Toys R Us

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Toys R Us The purpose of this report is to research and examine Toys "R" Us, the world's largiest toy chain store, so as to provide the company with strategic recommendations for future success. To throughly understand the company, the analysis is divided into multiple focus points: industry analysis, firm strategy analysis and firm financial analysis. The analysis concludes with rating that we give the company's stock as well as our strategic recommendations for the company to increase it's overall preformance. 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, in both size and dollar vallue, and has reached a mature market stage. In order to lead to future success, companies in this industry have no choice but to compete on new technology, innovation, cost, and global expansion. The financial analysis provides the information on the company's financial data in operations. Based on the research, we are able to conclude that Toys "R" Us is a fundamentally strong firm in the industry, and the top toy retailer around the global. In the past five decades, the company has hardly experienced any serious financial difficulties; and it's been growing steadily in terms of both market share and market value. Based on the analysis, we are trying to provide Toys "R" Us with some specific recommendations, which include further expansion of operations and distribution channels, taking advantage of the internet age. Part I Introduction History Returning from a stint in the Army, 25-year-old Charles Lazarus entered retailing in 1948, adding his $2,000 savi... ... middle of paper ... ...Us we would not currently recommend investing in this company. Toys R Us is currently going through a transition phase, where they are changing management, opening and closing stores, and trying to reduce their overall debt. Although the company is currently going through hard times they have made significant strides to increase their business. In 1999 Toys R Us announced a strategic initiatives to reposition it's worldwide business. The cost to implement these initiatives, as well as other charges resulted in a total charge of $294 million to close and/or downsize stores, distribution centers and administrative functions. If an investor is currently long in Toys R Us we would not tell them to sell, but rather to hold the security because overall business is starting to look better. Within the next 3-5 years Toys R Us will once again be the industry leader.

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