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EFIS
ECONOMIC FORCES
The US toys and games market is the largest in the world; the country's massive consumer base provides a stable platform for the market's development. Whilst the toys and games market's performance has been boosted by the pick-up in the US economy, increased competition among retailers is set to pull down the price of many products, restricting the markets forward momentum.
INDUSTRY FACTORS
The US toys and games market generated total revenues of $31.1 billion in 2004, representing a compound annual growth rate (CAGR) of 5.4% for the five-year period spanning 2000-2004. In comparison, the US toys and games market performed at a similar level to the European and Asia-Pacific markets, which experienced CAGRs of 5.4% and 5.6% respectively over the same period.
TECHNOLOGICAL FORCES
Traditional games sales proved the most lucrative for the US toys and games market in 2004, generating total revenues of $21 billion, equivalent to 67.7% of the market's overall value. Despite being the largest sector in the market, traditional games are under pressure from the increasingly popular computed games segments, which are steadily eating into its market share.

POLITICAL LEGAL REGULATIONS
The sale of games software contributed significant revenues in 2004, with total sales of $7.4 billion in 2004, equating to 23.8% of the market's aggregate revenues. The remaining 8.6% of the toys and games market is accounted by for by games console sales, which generated revenues of $2.7 billion in 2004.

SOCIETAL TRENDS
There is increasing sensitivity to the products marketed and any offensive product needs to be countered with a strong public relations effort. Please see the Bear episode below. Looking forward, the market is forecast to decelerate its current performance, with an anticipated CAGR of 3% for the five-year period 2004-2009 expected to drive the market to a value of $36.1 billion by the end of 2009. One significant reason for the reduction in growth rates will be the increasing roll of discount retailers in the market, pressurizing prices. Due to the slowdown in the US toys and games market, the European and Asia-Pacific markets will outperform the US market, with expected CAGRs of 3.9% and 5.5% respectively.

EXTERNAL FACTORS

OPPORTUNITIES
WTO& ASIAN MARKETS
Due to the slowdown in the US toys and games market, the European and Asia-Pacific markets will outperform the US market, with expected CAGRs of 3.9% and 5.5% respectively. The global market comprises Asia-Pacific, Europe and the US.

INCREASED TRENDS OF GIFT GIVING
The company extended its product offering in the gift delivery business by developing PajamaGram and TastyGram. The PajamaGram gift delivery service offers a variety of pajamas and related sleepwear and spa products, packaged with lavender tub tea and a personalized card in a keepsake hat-box, and delivered in a colorful gift box. The TastyGram gift delivery service focuses exclusively on food related gift products, including regional food specialties such as NY Carnegie Deli Cheesecake and Gino's Chicago Deep Dish Pizza. A TastyGram gift is also delivered complete with a personalized ...