Competitions and obstacles – coursefighter.com
Business Finance – coursefighter.com
Hello, kindly what I’d like you to help me with is putting this paragraph in a clear points that I can put in a PowerPoint project. Make them shortly and clear please.
Toys R us faced competitions from Walmart and other department stores. The kids changed and started spending more time on digital games, and the shopping transformed from actual shopping into online shopping which is another thing that Toys r us lacks, on the other hand, Amazon Walmart, and Target were active online. The physical toys industry was suffering in sales because of the digital games, and a lot of independent toys stores have been closing because of that. Toys r us had serial mismanagement issues the stores were overlarge,very poorly merchandised and full of inventory. There was no effort from their side to re-image themselves. Also, they couldn’t improve their performance. They should’ve changed based on the change in the market, but they didn’t.
As a result, In 2017 Toys R us hired a law firm for corporate restructuring. In 2018Toys r us filed for bankruptcy. On March 2018 Toys R us informed the employees that they are going to liquidate and close the stores. They announced the closing of the last Toys r us store in June 2018. Sadly the founder of the company died in the same year. This is a living proof of the fact that bad management and poor cost management could cost the business everything. It also shows the importance of developing the business and keep up with the new technologies available. In addition, it shows that business models should take into consideration all the factors. The fact that the business model worked effectively in the past it doesn’t necessary means that it’s going to work in the present time.
In conclusion,There are a lot of lessons to learn from what happened with Toys R us. The most important lesson is to be updated with the market trend. Study the market and use all the tools to analyze the business plan in order to make the right decision. Also, keeping in mind the fact that a risk management plan is an essential part of the planning to keep the business safe and to overcome the obstacles that the business could face.