Case Analysis Of Toys R Us

Toys R Us, founded by Charles Lazarus in 1948. Charles, who was selling baby furniture in his father`s bicycle shop, was responsive by listening to the needs of customers for children`s toys and responded to customer needs by redirecting his business strategy to a children`s toy supermarket. Lazarus had an autocratic leadership style and managed every aspect of the business, from book-keeping to the deliveries of the toys. He then underwent a rapid expansion strategy where branches where developed throughout the United States and franchised off to various countries.
The strategy that lazarus employed toward growth was in establishing a customer centric approach.Lazarus care most about the customer, as well as the growth of the company. He`s focus was not on exploiting customers, but in providing the best value he could to the customer.
He utilized a market penetration strategy, providing goods to customers at low profit margins with the efforts focus primarily on gaining market share. This strategy also creates barriers for entry to competitors who had low profit to contend with as well as rapid expansion of nation wide stores. With the expansion, Toys R Us started acquiring competitors stores within foreign and domestic reach (Reference for business, 2015).
These principles are still adopted at Toys R us today, bearing the slogan of easy, expert, fair. Maintaining a customer centric focus by aligning their efforts towards customer requirements. Alignment is establishing