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Mattel Case Study

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Mattel Case Study

Travis Horbulyk
100119910
February 9th, 2012

Problems: * Decrease in market share * Damage to their brand image
Issues:
* Unable to keep up with changing technology * Children not playing with toys as much as they use to * Battered reputation due to the safety of their toys
SWOT Analysis: * Strengths * Brand Name * Strong customer base * Excellent variety of products for both boys and girls * Mattel has been in the fore front of the toy industry for 6o years * Strong online privacy policy * Controls fate of Barbie’s main competitor, Bratz. * Has excellent Global Manufacturing Principles * Weaknesses * Battered brand image over recent series of recalls * Losing control of their products and company image due to the outsourcing of their manufacturing to third party overseas manufacturers * They have little pricing power due to heavy reliance on Wal-Mart and Target * Keeping children’s interest when they are growing into the tween demographic. * Opportunities * Online and Video Game Market * Barbie retail store * Social Media * Create new alliances with other companies to help market products * Changing focus from traditional toys (Barbies/Hot Wheels) to electronic toys * Moving production from china back to the United States or a more sustainable country * Threats * Decreasing demand for toys * Economic recession * Raising oil prices * Children are outgrowing toys at an earlier age * MGA Entertainment Inc.

Criteria: 1) Long term profitability (10) 2) Rebuild customer trust in product safety (10) 3) Relative time to implement (8) 4) Cost to implement (8) 5) Sustain competitive advantage (7) 6) Appealing to tween

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