Mattel Case Study Analysis

2324 Words Jan 4th, 2014 10 Pages
Mattel Case Study analysis
II Problem Statement
As per the case study, Mattel’s main issue is that they are not living up to their core mission. The case clearly states that Mattel’s philosophy is to satisfy the customer’s needs and wants. Delivering what the customer needs and wants can be segregated into two broad categories:
First, product development: According to the case, Mattel’s product development ensures that its portfolio never stagnates. Unfortunately, Mattel has failed to adapt to the evolving demands of children, as they are becoming increasingly technologically savvy and are therefore interested in electronic and interactive rather than traditional toys such as Barbie or Hot Wheels at a younger age. This is evident,
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Mattel lost 206 million dollars because of a lack in due diligence in the acquisition and as a result had to lay off 10% of its employees in 2000. Second, their failure to cater to the rapidly changing attitudes and of their target consumer to more web-based toys and games resulted in Mattel losing major sales opportunities8. Their consumers were growing up and wanting adult playthings such as cell phones and facebook profiles, which decreased the product life cycle of their toys such as Barbie and Hot Wheels, drastically decreasing their profitability and growth potential. Mattel also did not use their web-presence effectively; they devoted too much time, money, and effort into developing the Barbie and Hot Wheels websites, when the real interest for their target consumers was social media and connecting to their peers via the internet.
Privacy: The issue of privacy stemmed from the exponentially increasing Internet use by teens. Particularly, when Facebook, the worlds most popular social media tool, abolished its exclusive availability to solely university students and become available to the general public, there was a dramatic increase in internet usage among younger web-users. With this increased internet usage came

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