SWOT Analysis : Toys R Us | Assignment

SWOT Analysis

SWOT Analysis 1
Introduction
The main purpose of this report is to understand the concept of “SWOT Analysis”. In this
paper, the SWOT Analysis will be done to examine the business strength and weakness of the
business. Toys R Us has been taken into consideration to implement the SWOT Analysis. Toys
R Us is toy manufacturing company which is well known to have fun (Toys R Us, 2019).
SWOT Analysis
SWOT Analysis is a strategic planning technique that can be used to help the company to
analyze the strength, weaknesses, opportunities and threat. This analysis helps the company to
beat the competitors. It is the decision making process that can be used to evaluate the strategic
position of the company in the industry (Gürel, & Tat, 2017). This strategic management tool
helps to analyze the external and internal factors that are favorable and unfavorable to attain the
objective. This strategic tool assists to gain the competitive advantage in the market. SWOT
Analysis has been classified in two categories such as external and internal factors. External
factor includes the strength and weaknesses and internal factor includes the opportunity and
threat (Mind Tools, 2019).
Strength: Strength defines the characteristics of business which is beneficial for the company to
operate the business (Ansoff, et. al, 2018). There are many factors that help the company to gain
the competitive advantage in the market and these are:
Champion: It has been analyzed that the company provides the several of toys due to which it
has high brand image in the market. Game toys and education toys are the core products of the
company that helps it to grasp the market share (Toys R Us, 2019).

SWOT Analysis 2
Stores: Toys R Us provides the goods to the consumers directly without taking time as it has
offered the goods through their stores. It was one of the iconic stores in the nation as the kids
grow with those toys. Iconic stores are the main strength of the company that helps it to drive the
business.
Satisfaction of consumers: It is observed that the company provides the direct selling services to
consumers. Direct selling services helps the company to satisfy the consumers by addressing
their queries face to face.
Weaknesses: Weaknesses defines the characteristics of the business that affects the business in
the negative terms. There are many reasons due to which Toys R Us closed the business. It is
essential for the company to focus on these areas so that it can improve the business and operate
effectively. The weakness factors of Toys R Us are as given below:
Financial position: It has been analyzed that the financial position of Toys R Us is not good as it
has less opportunity to raise the capital. The company does not have the ability to operate the
business just because of less finance to pay the expenditure. It is found that the company gets
closed due to bankruptcy and closure. The company has huge debt $5 billion which is not able to
cover and get bankruptcy (Lieber, 2018).
Lack of online retailing: It has been noticed that the company does not operate the business
through online. The company does not provide the goods to consumers through online due to
which the sales have been decreases and it is also a reason of closing the company. Lack of
online presence is also a weakness for the company.
Opportunity: Opportunity is the external factors that help the organization to achieve the
success. It has been seen that Toys R Us have less number of opportunities to operate the