Mattel Case Analysis

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Mattel Case Analysis Problem Definition The problem surrounding Mattel Inc. is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends.” This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards. SWOT Analysis:…show more content…
However, if Mattel decides on this course of action, they may soon find their products on the top shelves of the outlet stores. This will decrease the sales of their products because they are no longer at eye level. Mattel can also start to see their brand recognition slip if the products are no longer readily visible or available, and consumers will be quick to find substitutes. This will also make it easy for a competitive company to come in and take over the market share that Mattel currently holds. Over the long-term, if Mattel stays on this course of action, then they can be sure that they will eventually lose all or most of their market share. There are too many ambitious companies that want to make money. If Mattel remains on the plateau where they currently stand, they will be overtaken. The end result would inevitably be that Mattel either goes out of business or gets bought out. Alternative 2 An alternative strategy is for Mattel to expand into the technology market and add-on/re-innovate their existing product lines. Mattel has made many of the same products since it was established, with the exception of picture frames and doll furniture, which were short lived products. Barbie has changed a little bit, but other than that, the products have remained unaltered. In order to have a competitive advantage, Mattel needs to grow with the market. As of

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