Essay about Toys R Us vs. Amazon

1391 WordsDec 2, 20116 Pages
Toys R Us vs. Amazon.com Internet Commerce MAN223 Mary Crisp Instructor: Criddle Stevens-Henager College November 09, 2011 Abstract Topic: Answers Too In this paper, I will summarize the arguments between Toys R Us and Amazon.com. I will also summarize the rationale given by the judges for their decisions in this argument. 1. After a lengthy trial, the Court found that defendant Amazon.com had breached an agreement it had entered into with plaintiff ToysRUs.com LLC ("Toys R Us"), by permitting third parties to sell toys on Amazon's web site. Finding that this breach went to the substance of the parties' agreement - which as interpreted by the Court provided that Toys R Us was to be the sole third party toy retailer on…show more content…
They needed to structure the deal in such a way that both corporate boards and the executives, who set the philosophy, felt they each got what they wanted. The negotiators needed to define certain areas of the Agreement in such a way that both sides felt that they had accomplished their goals (Samson, 1997-2011). Conclusion In conclusion, I have shown what the argument was about and why the judge made the ruling, he did. Amazon.com entered an agreement and did not hold up their end of the agreement, because it would lock them into a ten-year agreement that they would assume would eventually cost them more than it would be worth. They should have set down and re-negotiated rather than breach the agreement. I would whole-hearted agree with the judges decision. 2. Advantages could have been that they never made Toys R Us to be the only third party to sell on there website and they could still have Toys R Us as a retailer selling on their site. Toys R Us sells more than $300 million worth of toys each year through the Amazon.com site. Amazon.com benefits from the network economic effect they obtain having toys available for sale on Amazon.com. Many small retailers purchase toys through Amazon.com and they could be still gaining a percentage of the sales. By paying attention to every process involved in buying, promoting, selling, and shipping consumer goods, and by working to improve process continually (Gary P

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