Mattel Inc.’s Situation Analysis in the Toy Market Research Paper

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Mattel has to focus on its own internal and external responsibilities. The case study focuses on the company strengths and Opportunities to increase global revenues. The case study focuses on resolving its weaknesses and threats to avoid a reduction in global sales. Mattel must focus on both its internal as well as external responsibilities to keep its present headship in the global market segment.

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Strengths

Mattel is a world Leader in the toy industry. The company built up its toy brand names after Ruth and Elliot Handler and Matson established Mattel in 1945, just after the war ended. The company’s switching to a publicly listed company generates $100 million revenue during the 1960s alone.

Second, the company’s products continue to be very popular for over forty years. One of its popular brands is the set of Barbie dolls. Another popular Mattel brand is the Fisher Price. Third, Mattel’s Matchbox brand creates high toy car demand for many years. Other popular Mattel brands include Tyco toys and Hot Wheels race cars (Ferrell and Hartline 457).

Third, the company complies with its global corporate social responsibility where its products are sold in the world market. The company sells its products in more than 150 countries around the world. The company sets up toy stores and production facilities in many countries. The company complies with the labor and child laws in the countries where its productions facilities are set up. The company complies with discrimination, freedom of association, cultural, ethical, and other working condition laws of the various countries where each facility is set up (Ferrell and Hartline 461).

Fourth, the company focuses a majority of its time, money, and efforts positively touching the lives of children around the world for over forty years. The company’s children’s foundation gives back to the world’s children by promoting its philanthropic child care efforts. The company and its employees annually offer charitable contributions to children’s welfare organizations. The company continues to operate a children’s hospital in California (Ferrell and Hartline 465). The company complies with children’s rights policies in each country where the Mattel brand is seen (Ferrell and Hartline 463).

Weaknesses

The company has a tainted (weak) image. First, the unauthorized use of lead paint wreaks continuing damage to Mattel’s reputation. The China-made toys were tainted with unauthorized lead paint, under Lee Der’s leadership. Second, the toy’s magnets’ being seen as choking hazards is another weakness. Consequently, the company received the 2007 Bad Product award by the Consumers International organization (Ferrell and Hartline 466).

Opportunities

The company can venture into other revenue-generating areas. The company can implement innovative marketing plans that include tie –ups with third parties to promote the Mattel toys. For example, McDonalds, Kentucky Fried Chicken, 7 – 11, and Wendy’s stores can offer free Mattel toys to its clients to increase the food stores’ revenues (Ferrell and Hartline 458). Second, the company can sell mature toys for adults to augment its sales.

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Threats

There are some significant threats to Mattel’s market segment leadership. First, the current economic depression has triggered a decline in demand for Mattel’s products in the United States. Second, there is a decline in the number of children growing today due to the economic depression (Ferrell and Hartline 466). Third, the information technology (internet) age triggers the children’s preference for computer games over Mattel’s physical toy products. Fourth, the lifestyle shift of the American youth continues to trigger a decline in the children’s demand for the old –fashioned Mattel toys (Ferrell and Hartline 466).

Based on the above discussion, Mattel has it own internal and external responsibilities to work on. The company must maximize its strengths to and Opportunities to increase global revenues. The company should resolve its weaknesses and threats to avoid a decline in global sales. Indeed, Mattel must focus on its internal and external responsibilities to keep its current leadership in the global market segment.

Works Cited

Ferrell, O. C., and Hartline, Michael, D. Marketing Strategies. Mason: South – Western. 2011. Print.

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IvyPanda. (2021, April 9). Mattel Inc.'s Situation Analysis in the Toy Market. https://ivypanda.com/essays/mattel-incs-situation-analysis-in-the-toy-market/

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"Mattel Inc.'s Situation Analysis in the Toy Market." IvyPanda, 9 Apr. 2021, ivypanda.com/essays/mattel-incs-situation-analysis-in-the-toy-market/.

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IvyPanda. (2021) 'Mattel Inc.'s Situation Analysis in the Toy Market'. 9 April.

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IvyPanda. 2021. "Mattel Inc.'s Situation Analysis in the Toy Market." April 9, 2021. https://ivypanda.com/essays/mattel-incs-situation-analysis-in-the-toy-market/.

1. IvyPanda. "Mattel Inc.'s Situation Analysis in the Toy Market." April 9, 2021. https://ivypanda.com/essays/mattel-incs-situation-analysis-in-the-toy-market/.


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IvyPanda. "Mattel Inc.'s Situation Analysis in the Toy Market." April 9, 2021. https://ivypanda.com/essays/mattel-incs-situation-analysis-in-the-toy-market/.

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