Strategic Brilliance or Blunder: Toys “R” Us and Zhu Zhu

Toys “R” Us data:
§  Wal-Mart replaced Toys “R” Us as the largest US toy seller more than a decade ago
§  Toys “R” Us’ strategy is not to compete on price but to compete on service and selection, including high-end toy products (via it’s F.A.O Schwarz acquisition)
§  849:  U.S. Toys “R” Us and Babies “R” Us
§  700:  International stores

Strategic Brilliance or Blunder:  Brilliance
§  Introduced to Zhu Zhu Pets (fake hamsters) at the Hong Kong Toys and Games Fair in 2008
§  Key competitive move #1:  Determined market response
§  Key competitive move #2:  Determined how to make the Zhu Zhu the 09 Christmas story
§  Key competitive move #3:  In August 2009, placed large order with Zhu Zhu Pets maker (Cepia, an Australian firm) in preparation for Christmas 2009 shopping season

Source(s):  NYT