The Mattel Company | EssayIvy.com

Surname1

Name

Tutor

Institutional Affiliation

Course Title

Course Code

Date

The Mattel Company

The SWOT Analysis of the Mattel Company

The Mattel Company, which is one of the major toy manufacturing, designing, and

marketing companies for a majority of family products and toys, has been able to face various

challenges, has its weaknesses, opportunities as well as threats to its operations. The Mattel

Company, started by Elliot Handler and Harold “Matt” Matson, in the year 1945 has been able to

operate in a changing world, where there is tough competition, among other issues affecting the

markets and the global economies (Cincotta et al., 2007, 3). In this section, the major focus shall

be the analysis of the various threats, weaknesses, strengths as well as opportunities available

for, or within the Mattel Company.

Strengths of the Mattel Company

Mattel Inc., having started its operations over a long period ago, has been able to gain its

ground and even expand its operations. The company has much strength, which has made it

withstand the test of time and the various challenges and difficulties along the way. A major

strength for the Mattel Inc. is the availability and accesses to various distribution channels. The

Surname2

company has also been able to establish a great brand name, which has had a good reputation

among its customers. The company has established a great relationship with its various

stakeholders, which includes the customers, suppliers, producers and even the employees. The

ability to produce various products, which are diversified among many demographics, and which

enable the company to have a variety of customers is a major strength for the company. Mattel

Inc. has also been able to adopt the low-cost manufacturing techniques, which have enabled the

company to have more revenue returns. Mattel Company has also been able to have a great

source of revenue, which has enabled the operations within the company to be easy and steady.

Other major sources of strengths for the Mattel Inc. are the good public relations, as well as the

availability of the economies of scale for the company (Mattel Inc., 2013, 37).

Weaknesses within the Mattel Company

Mattel Inc., just like any other business organization, it has its weaknesses, which in one

way or the other drag its business operations behind, causing losses, or even negative issues

within the company. One of the major weaknesses for the Mattel Inc. is the lack of long-term

contracts between the company and the customers, which in the long run cost the company

dearly. Mattel Inc. also faces the challenge of predicting the purchases, which is a major

weakness, making the company remain with a lot of cash at hand, which causes fluctuations

within the company, hence lowering the revenue returns. The company also has the weaknesses

of failing to differentiate the products, which can be used by very young children, and the ones

for teenagers, which has a problem with the customers, when purchasing (Jordi, 2015, Para 5).

Mattel Inc. usually sells its products via some major distribution channels, which make it

hard for the company to satisfy the needs of the consumers, and even some small scale retailers.

Surname3

There are also weaknesses within the company, where some of the products produced need some

licensees which cannot be obtained from the authorities. Another major weakness is the intense

competition from companies which produce cheap products of low quality, which act as

substitutes for the Mattel Inc. products (Vincent, c. 2008, 1).

Opportunities for Mattel Company

Mattel Inc. is presented with various opportunities. Some of the major opportunities for

Mattel Inc. include the availability of the web retailing services, where the company has invested

heavily. The process of globalization and the development of the internet, as well as the various

production processes, is highly important for the company, which gives it a higher opportunity to

compete with the other companies (Value Line Inc., 2017, Para 3). Other opportunities for the

Mattel Inc. include the ability to relocate its production plants from one point to the other,

creation of better storage, and transportation facilities for the company, which reduces the

intermediary costs for the company. Other opportunities for the Mattel Inc. include the creation

of collaboration with companies which have a focus on creating similar and related products, as

the Mattel Inc. hence, ensuring customers are more satisfied.

Threat for the Mattel Company

There are various issues, which threaten the existence and the development of Mattel

Company. Some of the threats include the collapse of major markets as well as the deterioration

of various economies, within which the company operates, such as the fluctuation of currencies

like the Venezuela Bolivar and the Chinese Yuan. Other challenges, posing as threats for the

company include the damaging of the company reputation, which is increased by the company’s

Surname4

process of recalling some of its products due to various factors, which majorly include health

issues (Harrison, 2010, 94). Other threats include the loss of interest by the children in products

manufactured by the company, due to lack of leisure time, increased internet development, for

games, which make the children spend a long period online than usual.

There is the issue of age, which affects the company, through the lack of adequate age

bracket, within which the products should be produced, as well as the shift in preferences by the

various clients (Cincotta et al., 2007, 20). The easy process of entering into the market by the

related companies is such a major threat to the operations of Mattel Inc. and the marketing of its

products. Various sellers and retailers have fallen bankrupt and have not been to continue the

business operations with Mattel Inc.

Strategic Marketing for the Mattel Company

Mattel Inc. has been able to adopt various marketing strategies, which ensure that, it sells

its products to a majority of the people all over the world. One major reflection of strategic

marketing for the Mattel Inc. is the incorporation of the parents in the matters of marketing for

the company’s products, especially via the online platforms. The company protects the rights and

the privacy of children, which gives the parents and the guardians’ confidence when their

children are interacting with the company and its products. Mattel Inc. has adopted ethical

business operations, where, it has conducted audits in all its business joints, contractors,

suppliers, among other stakeholders to ensure that there were no cases of child or forced labor.

Mattel has also focused on the creation of a good name for its company, by ensuring that

all business activities taking place within its premises are authentic and legal. The company has

been able to create an independent audit council, whose major function is to ensure that there is a

Surname5

guarantee of human safety and the protection of human rights in all business joints, which are

related to Mattel Inc. The company also constructed the Global Manufacturing Principles in the

year 1997, whose major aim was to favor businesses which contract with Mattel Inc. and which

protect human rights and ensure that its employees are secure and do not get forced to work.

Protecting its name and ensuring that its business activities expand, Mattel Inc. has been able to

ensure that its associates adhere to various stipulated laws within the company. Some basic laws

include the adherence to the wage policies, working schedules, consideration of bylaws and other

local laws, as well as the creation of safety and protection measures for all its employees (Palmer

et al., c. 2010, 5).

Mattel has also ensured that its focused in the creation of responsibility for all its

stakeholders in the business operations. Mattel Inc. has been able to improve the capacities of its

employees, which promotes its productivity and expertise. For any business to partner with

Mattel Inc., the business must portray the ability to uphold and even promote the principles of

Mattel Company. Mattel Inc. ensures that the businesses operate within the stipulated laws of the

state as well as the local laws of the area, as well as the promotion of belief of Mattel Company.

Partners of Mattel Inc. Should ensure that they adhere to Mattel’s Global Manufacturing

Principles, enable Mattel to have access to its business records and even allow basic inspections

of its operations by Mattel Inc. officials. Mattel Inc also promotes societal activities, especially

via the creation of the Mattel Children’s Foundation of 1978. Mattel has focused on the building

of Mattel Children’s Hospital at the University of California, Los Angeles (UCLA). The

company also promotes the Family Learning Program, as well as the promotion of gift kits for

the UCLA facility. In marketing itself, Mattel Inc. has also focused on the creation and the

sustenance of the Mattel Volunteers; Happy to Help program. Mattel Inc. has also been able to

Surname6

promote itself and its operation via the adherence to the various labor laws. The company has

also been able to promote human rights and protection of its employees, by observing the

minimum wages, working hours among other factors (Cincotta et al., 2007, 8).

Marketing Strategy

Marketing strategies are the plans which are set and used by the companies and other businesses

to market and sell their products to various entities. Various businesses adopt different

marketing strategies, which ensure that they get the highest number of customers, making profits

as well as ensuring that it adheres to the various factors of the markets. Marketing strategies also

include all the business set goals and objectives, whose major aim is to increase the level of

revenue returns and increase the competitive business advantage in the market (Kanagal, 2015,

3).

Marketing Strategy of Mattel Company

Mattel Inc. has focused on the creation of diversified products, which make it possible for

the business to create more profits. Diversification ensures that the company has a variety of

products to offer for its clients. The company manufactures various products, which include; the

Barbie doll, which was a major source of income for the company for a long period. Mattel Inc.

has been able to adopt rapid and fast changes to its production and marketing of its products.

When there was intense competition for its brand, the Barbie doll, from the Bratz Company,

Mattel Inc. changed to produce another doll, for the younger girls, who looked younger and

tendered. The major goals for Mattel Inc. were to ensure it sustained its market competitiveness

Surname7

and ensured that it recovered the 15% revenue decline in the sales of the Barbie doll due to

competition from the Bratz Company.

In the operation of the Mattel Inc. marketing strategy, the company has been able to

understand the various factors which influence the business and its development. Some of the

factors which Mattel Inc. has put into consideration include the political factors, the economic

factors, the social and the technological factors which have to be put into consideration for the

company to operate as desired. The company has also been able to put into consideration the

various legal and environmental factors which the business has been able to put into

consideration for the company to operate as desired. In the marketing process of Mattel Inc. the

company has been able to adopt the customized target strategies, where the products produced,

such as the Barbie doll and the American Girl doll, are made specifically for young girls. The

business has been able to ensure that it keeps a good track of the customer needs and desires,

which is ensured via the differentiated strategy, where each group of clients has their products,

with a certain characteristic.

Mattel Inc. also focuses on the major 3C’s strategy, which gives a major concern of the

customer, competitor, and the corporation. The Business ensures that there is the satisfaction of

all its customers, by producing high-quality products and even the products which meet the

demand of the customers. Mattel has ensured that it keeps one step ahead of its competitors, not

only in its normal production activities but also in its normal operations. The corporation has

kept itself within the set national and international rules and regulations, which ensures that there

is the development of a better strategy for conquering and sustaining the market (Thorne et al., c.

2010, 374).

Surname8

Recommendations for the Future Marketing Strategy

For Mattel Inc. to ensure that it protects its business and marketing position, given that

there are various challenges within the market, there are various factors to put into consideration.

Some of the factors to put into consideration include the development of a real-life marketing

strategy, where there is the application of marketing common-sense, staying ahead of the

competitor and ensuring that products produced reflect on the needs of the customers. Another

recommendation, which applies to the marketing strategy, is the adoption of the market

protection mechanisms, better product diversification, development of products which move with

time, as well as ensuring that there is the development of the products with higher demand, such

as the Barbie doll and the American girl. The company should also try t venture in other markets,

such as the African continent, where the people have not yet developed into the internet era.

There should be intensification, diversification, integration as well as the categorization of all

products developed by the company.

Bibliographies

Cincotta Jason, Camacho Cathryn, and Olian Drew, Strategic Report for Mattel, Inc., Harkness

Consulting Innovation through Collaboration, April 14, 2007

Surname9

Harrison Jeffrey P., Essentials of Strategic Planning in Healthcare, Health Administration Press,

2010

Jordi, Mattel: Playing With Ethics, March 31, 2015, <Available Online>

<https://stakeholder13.wordpress.com/2015/03/31/mattel-playing-with-ethics/>

Kanagal Nagasimha Balakrishna, Innovation and product innovation in marketing strategy,

Journal of Management and Marketing Research, Volume 18 – February 2015

Mattel Inc., 2013 Annual Report, 333 Continental Boulevard; El Segundo, CA 90245-5012; 310-

252-2000

Palmer Robert, Kuhrau Marissa, and Denzel Reece, Mattel, Inc. Client Report, Sontag Solutions,

c. 2010

Thorne Debbie, Fraedrich John, Ferrell O.C., Jackson Jennifer, Case 6-Mattel Confronts its

Marketing Challenges

Value Line Inc., SWOT Analysis: Mattel, Inc., [Available Online]

<http://investor.valueline.com/blog/swot-analysis-mattel-02-2017>

Vincent L., Mattel, Inc: The Lead Paint Recall, Case #6-0033, Tuck School of Business at

Dartmouth, Centre for Digital Strategies

Surname10

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."