Question

1. Identify and discuss the key macro and micro environmental factors affecting TOYS R US Company. How has the company responded to these challenges?

Answer 1

Answer

Following are the factors which affect the company to decline .

Micro environmental challenges

1. The Toys R Us were reliant on ranges which were broad and the toy choices in the store were costly to maintain
2. The business model of the company required a large space for retail and more staffing is needed which was expensive
3. There was evolving competitors who were specialized like digital PC apps and games
4. The kids of the country were watching less Television and the advertisement
5. Lot of choices of Kid like social media and online video streaming websites  etc

Macro environmental challenges

1. Lot of choices in toys for kids like gaming
2. High level of debt facing by the company
3. In 1998 , due to many stores in US A market , wallmart became number 1 toy seller
4. The discounting made by wallmart targetted the customers and win the traffic making the company to decline
5. The investor were the financial owner of retail chain , they were not actually retail experts

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