates of interest in the industry were responsible for the sales and margin deterioration in the industry. The company also dangerously depended on holiday sales, and thus its retailers could not survive the shift in shop patterns (Garcia, 2017). Other
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STRATEGIC CONSULTING 6 analysts have indicated that there has been a change in in the economics of toy store retailing. Online sales have increased over the years because of companies like Amazon. Toys R Us Competitors Target Corporation This company is United States' second-largest discount chain after Wal-Mart. It focuses mainly on fashion and has more than 1800 outlets in Northern America. In addition, it engages in online sales and provides a credit card branded "Target Credit Card" which is only used in its stores. Wal-Mart The firm is the top retailer in the world regarding revenue and also the biggest in terms of workforce. It deals with general goods and has more than 5, 000 stores in the United States. Its shops and websites attract around 260 million consumers weekly. (“Hoovers”, 2017) Competitive Rivalry of the Market In the recent years, the toy industry has experienced major changes that have promoted competition. New channels have developed, and the technology is improving at a very fast rate. It is unfortunate the Toys R Us' response to such has not been effective. Channel shift has changed the economics of the industry. In 2016, more than 13% of all sales were done through online platforms, an improvement of about 7.2% (Thomison, 2016). Amazon is one of the biggest players that have emerged due to the online sales. Wal-Mart has also proved to be a worthy competitor by selling less costly goods and being convenient. Almost all children have turned to electronic gadgets. More than 60% of teenagers have tablets or smartphones
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STRATEGIC CONSULTING 7 (Thomison, 2016). This is a fast cycle market since the players can imitate what others are doing fast. Current Business-level Strategy Assessment The supermarket's format has played a major role in attracting customers to the firm. In addition, McDonald's restaurants have also been added to most of its stores. Currently, the company has many outlets that have combined Toys R Us and Babies R Us. To ensure that customers receive one-stop-shop services, the firm has transformed a significant part of its global store base to the side-by-side format which combines different types of products. Toys R Us has also made interior and exterior renovations in most of its locations. In addition, it has relocated most of its old outlets to places that have more demand.
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