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1. What is your opinion of Ms. Georgiadis’ job performance as CEO of Mattel? What problems was
she facing during her short tenure?
She was given a tough task in repairing many problems that past CEO’s have done. Most of these
problems have come about by Toys R US going bankrupt in 2017 who was a key customer for
Mattel’s products and revenue. She did the best she could but they set her up for failure. There is a
reason why they had 4 CEO’s in 4 years.
2. Conduct a Five Forces Analysis of the Toy Industry. What is your overall conclusion regarding
the collective strength of the five competitive forces?
Threat of new entrants- There is a weak threat of new entrants for this Toys and Games market
because of the very high startup costs. This is a market in which you can gain a competitive
advantage from economies of scale. Buying in bulk will drive costs down and you can sell for a
lesser price than competitor’s. But starting up a company will take a long time for ROI.
Competition from substitutes- This is high because this market is very innovative. There are
constantly new toys and games that are coming out that interests the youth. This means you can
innovatively create a unique product and then create a trend for this product and this will give you a
competitive advantage. This is how you can be a substitute.
Buyer power- The buyer power is high in this case because companies in this market are buying
through economies of scale. So buying in bulk will give you a competitive advantage for your
company because it will drive down costs and then drive down selling prices for the customer.
Supplier bargaining power- The supplier power is weak because there are many more suppliers than
buyers in this market. This creates a weaker buyer power for suppliers.
