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
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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
I agree with court’s decision to dismiss Ms. Marder’s grievance against Paramount. Ms. Marder made a contract with Paramount and sold away the rights to her story. The contract between Ms.Marder and Paramount was legal and binding; the courts could not favor her. Paramount became the legal own of Ms. Marder’s story at the time of its purchase; the price they paid for her story, although quite small, was the amount she had agreed to.
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage
Wal-Mart and Target are both great retail stores to go and find a good bang for your buck shopping experience. After researching both companies, it appears they have the same ideas as a mission, saving the customer money. Wal-Mart Mission statement reads;
Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.
Both Amazon and Walmart are seeking to accomplish the same goal, to become the world’s largest retailer by providing customers with a seamless shopping experience. Both companies have their own strengths, with Amazon being the leader in the online retail space, while Walmart is the clear leader in the brick-and-mortar arena. As more online and brick-and-mortar retailers are eating into the market, both Amazon and Walmart must content with other companies as well as each other. Amazon and Walmart were both created and detonated extraordinary growth due to an innovative push unlike any other in their own respective arenas. “If either Amazon or Walmart is destined to come out on top, it must come from a massive innovation push, a willingness to
The Court ruled in favor of the appellant, and the decision is described as follows:
an explanation of why and how each decision was made throughout the entire trial. The basis
Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.
To properly understand the events a chronological descripcion of the litigation is to be provided.
What did the appellate court rule? Did it agree with the trial court (affirm) or disagree (reverse)?
The company hired a law firm named Kirkland and Ellis to handle their case because they have expertise in Chapter 11 bankruptcy proceedings. The company will be reorganizing its $400 million-dollar debt. (Wahba p. 1) Toy R Us was involved in an antitrust settle with attorney generals from 43 different states. The company conspired with a couple of toy manufacturers to restrict the supply of desirable toys to warehouses and price clubs. Toys R Us was aiming to put these other warehouses at a competitive disadvantage (Mikhiber, p. 29). According to the Federal Trade Commission “the company had monopoly power in many local markets and used its dominant position as a toy distributor to extract agreements from and among toy manufactures to stop selling to warehouse clubs the same toys that they sold to other toy distributors” (Investor’s Business Daily, p. 1)
Simply put resting at a conclusion after a negotiation may not necessarily be the ideal outcome unless cooperative is achieved by both parties. Bargaining in general could involve parents, friends, teachers, spouses, employers, and so on (Anderson, 2013). Likewise companies also negotiation contracts with one another or individuals involved within the companies.
Both our approaches were directed towards addressing the issues with a collaborative spirit for the greatest benefit to both sides. We agreed that both sides wanted to establish a long term a relationship with each other and were willing to give genuine consideration to each other’s particular needs and interests. This experience has enabled me to reflect on my personal approach towards negotiation, as well as analyze my strengths and potential areas for improvement as a negotiator.
Through studying the entire retail toy industry, we have been able to understand the complexity of the industry in which Toys "R" Us operates. Upon completion of the analysis, we realized that the industry is growing stably,
Conclusion: The entry of Toys “R” Us would shake the traditional Japanese toy business, however the cracks appearing in the retail structure points towards the need for transformation in the Japanese market. Hence Toys “R” Us potentially is a good prospect for the Japanese markets.