Understanding Business, 10th Edition

Published by McGraw-Hill Education
ISBN 10: 007352459X
ISBN 13: 978-0-07352-459-7

Chapter 7 - Management and Leadership - Taking it to the Net - Page 201: 1

Answer

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Work Step by Step

Strengths: The number of retail locations Toys R Us (and their associated brand, Baby's R Us) have; its presence on the web is another strength; its web and distribution network is a strength; it has quite a bit of shelf space, which improves its negotiating position. Threats: differentiating its brand from other toy retailers, like Walmart; the competition for business with retailers like Walmart and Target; the company sells quite a few different kinds of products, which may make customers confused. Weaknesses: the potential of not profiting as much as they should during the Christmas season, which is a season that makes or break their profitability for the year; Toys R Us has no sustainable competitive advantage, other than its brand. Opportunities: the ability of the company to form strategic partnerships (with Amazon, for example); the company's philanthropic efforts; the international market is another opportunity for the company. The full SWOT analysis can be found at https://www.marketingteacher.com/toys-r-us-swot/.
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