Toys “R” Us in 1999

Case Solution

Karel Cool, Deidre Sorensen
INSEAD ()

In 1999, Toys R Us faced the most difficult moment in its history. After first posting losses in 1998, it lost its leadership position in toy retail to WalMart and made a late entry into electronic retail, where eToys beat the competition. How could TRU strengthen its competitive position and improve its profitability?

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