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:
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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
Mattel, Inc has the vision of being the world’s premier toy brand, for the present and the future. It currently sells products in over 150 nations. The company was founded in 1945 by Harold Matson and Elliot Handler. It has gone to be 30,000 employees strong working in 43 countries. Mattel, Inc includes a number of toy brands such as Barbie, Fisher Price, Hot Wheels, American Girl, Tyco, and others. In 2008, the company was recognized by FORTUNE magazine as one of the “100 Best Companies to Work For”.
1. The decision facing Mattel is whether to continue to produce their products internationally where cost are low, or produce them in the United States where costs are significantly higher but quality is better. Mattel might want to even reconsider going global if there sales are decreasing more internationally than in the United States. Mattel needs to determine how many of the products produced internationally were recalled versus the amount of products produced in the United States that were recalled. Mattel also needs to decide how they are going to advertise their products in a way that will convince consumers in the external environment to buy their products, without having any
Citation: Mattel, Inc., et al v. MGA Entertainment, Inc., et al, No. 11-56357 (9th Cir. 2013)
You probably already knew this , but I thought I would mention it just in case.
In desperate need for a positive change, after losing more than twenty percent of sales in 2012 to 2014 and losing more than 500 million of sales in 2015, the risk for Mattel is extremely massive, but needed. The article goes back to Barbie’s nearly fifty seven old history, reveals and rejuvenates the powerful, yet disturbing impact of the Barbie.
Mattel, Inc. saw many recalls between 1997 and 2007. Seventeen recalls in ten years. The company recalled twelve products for six different issues between their main company, Mattel, and their extended brand, Fisher Price. From June to September of 2007, Mattel’s CEO, Robert Eckert supervised two health crises involving many popular toys within the #1 toy company in the world. The lead paint crisis was the first to surface, and small magnetic pieces were the second. From an European vendor, Mattel discovered traces of lead in the paint on toys such as the “Dora the Explorer” doll and its accessories, the “Go Diego Go” doll and its accessories, several “Sesame Street” characters’ toys and accessories, “GeoTrax Engine” toys, “It’s a Big Big World” toys and several Fisher Price toys. This came as a shock to Mattel, since the companies were required to use only certified suppliers’ paint. On September
Amazon and Mattel both as companies with specific strategies for specific industries. Amazon entered the business world as bookseller and Mattel entered the business worlds as a toy provider. Mattel made specific toy brands for itself such as Barbie, Matchbox Cars, Fischer Price and Magna Doodle. These brands help solidify Mattel as a legitimate and dominant toy company in the business market. Amazon started as web-based Retail Company. After becoming the world’s largest bookstore Amazon went on to add profitable online business ventures to its portfolio such as offering online music, electronics, becoming a videos store, and toys. Amazon sales dominance in the online retail world boosted the company to the corporate giant that it is today.
While the current differentiation business level strategy of Hasbro has enabled the company to maintain its strong brand and grow its revenues amidst general revenue decline in the industry, a better strategy would enable the company to remain profitable despite the slow growth of the industry. Hence, the company should focus on competitive positioning decisions as a differentiator. For instance, instead of relying on large retailers and other distributors to sell its products, Hasbro should establish its own stores in the three market segments as well as franchises in emerging markets. This will enable the company to directly deal with customers and offer comprehensive customer service and product repair. In addition, the company should continue with its constant innovation and creation of new products as well as reinvention of existing products while considering other entertainment platforms like television programs and digital media.
The world has rapidly changed and things are intense which makes children to be in the world of techno, children are adopting more interactive to electronic toys today has this could make Mattel change their product line to the new innovation and make it a good brand with a unique
Mattel, the world’s largest toys company, had been faced with some rough challenges due to some safety scandals revolving toy design and manufacturing in China. During August 2007 Mattel was forced to extremely recall toys due to loose magnets and excess lead found in some of the Mattel toys that posed immediate danger to the children that played with them. “Mattel voluntarily recalled 1.5 million Chinese made, Fisher-Price product, after the company learned that they contained too much lead.” A second recall of Mattel’s most popular items such as Barbie, Batman, Polly Pocket and Doggie Daycare play sets. The items contained small magnets that could fall out of the toy and be swallowed by young children.
Mattel Inc is amongst the well known identify within the production and designing in the toys. Company ended up being proven because of the Ruth and Elliot Handler and Matson within 1945. Company found a lot of ups and down from the times. Beneath Robert Eckert Company found some sort of glorious deal with license arrangement pertaining to creating merchandise relevant to the particular Harry Potter series of videos plus the books. Within the year 2003, Company acquired the particular honor connected with Management and business Liability Award by UNICEF. Mattel furthermore recognized by the particular Lot of money publication as one of the 100 Finest Organizations to operate Pertaining to within 2012. Company arrived within examination with difficulty connected with revenue in the harmful merchandise. An Western dealer seen lead coloring over a gadget. Within the year 2007, the corporation recalls the particular toys made up of lead coloring. About 10 thousand tons produced in china were being damaged. Organizations identify ended up being furthermore active in the deal technique theft Mattel’s core merchandise are mostly created for your children. Then it has to be hypersensitive towards interpersonal worries relevant to the particular children’s appropriate. Mattel realize the difficulties which could build honorable situations, so one of these acknowledge their probable troubles and take phase to help strengthen organization life values. Mattel produced Mattel
Barbie was introduced to the world in 1959, and is one of the most iconic dolls ever produced. Barbie is manufactured by Mattel, which was founded in California in 1944, and has dominated the toy market ever since. Barbie helped to create a name and an Empire for Mattel, who later introduced products such as Hot Wheels and Polly Pocket. Mattel, for many years, had a great reputation and produced products that were safe and children loved. Mattel began moving their manufacturing operations overseas about twenty years ago, and until recent years had enjoyed continued success. When Mattel began moving a majority of their manufacturing operations to China and Mexico, they never would have imagined the controversy they would find themselves in
Mattel’s iconic and best-selling brand is The Barbie. Introduced in 1959 as “The Teenage Fashion Model,” Barbie allowed girls to experience fashion and to explore various dreams, fantasies and aspirations without ever leaving home. Because of the introduction of the television in the 1950 's, companies discovered a new consumer audience among children and teenagers. The post-war era saw a strong economy advancing the middle class suburban families. Now, buying toys became a year round business versus holiday or luxury items.
Memories of playing with Barbie and her dream house or racing Hot Wheel cars are most often thought about when reflecting on your childhood. Have you ever stopped to think, where those toys were made, or if the company making them is ethical? Most consumers do not however the leaders at Mattel do. Mattel’s leaders know they have an ethical and social responsibility to their customers. Their goal is to produce toys that are not only safe but also made at ethically run production facilities.
As the makers of children’s toys, Mattel has the ultimate responsibility to ensure that every toy is made within the tightest of safety standards. With the case of the Mattel toy recall, the company acted within the spectrum of their code of conduct that was titled Global Manufacturing Principles. Once the problem was identified, Mattel quickly addressed the issue, by automatically issuing the product recall and conducted a special investigation. The findings from the investigation led to other issues being found in Mattel toys. Once again, Mattel quickly responded with more product recalls, and a deeper investigation into the reasoning behind the faults. Through these actions Mattel did act in a socially responsible and ethical manner.