Toys R Us Essay
Toys R Us
It is an attractive industry from the incumbent’s perspective. The market as it is has no particular participant who enjoys the largest market share consistently such that getting a bit of the market share would be difficult and there is still energy among the consumers for a new player in the market. Many of them are still open to the presence of another industry player who may offer even more competitive prices that Wal-Mart.
The industry is anyone’s game at this point in time and the best player with the best of everything will get the biggest market share. 2) Describe and evaluate Eyler’s strategy for turning Toys’R’Us around. John Eyler’s business strategy was simple. He had noted that Toys ‘R’ Us had lower in-store stock levels than usual (stores consistently ran out of stock on 30 percent of its items) and also that the customers were unhappy with regards to the customer service at Toys ‘R’ Us (ranked tenth out of fifteen on such measures of service).
In response to these dilemmas, Eyler decided to stock the top 1,500 toys (which make up 66 percent of the chain’s sales) to eliminate low and empty inventory. He also enhanced customer service by remodeling the stores, introducing new merchandise and putting more focus on customer service, staff training and wage increases. Within the stores he specifically changed the product design into cul-de-sacs and increased the customer service attendants by four times.
A good business strategy addresses the needs of the customer, lays good ground work for the implementation of the strategy, makes us of genuine competencies and makes a contribution to competitive advantage. Customer need is the single biggest driver of a business strategy and therefore the strategy should endeavor to develop mechanisms that will satisfy the customer while at the same time keep the company profitable and maintain a larger market share than its competitors. Eyler did just that by implementing a number of predetermined measures geared towards satisfying customer needs.
Eyler successfully made use of the competencies he had and trained where there was need, remodeled the stores and increased customer service manpower; he understood the needs of the different groups and directly addressed the customer’s needs by implementing all the measures geared towards attracting customers and giving them an unforgettable experience at Toys ‘R’ Us. The second driver of business strategy is competence of the enterprise. Eyler evaluated the resources and capabilities available. He realized a need to educate the staff and the management, specifically for personnel hiring.
He was then successful in identifying a unique competence that made Toys ‘R’ Us different from its competitors. He had staff members at the stores occasionally wear a bright red shirt or a funny hat; this helped create the kind of environment that is attractive to customer. Although Eyler adopted a good business strategy, it lacked a key component. There was need for an active and aggressive advertisement to create awareness of the new changes and dispel the bad taste that many customers had developed. With the active advertisement it would have been easier and much faster to achieve the growth he hoped for.
University/College: University of Arkansas System
Type of paper: Thesis/Dissertation Chapter
Date: 6 May 2018