Welcome back to Cool Companies! I have made the creative decision to reprise my "childhood" theme from,... erm... earlier today, with a dissertation detailing the retailer of tangible development entertainment, Toys"R"Us!
Firstly, however, I would like to discuss the marketing concept of a "category killer." A category killer is any brand that specializes so effectively in an area of goods or services that it eliminates all competition within said area, or category. For instance, eBay, the electronic auction website, effectively has a monopoly on said varieties of websites, as sellers seek a high population of buyers, and buyers seek a great variety in supply of goods. This creates a phenomenon of runaway exponential growth. Prior to the 1990s, Toys"R"Us enjoyed a similar situation, as their variety of children's playthings and specialized appeal resulted in a more effective business model. Unfortunately for the company, with the advent of prolific online retailers and the outreach of general big box stores such as Target or Walmart, Toys"R"Us has experienced notable decline. As such, numerous unsuccessful attempts to stimulate the stagnant company were enacted. For fear of further plummets in stock value due to the expected dead cat bounce, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts (KKR) and Vornado Realty Trust purchased the company in its entirety in 2005. This also allotted greater leverage of the company to its primary executives.
Wait a second, why am I talking about grown-up stuff when I'm at Toys"R"Us? Ah, I recall browsing the LEGO Duplo aisle and being bought this delightfully nostalgic gem... okay, I have "important work" to do... I will post again tomorrow.