Problematic Business Models and Bankruptcy

1293 Words6 Pages
Battle of the Toys-FAO Schwartz is back! (Page 253-254)
1. Why did FAO Inc. have to declare bankruptcy?
FAO Inc. did not follow any model that would have save the organization from bankruptcy. It appears that FAO was disconnected to what was happening to the toy industry. The industry had gone global. FAO Inc. only had a brick-and-mortar business, meaning that FAO operated in a physical store with internet presence. Their competition like Wal-Mart and Target had a click -and-mortar business, which operated in a physical store as well on the internet. FAO Inc. failed to keep up with the management and marketing of the industry. There wasn’t a market strategy, market communication, or a market mix which caused KAO to bankrupt not
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Toys ‘R’ Us will need to find new ways to perform their processes in the store. This could something as simple as changing the checkout process, or being able to find the toys more easily and quickly, or even connecting with their customers to find out what would better their experience while visiting the store. This can be done by revisiting their current processes, redesigning the work flow between departments and listening to the needs of the various departments to be successful during the implementation process. Toys ‘R” Us may need to do some outsourcing for IT to get some new ideas or fresh eyes on this project to become efficient and effective. Ultimately I believe that all of the toys and other inventory that Toys “R” Us currently carries will be greatly reduced to target a more specific customer base and eliminate overhead cost and in return increase revenue. Your Average Book Store (page 195-196)
1. How has Amazon used technology to revamp the book-selling industry?
Amazon’s pure-play (virtual) business which operates on the internet only without a physical store has used the Wireless Fidelity (Wi-Fi) to revamp the book-selling industry which allows customers to connect to the World Wide Web to purchase all type of books such as: kindle e-books, new or used textbooks, audio books, and magazines. Amazon has created a home shopping network that allows customers to make purchases without leaving there home view
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