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Essay / Research Paper Abstract
A 5 page paper. Using sources supplied by the student, the writer responds to four questions about the toy industry. First, what is the toy industry facing right now with the possibility of Toys "R" Us closing. Second, what distribution issues would toy manufacturers face without this toy superstore. Third, what alternative distribution channels might toy companies use. Four, are there any advantages for consumers with the alternative channels. Bibliography lists 3 sources.
Page Count:
5 pages (~225 words per page)
File: MM12_PGtoyind.rtf
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Unformatted sample text from the term paper:
of size, Wal-Mart, Toys "R" Us and Target (Brown, 2004). Their market shares are 22 percent, 16 percent and 10 percent, respectively (Brown, 2004). As unbelievable as it sounds, net
earnings for Toys "R" Us plummeted from $229 in 2002 to $88 million in 2003 (Brown, 2004). Its stock dropped by 61 percent in that same year (Brown, 2004). The
potential fallout if Toys "R" Us closes is severe (Brown, 2004). Margaret B. Whitfield, an analyst at Ryan Beck & Company, said: It puts a pall over the whole group,
having lost so many distribution channels, and being unsure what will happen" (Brown, 2004, p. 3). And, John Walter Lee II, founder of Learning Curve International, commented: I think you
lose the most important showcase for a wide variety of toys, a much wider mix of business than a Target or a Wal-Mart would ever get into" (Brown, 2004, p.
3). Considering the fact that just two of the largest toy manufacturers, Mattel and Hasbro each obtain 16 percent of their annual sales from Toys "R" Us, one can
speculate that the closing of this major toy store could have a devastating effect on the toy industry, in general. It is only at this store that toy manufacturers can
have their entire line of product on shelves in one place (Brown, 2004). Besides the potential damage to existing toys, such an event would make it very difficult to
introduce new toys to the market (Brown, 2004). As many businesses have found and what Toys "R" Us has been struggling against for years is that Wal-Mart uses loss leaders
often to increase its business. A loss leader is a product priced so low that the store loses money on it. The purpose is to entice customers into the store
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