Mattel Case Study

1825 words 8 pages
Introduction
Mattel, the world’s leading toy and children’s good manufacturer has cultivated a strong portfolio of well known brands and products while being recognized has a highly responsible corporate citizen that makes ethics and safety a priority. The company must build on its heritage, while defending itself from threats. At the same faced with maintaining its market position in the face of many changes in their target market.

Situational Analysis

STRENGTHS
     Strong Products and Brands Global Presence High ethical standards High safety standards Highly influential market segment

WEAKNESSES
     MGA lawsuit Product Recalls High Dependence on Few Customers Declining Market Share Other litigation and legal
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Changing Demographics

Several demographical changes in the United States have occurred in recent years that affect toy buying.
Working mothers Working women are continuing to increase leading to more dual income

families that spend less time with their children. Toys and gifts are used to make up for spending less time with time.
Population Growth Toddlers and Preschoolers (0 – 4 years) are the fastest growing

segment of the population out pacing total population growth by 1.5%.
Multiple residences Due to the high rate of divorce, many children have two residences.

This may lead to duplicate toy purchases, one for each residence.
Strategic Alliances

There are many opportunities to form strategic alliances, as children become more brand savvy. Studies show that the use of a character reinforces the brand message with children. Whether it is finding or developing new characters, television shows and movies to license toys for or licensing the use of the company existing characters for other products, television shows and movies.

Threats
MGA and Other Competitors

After the long legal battles, MGA is poised to take renew focus in promoting their Bratz brand. At the height of their popularity, Bratz posed a significant threat to Barbie’s popularity. Mattel must stay innovative in developing new toys or it is also possible for another competitor to have the next big toy.

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