Mattel weakness

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Individual Part of the Group Project - MATTEL
Chen Jiun-Yuan
Texas Woman’s University
October 2, 2014
No matter boys or girls, every kids love toys. When it comes to toys, Mattel is one of the
famous toy companies in the world. Mattel’s most represented and successful products are
hot wheels matchbox car and barbie dolls. Today, we can find all kinds of Mattel’s toys
and video games in the market all over the world. However, this company has some crises
and it has been criticized by customers and experts. In 2007, Mattel recalled a lot of unsafe
toys which are made in China, and this scandal absolutely hits the image of this company
deeply. Recently, more and more new toy companies or counterfeit toy makers grow up,
and this also impacts Mattel’s business.
Strong part Weak part
• Global leading toy manufacturer
• Strong supply chain
• Good distribution network
• Customers concentration getting higher
• Weak online presence
• Utilization of cheap labor
• New Competition
• Increasing wages in China
Mattel has some strong aspect in the toy market. First of all, Mattel has great global
leading advantage in toy manufacture all over the world. People can find many different
kinds of toys that are produced by Mattel in the market. This company was founded in
1945 and became very successful before 1970. Many adults today play with its products
when they grew up. Now they might become parents, and they might be more willing to
buy Mattel’s toy because they know it very much and might be influence by its brand
equity. Strong supply chain and distribution network is another huge advantage of this
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