netrashetty
Netra Shetty
Zappos.com is an online shoe and clothing shop. Currently based in Henderson, Nevada, United States,[4] the company warehouse is located in Shepherdsville, Kentucky, along with an outlet store.
Since its founding in 1999, Zappos has grown to be the largest online shoe store.[5] Zappos did "almost nothing" in sales for 1999, but grossed over USD$800 million in merchandise sales in 2007 and grossed over $1 billion in 2009.[2] In July 2009, under pressure to deliver a return to Sequoia Capital and its other investors, the company announced it would be acquired by Amazon.com in an all-stock deal;[6] by the time the deal closed in early November, the deal was worth about $1.2 billion.[7][8][9]
The name Zappos is derived from the Spanish word zapatos, meaning shoes.
JAKKS Pacific (NASDAQ: JAKK) is the third largest toy manufacturer in the United States by revenue. The company makes action figures, toy cars, dolls, and video games.[1][2] In addition to its own product lines, such as Funnoodle and Flying Color, JAKKS also has licensing agreements for several leading entertainment brands. These include licenses for Cabbage Patch Kids and Hannah Montana for dolls, Care Bears and Barney for preschool-related products, and World Wrestling Entertainment (WWE) for video games and action toys.[3]
JAKKS Pacific primarily competes with Mattel and Hasbro, the top two toy manufacturers in the United States.[4]
Business Overview
Business & Financial Metrics[5]
In 2009, JAKK incurred a net loss of $385.5 million on net sales of $803.7 million. This represents a significant drop from 2008, when the company earned $70.8 million on $903.4 million in net sales.
[5]
Business Segments[6]
JAKKs operates through three business segments.
Traditional Toys (88.8% of 2009 Sales)
JAKKS' Traditional Toys segment can be divided into eight sub-categories:
Contents
1 Business Overview
1.1 Business & Financial Metrics[5]
1.2 Business Segments[6]
1.2.1 Traditional Toys (88.8% of 2009 Sales)
1.2.2 Craft/Activity/Writing Products (9.1% 2009 Sales)
1.2.3 Pet Products (2.0% of 2009 Sales)
2 Key Trends and Forces
2.1 Video game emphasis
3 Competition
4 References
Action Figures and Accessories consists of JAKKS' figures based on licensed characters. In fiscal 2007, the characters in this segment were principally based on the World Wrestling Entertainment (WWE), Chronicles of Narnia, and Pokemon franchises.[1] JAKKS added to its repertoire in 2008, obtaining licenses to produce action figures for Ultimate Fighting Championship (UFC) and American Gladiators.[7]
Toy Vehicles is made up of toy vehicles (both motorized and not motorized) and accessories in the Road Champs, RC Racers, and Nascar lines.[1]
Electronic Products is JAKKS Pacific's line of electronic games, and consists of plug and play gaming products (TV games), and video games. JAKKS creates products for this segment under brand names such as Plug It In & Play TV Games, Laser Challenge, and Discovery Kids. JAKKS creates video games through a joint-venture with THQ.[8]
Role-Play and Novelty Products features pretend play products and playsets for girls and boys under licensing agreements for popular brand names such as Dirt Devil, Subway, Hannah Montana, Barbie, and Pirates of the Caribbean.[1]
Infant and Pre-School Toys and Plush Toys consists of slumber bags and toys sold through licensing agreements with brands such as CareBears, Barney, and Curious George.[1]
JAKKS Pacific's Dolls segment is made up of large, fashion, and mini dolls and related accessories through licenses with names such as Hannah Montana, Cabbage Patch Kids, and The Cheetah Girls. The Dolls segment is another big revenue earner for JAKKS, as the brand names of its products continue to rise in popularity.[1]
Seasonal and Leisure Products consists of kites under the Go Fly A Kite, and Air Creations brands, Funnoodle pool toys, water guns under the Storm name, and vehicles under names such as Fly Wheels and XPV.[1]
Junior Sports and Toy Paintball Products, the last of the eight segments within Traditional Toys, includes products under JAKKS Pacific's Storm and Gaksplat brands.[1]
Craft/Activity/Writing Products (9.1% 2009 Sales)
This segment consists of crafts, activity sets, stationery products, playsets, and lunchboxes. Its craft products are mostly sold under the Color Workshop name, and include products such as Blopens and Vivid Velvet writing instruments and stationery products, as well as activity products under the Flying Color name. JAKKS' playsets and lunchboxes are mostly based on brands such as Nickelodeon, Dora the Explorer, and Pokemon.
Pet Products (2.0% of 2009 Sales)
The pet products segment consists of toys, food products, beds, clothing, and accessories that JAKKS produces for pets. JAKKS Pacific manufactures these products under licenses with brands such as American Kennel Club and The Humane Society of the United States, entertainment properties such as Disney, and private label brands such as Totally My Pet.
[6]
Key Trends and Forces
Video game emphasis
Since 1998, JAKKS has been a part of a joint venture with THQ (THQI), a publisher and distributor in the video game market. As a part of this joint venture, JAKKS Pacific makes games based on World Wrestling Entertainment (WWE), another company with which JAKKS has a partnership. WWE filed a bribery lawsuit against JAKKS in 2004, which JAKKS won in December 2007 when a judge dismissed the case. Nevertheless, JAKKS has maintained its partnership with WWE, and plans to continue to produce WWE-themed video games at least until their licensing deal ran out in 2009.[9]
Although JAKK's video game joint venture added to the company's profitability until 2008, the company incurred a $16 million net loss from the venture in 2009.[5]
Competition
JAKKS Pacific is the third largest toy manufacturer in the United States partially because it makes products in several different categories within the toy industry (i.e. video games, traditional toys, etc.). However, many of its competitors specialize in a certain aspect of the toy industry, and as a result, JAKKS' different products compete with different companies. These include:
Mattel (MAT) is the world’s largest toy manufacturer, selling a host of well-known brand names such as Barbie, Matchbox, Fischer Price, and Hot Wheels. However, because Mattel focuses so much on traditional toys, it faces pressure from the fast-growing video game industry.[10]
Hasbro (HAS), the United States' second largest toy company, owns the largest market share in the board game industry. Its products include the Transformers, Mr. Potato Head, Play Doh, Milton Bradley, and Parker Brothers brands.[11]
RC2 (RCRC) has grown significantly during the new millennium through a host of important acquisitions, and has, as a result, become an influential company in the toy industry. It is perhaps best known for its products under licenses with the Thomas & Friends, Bob The Builder, and John Deere brands.[12]
Leapfrog Enterprises (LF) produces technology-based educational products under the LeapFrog, LeapPad, Leapster, and Quantum Leap brands.[13]
Activision (ATVI) publishes and distributes video games. Blizzard, a subsidiary acquired in 2007, is the developer behind the popular World of Warcraft game, thus letting Activision become a key player in both the console gaming and online gaming industries, as well as the largest video game company in the world (surpassing Electronic Arts).[14]
Since its founding in 1999, Zappos has grown to be the largest online shoe store.[5] Zappos did "almost nothing" in sales for 1999, but grossed over USD$800 million in merchandise sales in 2007 and grossed over $1 billion in 2009.[2] In July 2009, under pressure to deliver a return to Sequoia Capital and its other investors, the company announced it would be acquired by Amazon.com in an all-stock deal;[6] by the time the deal closed in early November, the deal was worth about $1.2 billion.[7][8][9]
The name Zappos is derived from the Spanish word zapatos, meaning shoes.
JAKKS Pacific (NASDAQ: JAKK) is the third largest toy manufacturer in the United States by revenue. The company makes action figures, toy cars, dolls, and video games.[1][2] In addition to its own product lines, such as Funnoodle and Flying Color, JAKKS also has licensing agreements for several leading entertainment brands. These include licenses for Cabbage Patch Kids and Hannah Montana for dolls, Care Bears and Barney for preschool-related products, and World Wrestling Entertainment (WWE) for video games and action toys.[3]
JAKKS Pacific primarily competes with Mattel and Hasbro, the top two toy manufacturers in the United States.[4]
Business Overview
Business & Financial Metrics[5]
In 2009, JAKK incurred a net loss of $385.5 million on net sales of $803.7 million. This represents a significant drop from 2008, when the company earned $70.8 million on $903.4 million in net sales.
[5]
Business Segments[6]
JAKKs operates through three business segments.
Traditional Toys (88.8% of 2009 Sales)
JAKKS' Traditional Toys segment can be divided into eight sub-categories:
Contents
1 Business Overview
1.1 Business & Financial Metrics[5]
1.2 Business Segments[6]
1.2.1 Traditional Toys (88.8% of 2009 Sales)
1.2.2 Craft/Activity/Writing Products (9.1% 2009 Sales)
1.2.3 Pet Products (2.0% of 2009 Sales)
2 Key Trends and Forces
2.1 Video game emphasis
3 Competition
4 References
Action Figures and Accessories consists of JAKKS' figures based on licensed characters. In fiscal 2007, the characters in this segment were principally based on the World Wrestling Entertainment (WWE), Chronicles of Narnia, and Pokemon franchises.[1] JAKKS added to its repertoire in 2008, obtaining licenses to produce action figures for Ultimate Fighting Championship (UFC) and American Gladiators.[7]
Toy Vehicles is made up of toy vehicles (both motorized and not motorized) and accessories in the Road Champs, RC Racers, and Nascar lines.[1]
Electronic Products is JAKKS Pacific's line of electronic games, and consists of plug and play gaming products (TV games), and video games. JAKKS creates products for this segment under brand names such as Plug It In & Play TV Games, Laser Challenge, and Discovery Kids. JAKKS creates video games through a joint-venture with THQ.[8]
Role-Play and Novelty Products features pretend play products and playsets for girls and boys under licensing agreements for popular brand names such as Dirt Devil, Subway, Hannah Montana, Barbie, and Pirates of the Caribbean.[1]
Infant and Pre-School Toys and Plush Toys consists of slumber bags and toys sold through licensing agreements with brands such as CareBears, Barney, and Curious George.[1]
JAKKS Pacific's Dolls segment is made up of large, fashion, and mini dolls and related accessories through licenses with names such as Hannah Montana, Cabbage Patch Kids, and The Cheetah Girls. The Dolls segment is another big revenue earner for JAKKS, as the brand names of its products continue to rise in popularity.[1]
Seasonal and Leisure Products consists of kites under the Go Fly A Kite, and Air Creations brands, Funnoodle pool toys, water guns under the Storm name, and vehicles under names such as Fly Wheels and XPV.[1]
Junior Sports and Toy Paintball Products, the last of the eight segments within Traditional Toys, includes products under JAKKS Pacific's Storm and Gaksplat brands.[1]
Craft/Activity/Writing Products (9.1% 2009 Sales)
This segment consists of crafts, activity sets, stationery products, playsets, and lunchboxes. Its craft products are mostly sold under the Color Workshop name, and include products such as Blopens and Vivid Velvet writing instruments and stationery products, as well as activity products under the Flying Color name. JAKKS' playsets and lunchboxes are mostly based on brands such as Nickelodeon, Dora the Explorer, and Pokemon.
Pet Products (2.0% of 2009 Sales)
The pet products segment consists of toys, food products, beds, clothing, and accessories that JAKKS produces for pets. JAKKS Pacific manufactures these products under licenses with brands such as American Kennel Club and The Humane Society of the United States, entertainment properties such as Disney, and private label brands such as Totally My Pet.
[6]
Key Trends and Forces
Video game emphasis
Since 1998, JAKKS has been a part of a joint venture with THQ (THQI), a publisher and distributor in the video game market. As a part of this joint venture, JAKKS Pacific makes games based on World Wrestling Entertainment (WWE), another company with which JAKKS has a partnership. WWE filed a bribery lawsuit against JAKKS in 2004, which JAKKS won in December 2007 when a judge dismissed the case. Nevertheless, JAKKS has maintained its partnership with WWE, and plans to continue to produce WWE-themed video games at least until their licensing deal ran out in 2009.[9]
Although JAKK's video game joint venture added to the company's profitability until 2008, the company incurred a $16 million net loss from the venture in 2009.[5]
Competition
JAKKS Pacific is the third largest toy manufacturer in the United States partially because it makes products in several different categories within the toy industry (i.e. video games, traditional toys, etc.). However, many of its competitors specialize in a certain aspect of the toy industry, and as a result, JAKKS' different products compete with different companies. These include:
Mattel (MAT) is the world’s largest toy manufacturer, selling a host of well-known brand names such as Barbie, Matchbox, Fischer Price, and Hot Wheels. However, because Mattel focuses so much on traditional toys, it faces pressure from the fast-growing video game industry.[10]
Hasbro (HAS), the United States' second largest toy company, owns the largest market share in the board game industry. Its products include the Transformers, Mr. Potato Head, Play Doh, Milton Bradley, and Parker Brothers brands.[11]
RC2 (RCRC) has grown significantly during the new millennium through a host of important acquisitions, and has, as a result, become an influential company in the toy industry. It is perhaps best known for its products under licenses with the Thomas & Friends, Bob The Builder, and John Deere brands.[12]
Leapfrog Enterprises (LF) produces technology-based educational products under the LeapFrog, LeapPad, Leapster, and Quantum Leap brands.[13]
Activision (ATVI) publishes and distributes video games. Blizzard, a subsidiary acquired in 2007, is the developer behind the popular World of Warcraft game, thus letting Activision become a key player in both the console gaming and online gaming industries, as well as the largest video game company in the world (surpassing Electronic Arts).[14]
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