Toy Manufacturers and Wal-Mart

Paper Summary:

This paper examines the US toy market and its relationship to Wal-Mart. The author argues that toys should be distributed though various channels because of the stagnant growth of the industry. Also cited are other threats to toy manufacturers. The author concludes that toys should be distributed through as many channels as possible besides Wal-Mart.

Outline:
Introduction
The Toy Industry Overview and the Challenges it Faces
Possible Alternative Channels Should Toys 'R' Us Cease to Exist
Conclusion

From the Paper:

"The United States toy and game market grew by a very low 0.4 percent in 2004, to a value of approximately $31.1 billion. The United States is the largest segment in the global toy market, accounting for 39.3 percent of the global market's value ("Toys & games", 2005, p. 3). Toy sales and profitability fell dramatically in 2003, with net earnings falling from $229 million to $88 million, in the course of a year (Brown, 2004). Although the United States is a large player in the global market, there are three distinct areas that may represent a challenge for toy manufacturers, when it comes to distribution: stagnant market growth, reduced distribution channels, and the potential loss of Toys 'R' Us."

Sample of Sources Used:

• Brill, P. (2004 Oct). Massive expansion! While the big-box retailers may dominate toy sales for now, alternative channels of distribution are gaining ground as a strong and viable 'other' mass market. Playthings, 102(9). Retrieved June 16, 2006, from InfoTrac database.
• Brown, E. (2004, Sept 12). Imagining toyland without one of its giants. New York Times. Pp. 3-5.
• Robinson, J. (No date). John Robinson's Definitions of Key Concepts. (source provided by client, no other information provided)
• Toys & games - United States. (2005). Datamonitor. Retrieved June 15, 2006, from Datamonitor database.
• Toy'R'Us.com/Amazon.com. (2005). Retrieved June 16, 2006, from http://www.amazon.com/exec/obidos/tg/browse/-/171280/ref%3Drd%5Ftru%5Fhp%5FSTE/102-6345149-4162526.

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