Mattel inc. Case Analysis



Executive Summary

Mattel is a unique company, and has changed the world in the area of children's toys. It has had many ups and downs in its 60 years of existence. With the changes in the environment (i.e. economy, competitors, and changing trends) it has tried to re-evaluate its strategies. It has made many strides to try and keep up with the current changes. In the future it challenges the rate at which children are growing up and moving away with toys. Ever changing technology and the rate at which consumers purchase are also of concern. With the change of new leadership, Mattel is in a good spot financially, other than factors out of its control. The low economy, the situation in the Middle East and low customer confidence has definitely made an impact. Analysts predict that Mattel has a great potential to expand in International markets. This will increase cash flow and can be of huge success for the company if they continue to follow their strategies. This company began out of a garage and has become more than a huge success. Mattel has changed the lives of children throughout the world. More and more competitors are emerging, but Mattel has a great chance of continued success.

Mattel inc. Case Analysis

Introduction

Mattel, Inc has the vision of being the world's premier toy brand, for the present and the future. It currently sells products in over 150 nations. The company was founded in 1945 by Harold Matson and Elliot Handler. It has gone to be 30,000 employees strong working in 43 countries. Mattel, Inc includes a number of toy brands such as Barbie, Fisher Price, Hot Wheels, American Girl, Tyco, and others. In 2008, the company was recognized by FORTUNE magazine as one of the “100 Best Companies to Work For”.

Case Analysis

SWOT Analysis

Strengths

One of Mattel's most important strengths is the history that it has behind their company. Mattel turns 60 this year, with much of that time spent at the forefront of the toy industry. Staying power such as that, leads to brand recognition: in Mattel's case, this is a positive thing. The brand remains very popular among customers. Mattel contributes to the communities in which it operates, particularly to causes benefiting children. It makes it very easy for stakeholders to support a company that will reciprocate the support (Weilbacher, W. 1993).

Mattel's new management has helped to turn one of the company's former weaknesses into strength. On time delivery of products to retailers has soared in recent years from 50% to 90%, thanks to improvements in information systems and warehouse facilities. High service numbers have led to happier distributors, a huge plus when considering they are the last contact between Mattel's product and the customer (Randall, 2001).

Finally, Mattel has been considerably successful venturing into international markets in recent years. International sales account for over one-third of Mattel's revenue, with plans to raise that figure to 50%. There are multiple reasons for the company's international success (McMartin, ...