Case Analysis Mattel Essay Example

more. Strategic Alliance: Strategic Alliance is defined as partnering with traditional rivals to create competitive advantage. Mattel entered a strategic alliance with Disney in 1988 when Disney granted Mattel the licensing rights to produce a line of infant and preschool toys incorporating Disney classic characters such as Mickey Mouse, Donald Duck and Pluto.Multinational Enterprise: A multinational enterprise is a corporation that is based in one country but carries out business such as manufacturing and marketing in another country.

Walmart is the largest company that is an example of a multinational enterprise. Mattel Inc also fits into this category since it is based in the U. S. in California but has production and management in 43 countries around the world. Answer Questions Given in the Case Analysis 1. Describe Mattel’s target market for Barbie and Hot Wheels.

How did the firm’s marketing strategy appeal to this market internationally? According to my research, the target market for Barbie and Hot Wheels are kids ages 6-12. Mattel’s primary method of advertising is commercials on Television during shows catered to this same target market often building a connection to the show or a kid’s movie. In fact, Mattel was the one of the early toy companies to use TV marketing. The ads are meant to target children in a way that they will pressure their parents or other adults into buying the products, often out of guilt. .

How has Mattel tried to be a socially responsible firm in its numerous world markets? Mattel donates approximately 2% of its pre-tax profits to charities and organizations serving children worldwide that is executed through Mattel’s Children’s Foundation. There are five key partnerships

supported by the Mattel’s Children’s Foundation such as the Special Olympics, Save the Children, National Association of Children’s Hospital and Related Institutions, Children Affected by Aids Foundation, and Mattel’s Children’s Hospital at UCLA.Mattel donates funding to other organizations in addition to these five and Mattel employees volunteer at these organizations as well as other foundations throughout the world. In addition to its charitable contributions, Mattel has made changes to affect the environment such as reduce the amount of materials and energy in packaging in products, introduced energy efficient devices in its manufacturing process, and the recycling of materials to be used again in its manufacturing.

3. What environmental forces have created challenges for Mattel as it continues expansion into global markets?Which markets have created opportunities? The biggest environment force affected Mattel recently has been legal and regulatory with the high levels of lead paint found in their die-cast toys in 2007. This issue created a voluntary recall from Mattel for over 2 million toys and created doubt in customers to the quality of their Mattel toys. Mattel responded by immediately implementing a check system to accept paint only from certified suppliers, tightened controls throughout the production process and testing every production run to ensure compliance.

Mattel said that it is working in cooperation with the U. S. Consumer Product Safety Commission and other regulatory agencies worldwide. Mattel is also working with retailers worldwide to identify and remove affected products from retail shelves. In addition to legal factors, economic forces also affect Mattel, especially the global economy because of its international operations and markets.

The fluctuations in currency and the rising energy costs have Mattel concerned. Mattel

has made energy saving changes in its production to offset the costs.Although Mattel has its challenges, Mattel’s market in Asia has created opportunities for outsourcing as a way to save money and continue to expand its market. Mattel also continues to build joint ventures and strategic alliances to expand its global market such as the merger with fellow rival Tyco. Conclusions – Case Analysis Mattel, a toy company founded in 1945, is recognized as a worldwide leader in the design, manufacture and marketing of toys and family products, including Barbie, the most popular fashion doll ever introduced.

It is a multinational enterprise consisting of 30,000 employees operating in 43 countries. Its vision of a worldwide leader has led the company to engage in international marketing and produce products for over 150 countries since its beginnings in California. Much of the global expansion has been gained through strategic alliances and joint ventures, such as the joint venture with Bandai, the largest Japanese toy company, to market and sell products in that country. However, the company isn’t without its share of issues.The recall of die-cast toys and magnetic toy sets has left a stain on the company’s reputation. The question in the industry is one of company greed that has found the company with limited oversight of its subcontractor outsourcing in China.

Consumers have called for a ban of Chinese toy imports which would severely affect profits. Of course the company immediately put in measures to fix the oversight issues but it has still left doubt in the public eye. The big question now in my mind is how long will the public scrutiny last. With the U.

S.

conomy in a depressed state, are consumers more concerned with a lower price that they will turn a blind eye to questionable materials in the toys. Outside References: http://hotdocs. com/usitc. gov/tatalhts/other/rel_doc/bill_reports/hr-2287.

pdf http://www. EMEconomy. com/04082003/IndiatimesMattel. htm http://www.

mattel. com http://www. secinfo. com/d1tP3. 9t.

d. htm http://www. toydirectory. com/MattelToys/ http://www. upi.

com/Business_News/2007/08/29/NYT_Mattel_outsourcing_success_victim. html The Atlantic Journal of the Atlanta Constitution, Braddock, Paige, “Target Market: Your Children Under the Influence”, 6 December 1998.