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    Toys "R" Us in 1999 (Portuguese Version)

    Cool, Karel ; Sorensen, Deidre

    Portuguese Portugal , Spanish

    • Reference: INSEAD-4896PT-PP

    • Year: 1999

    • Number of pages: 41

    • Publication Date: Jan 1, 2000

    • Source: INSEAD (France)

    • Type of Document: Case

    • Industry Setting: Toy Retailing

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    Description

    In 1999 Toys “R” Us faced the most challenging time of its history. After recording losses for the first time in 1998, it lost its number one position in toy retailing to Wal-Mart and was late in entering electronic retailing where eToys was pre-empting the competitive space. How would TRU be able to reaffirm its competitive position and improve its profitability?

    Learning Objective

    The case allows an analysis of the strategy of “commitment” / “category killer”; its sustainability; the threats and opportunities of e-commerce to established players; and the strategy/viability of the new e-commerce competitors.

    Keywords

    Category Killer Commitment Competitive advantage E-Commerce Industry Structure. Supply Chain Analysis