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Competitive Strategies Case Study

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Case Title:

Mattel: Competitive Strategies in the US

Publication Year : 2010

Authors: Gothandapani B, Chatterjee C, Gopal B

Industry: Toys

Region:USA

Case Code: COM0256IRC

Teaching Note:  Available

Structured Assignment:  Available

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Abstract:
From 1995 till 2007, the global toy industry has been experiencing changes like the rise in the number of video game players and a shift in consumer preferences. Due to the unpredictable shift in the play patterns of kids, traditional toy manufacturers - losing market share to video game companies - are toiling hard to retain their positions in the minds of Gen X kids. During 2003, Mattel Inc, the top player in the US toy industry realised that its total market share including the market for its flagship brand, Barbie, were under attack from competitors like MGA, Hasbro, LeapFrog, Jakks and video games players. Mattel swiftly retaliated by chalking out initiatives to counter the changes in the industry threatening its market leader position. Mattel broadened its product lines and undertook several other measures, as a result of which, its revenue increased for fiscal 2006. But industry observers are not sure if Mattel will succeed in retaining its industry leader position in the years to come.

Pedagogical Objectives:

Keywords : Barbie; Mattel; Toy industry; Video games; Competition; Hasbro; Age-compression; KGOY (kids getting older younger); Fisher-Price; Handlers; LeapFrog Enterprises; Jakks Pacific Inc; Learning Company; Bratz; Toy Fair

Contents : 
Trends in the Toy Industry
Evolution of the Toy Industry
Share of Leisure Time Spent in Various Activities
The Mattel Inc
Challenges for Mattel from Video Games
Competitive Strategies of Mattel
Major Players of the Video Game Industry

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