Four Mattel Case Study Analysis

Four Mattel Case Study Analysis

Introduction

Mattel will be going under the microscope using the S.W.O.T. method of analysis. Global demand, reasoning behind a dip in revenue, their leading competitors and how it all ties together to be used as tools to implement a plan of action will be the end result of this analysis. From child labor practices overseas to the evolution of children's interests affecting the toy market in general, Mattel had and still has its work cut out for it in order to sustain positive business impressions globally, particularly with China, while also maintaining their industry lead.

Synopsis (Background) of the Situation

Mattel is the world's leading toy giant. Established in 1945 by Harold "Matt" Matson and Elliott Handler, they quickly became successful nationwide. Handler's wife, Ruth Handler, became president of Mattel and in turn established the incredibly popular Barbie line. By 1965, Mattel became the number one toymaker in America. In keeping up with society as well as the spirit of success, Mattel evolved and shifted from traditional toys such as dolls and board games, to more pertinent items such as electronics and video games. Mattel's steady evolution combined with its success over the years, essentially required global expansion, so that became the logical next phase. China became Mattel's principal manufacturer of their toys while still being headquartered here in the United States. With so much production happening in China, away from the direct eyesight of Mattel, issues inevitably arose. From finding a new source of packaging material to battling the dangers of lead paint, Mattel hit several, costly roadblocks.

Key Issues (Remember to complete the bullets of information in Appendix A first,;)

Mattel has several strengths which is why they've been able to preserve their lead in the industry. First and foremost, the innovation of Mattel is nearly unmatched, which would be their greatest strength. They've nearly cornered the market on board games and life simulation toys such as Barbie, ride-on toys and mock home goods while simultaneously expanding their horizons and including as well as inventing toys that capture the attention of children today in this heavily, technologically saturated society. A weakness that could be highlighted would be not being able to keep as tight of a grip on their overseas standards and practices. They have much better control of the situation now, but who's to say what may or may not happen down the road with even further success and expansion. And although their overseas practices could be looked upon as a weakness, it could also be looked upon as a window of opportunity. With Mattel being so immensely successful and powerful, they could use their success as a guide for the rest of the world's bigger businesses. They could fine tune the art of export while keeping a thumb on their foreign manufacturing standards. With Mattel being the powerhouse that it is, they could be looked to as something of a mentor to other companies who are striving to reach the same levels.

Define the Problem

In my opinion, the biggest threat that Mattel can face today and in the future is a repeat of the lead scandal of 2007. In early August of 2007, nearly 1.5 million toys had to be recalled due to hazardous levels of paint being found in the toys that were manufactured in China. This fiasco caused Mattel to have to adjust their second quarter