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How Broken Is Your Business Model?

Nothing focuses the mind like the sight of the gallows

Steve McKee
Wed, 05/23/2018 - 12:02
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Hasbro recently reported a double-digit decline in revenue and a big internal overhaul. That followed Mattel’s news that it will be hiring its fourth CEO in as many years as it also tries to overcome slumping sales. Why are the behemoths of the toy business in such trouble? Because their most significant historical distribution channel, Toys “R” Us, declared bankruptcy.

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Why did Toys “R” Us declare bankruptcy? Because of Amazon.

 …

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Comments

Submitted by Alan Metzel on Wed, 05/23/2018 - 11:00

Evolving commerce

It would seem that Mattel and Hasbro have something up their sleeves as, up until the ax fell, it was a common belief that they would be Toys 'r' Us' white knights.

To add to the problem, with 3D measurement techniques and low cost additive manufacturing units, they (among many) will need to contend with product replication.

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Submitted by Christine (not verified) on Tue, 05/29/2018 - 07:48

In reply to Evolving commerce by Alan Metzel

Revisit old an retail model to fit today's consumer behavior?

Seeing the behavior of in-store shoppers makes me curious about the old catalog showroom stores (my first part time job that wasn't babysitting or delivering newspapers). The problem with these stores in the past was the required delayed gratification. Some models were in the onsite warehouse, but others had to be ordered and picked up weeks later. Today, shoppers are happy to wait the 24-48 hours after seeing an item in a retail store then ordering it up from a less expensive online source.

Toys 'R Us might only have needed to provide 2 or 3 of each toy in the store, then provided kiosks so shoppers could go online and order from the preferred source. Follow the Dell model, and order the toy to be made by the manufacturer upon order. Inventory reduction throughout the supply chain, consumer gets exactly what he or she is looking for...now we need to address the truck driver shortage.

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Submitted by Alan Metzel on Tue, 05/29/2018 - 08:21

In reply to Revisit old an retail model to fit today's consumer behavior? by Christine (not verified)

Driver shortage

With apologies to Stephen Sondheim - "Send in the drones!"

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