The Toyland Dilemma

Paper Summary:

This paper takes a look at how Wal-Mart has outpaced Toys 'R Us in toy sales and has become the number one toy seller. This paper supports the thesis that, although Wal-Mart is the number one toy distribution channel, manufacturers should support other retailers by offering products that they do not sell to Wal-Mart.

Outline:
Situation Analysis
Challenges
Alternatives
Customer Advantages

From the Paper:

"Of these alternatives, the best seems to be to increase current alternative distribution channels other than Wal-Mart, particularly with new products. This will entice customers to try out these new venues. Wal-Mart represents a major marketshare, but they are still small compared to other distribution channels. Diversity spreads the risk over a large area so that if a loss does occur, it is minimized in scope. It would cost little to establish other smaller distribution channels as compared to the cost of building and establishing their own retail establishment. New channels often cost more than increasing the use of established ones. "

Sample of Sources Used:

• Brown, Eryn (2004, Sep. 12) "Imagining Toyland Without One of Its Giants," New York Times, pg. 3, 5.
• Freeman, R. (2003). Wal-Mart 'Eats' More US Manufacturers. November 28, 2003. Executive Intelligence Review.
• Pride, W. and Ferrell, O. (2003). Marketing. Twelfth Edition. Houghton Mifflin Publishers.
• Salter, C. (2004), They're Not Playing Around. Shopping Spree. December 2004. 89:31.
• Tamilia, Robert D. (1999) The Logistics Revolution: Is Logistics Management Now more important than Marketing?, Montreal, Canada.

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