Mattel : The Ultimate Barbie Dream House

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In 2009, Mattel opened Barbie’s first flagship store, House of Barbie, in Shanghai, China. Known as the ultimate Barbie dream house (Voigt, 2012), Mattel spent millions on setting up the most fashionable boutique where you could go to have all Barbie’s needs met for bot child and adult, to include dolls (Wang, 2012). Being that the boutique offered large quantities of products and services in variety, the company had a hard time deciding which product would catch on, how much consumers were willing to pay for the product and which ones to localize and the price of localizing in advance (Voigt, 2012). Mattel would eventually discover the magnitude of their mistakes would eventually overwhelm their ability to learn and adapt due to their dealings with too many parts moving in the dynamic yet unfamiliar market in China.. These mistakes caused them to eventually close doors two years later.
Problems Mattel Faced It is often said that failure is a stepping stone to success (Wang, 2012). Lamentably, a failure of this magnitude cost the company millions or even billions of dollars. One of the issues that Mattel faced in China was the price of the merchandise. Being that Mattel didn’t source in China, the merchandise became too expensive for the consumer. With their being so many knock off Barbie’s on their market, not to mention the fact that Barbie wasn’t a recognizable brand on their market, the consumer went for the cheaper or the knock off brand already out there. This

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