Toys and Games industry
1.0 Introduction
Toys R Us is one of UK’s leading toy and game retailer. This report conducts an academic research focus on Toys R Us (UK) in toys and games retailing sector. In the first part of this report, we will discuss the toys and games industry background and the overview of Toys R Us. Then, the research will focus on Poster’s Five Force Model and Porter’s Generic Strategies. In the next parts, this report will concentrated on the potential strategies which Toys R Us might pursue in the future. Conclusion and recommendation will be mention in the final part of this report and the recommendation will be covered the best strategy for Toys R Us which can be used for the future competitiveness.
1.1 Industry Background
After the decline in 2008 and 2009, the toys and games market has grown about 5% just under £2.2 billion. The market has opportunities to increase the sale revenue from 2010 to 2015 (MINTEL 2010). The Figure 1 shows UK retail value sales of toys and games between 2005 and 2015.
(Figure 1, Source from: MINTEL Report 2010)
According to MINTEL 2010, the main players in the toys and games industry in UK is Argos, Toys R Us, Disney and some internet specialists such as Amazon and Ebay. The Figure 2 shows the retail market share for those main players.
(Figure 2, Source from: MINTEL Report 2010)
1.2 Company overview
Toys R Us is UK’s leading traditional toys and games retailer with over 1500 stores and 71,000 employees (including part-time employees) in 33 countries and the company’s headquartered in Wayne (DATAMONITOR 2011). Toys R Us offer Toys, Baby care, Video games, Multimedia PCs, Bikes and outdoor fun products (Toys R Us 2013).
2.0 Poster’s Five Force Model
2.1 The threat of new entrants
According to Dess, Lumpkin and Eisner 2010, the threat of new entrants is depends on the level of entry barriers.
In the UK toys and games industry, there are strong competitions for the pricing. According to MINTEL 2010, since
Toys R Us is one of UK’s leading toy and game retailer. This report conducts an academic research focus on Toys R Us (UK) in toys and games retailing sector. In the first part of this report, we will discuss the toys and games industry background and the overview of Toys R Us. Then, the research will focus on Poster’s Five Force Model and Porter’s Generic Strategies. In the next parts, this report will concentrated on the potential strategies which Toys R Us might pursue in the future. Conclusion and recommendation will be mention in the final part of this report and the recommendation will be covered the best strategy for Toys R Us which can be used for the future competitiveness.
1.1 Industry Background
After the decline in 2008 and 2009, the toys and games market has grown about 5% just under £2.2 billion. The market has opportunities to increase the sale revenue from 2010 to 2015 (MINTEL 2010). The Figure 1 shows UK retail value sales of toys and games between 2005 and 2015.
(Figure 1, Source from: MINTEL Report 2010)
According to MINTEL 2010, the main players in the toys and games industry in UK is Argos, Toys R Us, Disney and some internet specialists such as Amazon and Ebay. The Figure 2 shows the retail market share for those main players.
(Figure 2, Source from: MINTEL Report 2010)
1.2 Company overview
Toys R Us is UK’s leading traditional toys and games retailer with over 1500 stores and 71,000 employees (including part-time employees) in 33 countries and the company’s headquartered in Wayne (DATAMONITOR 2011). Toys R Us offer Toys, Baby care, Video games, Multimedia PCs, Bikes and outdoor fun products (Toys R Us 2013).
2.0 Poster’s Five Force Model
2.1 The threat of new entrants
According to Dess, Lumpkin and Eisner 2010, the threat of new entrants is depends on the level of entry barriers.
In the UK toys and games industry, there are strong competitions for the pricing. According to MINTEL 2010, since