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Toy R Us Analysis: Five Forces.

Decent Essays
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
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It becomes too risky to reinvent new ideas before the company has reached its growth stage of the Life Cycle. The normal process is to reach maturity and then develop new ideas. Toyrus.com is staying within scope of the Life cycle; although they have the toy business mastered they are still trying to master the art of websites.

Social relevance is another factor that one can use to help analyze the attractiveness of the industry. Overall, any form of business done over the Internet is socially accepted because the Internet offers convenience as well as a time saver. The number one demographic group that frequents on-line toy stores is mothers of children. They know that when it comes Christmas time, what better way to save shopping time than to order the toys that kids want on the Internet. It is this mentality that raises the relevance and necessity for such a website. Society already gives acceptance to the Internet and to Toy "R" Us Inc., therefore Toyrus.com is also known to nearly all people within its industry on the Internet.

The degree of globalization is another factor that influences attractiveness. If a company entering an industry can also enter a global market, then it is attractive. Toysrus.com has businesses in other counties such as the United Kingdom, Germany and France. Etoys.com, their main rival, is not as globally present around the world, they only have a presence in
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