Case Study: How Toys R Us Lost Its Digital Edge to Amazon
Brief Summary Toys “R” Us signed a ten-year exclusive deal with Amazon in 2000, which redirected its online sales to Amazon and delayed its own eCommerce efforts. When Amazon breached the deal by expanding toy vendors, Toys “R” Us sued and ended the agreement—but it had already lost critical digital momentum. Company Involved Toys “R” Us, once the world’s largest dedicated toy retailer, focused on toys and baby products. Marketing Topic Public Reaction or Consequences Media and analysts viewed the exclusive Amazon deal as a strategic error that gave digital dominance away. The lawsuit restored control, but not runway. Concurrently