Mattel Case

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Mattel was founded in 1945 by Elliot and Ruth Handler. The couple started out making furniture to sell out of their garage. This business was a success, but they wanted a new business approach to remain competitive in the fast-changing world.
So, they turned to making toys, and Mattel became the world’s largest toy company, with a revenue of $5.8 billion and a net income of $684 million in 2010.

Recently, the company commissioned Chinese companies to produce some of its toys. These Chinese-made toys were suspected of containing harmful aspects for children such as magnets which could be swallowed by children, hazardous lead paint, and plastic ignition key that kids can sit on or fall.

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Till today, the threat of lawsuits remains. These scandals give a bad image to the company

Mattel needs to develop strategies and solutions for the increasingly popular digital delivery of entertainment. Children are spending more and more time online and playing videogames. The major growth in electronic games is console gaming (Xbox, Playstation, Wii) and, so far, Mattel has not made progress in the right direction in this field.

Marketing strategy:

« Mattel regards the thoughtful management of the environment and the health and safety of its employees, customers, and neighbors as among its highest priorities and as key elements of its responsability to be a sustainable company »


1- An alternative strategy is for Mattel to take new safety measures and to be very careful about the dangers that its products could contain.

2- Another alternative is to stop producing in countries where costs are low.

3- Mattel can also try to expand into the technology market.


Strategy 1 and 3: Mattel should integrate the technology market without abandoning its initial market.

Since electronic games are becoming more and more demanded, Mattel should respond to the demand by penetrating the technology market and offering electronic games. In this domain, consumers would not reproach Mattel to sell toys that can lead to physical injuries. So, the company would get rid of these accusations. The danger of

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