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MATTEL - Case study of Corporate Strategy

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This presentation illustrate the Mattel's strategy case study

This presentation illustrate the Mattel's strategy case study

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MATTEL - Case study of Corporate Strategy Presentation Transcript

  • 1. When you were child,What was your most expected ? 1
  • 2. CASE STUDY CORPORATE STRATEGYNGUYEN XUAN DAM I VU THANH LOAN I LE HAI BINH I NGUYEN THUY NINH I MATHILDE BRUGIER 2
  • 3. INTRODUCTION Founded in 1945 by Harold “Matt” Matson & Elliot Handler. Their names smushed together make Mattel Mission : “Create The Future Play” Value : “Play with Passion, Play Together, Play Fair and Play to Go” THE BEST & LARGEST GLOBAL TOYS COMPANY ! 2010 Total revenues : 5.85 Billion USD 78th Best Company To Work For – Fortune Magazine 2010 3
  • 4. THEIR BRANDS 4
  • 5. INTRODUCTION 5 Plants in China 1 Plant in Thailand 1 Plant in Indonesia 36% Market 29% Market 1 Plant in Malaysia 24% Market 2% Market1 Plant in Mexico 7% Market 65% products from China ! 5
  • 6. OVERVIEW ABOUT TOYS INDUSTRYTOYS INDUSTRY •Fad driven •Compete by electronic games, internet… •High risk •Low switching cost •Many substitute products •Few large competitors •Seasonal Sales – Christmas, 1st June USA is the main market : 40% market share with 4% of world children Toy price structure 5% 20% Raw material 55% Labour 20% Administration Transportation 6
  • 7. OVERVIEW ABOUT TOYS INDUSTRYTOYS INDUSTRY : Maturity need to compete by lower price, high quality and their actractivenessMAIN SUPPLIERS : 7
  • 8. MATTEL BUSINESS STRATEGY – SBUs, StructureCore Mattel SBUs:Organization Structure 8
  • 9. MATTEL BUSINESS STRATEGY – SBUs, Structure MATTEL MANAGEMENT BOARD MEETING 9
  • 10. ISSUES : AUGUST 2, 2007 Recalled almost one million Chinese made toys because of potential hazard of lead paint AUGUST 14, 2007 Recalled over 18 million products due to the possibility of danger to children from detachable magnets 10
  • 11. ISSUES : Mattel faces the accuse of infraction of labor rights (children, working hours per week), Safety standards… 11
  • 12. BUSINESS STRATEGYGeneric strategy: Mix between Cost & Differentiation Lower price -Licensing by : with •Economy of + + Cartoon & Scales Movies •Move makers… factories to growing countries with lower cost 12
  • 13. MATTEL BUSINESS STRATEGY – B.C.G 80 Potential Competitive Advantages DIFFERENTIATION FRAGMENT Licensing with wellknown brands, value added. B.C.G 80 STALEMENT VOLUME 13
  • 14. BUSINESS STRATEGYInternationalization & Cooperation Strategy: -OUTSOURCING: Toy Parts GLOBAL STRATEGY - Invest oversea -ALLIANCES : - Standard products TRANSNATIONAL Walt Disney STRATEGY Wal Mart Toy R’Us …. INTERNATIONAL MULTINATIONAL STRATEGY STRATEGY 14
  • 15. MATTEL BUSINESS STRATEGY LOW THREAT OF NEW ENTRANTS • Time & capital required to establish a new brand name • Big existing players • Economies of scaleLOW POWER OF SUPPLIERS MEDIUM POWER•Low bargaining power OF BUYERS•Wide variety of Alternative •Effect to price•Cost based decision •Effect to R&D, Strategy GOVERNMENT HIGH THREAT OF SUBSTITUTE TAX, IPL,… •Many subtitute products •Different from price to quality •Different brands 15
  • 16. BUSINESS STRATEGY SWOT Reputation brand name Strong capital capacity S Have strong distributor network Effective Cost management Licensing with big companies W Lack of diversification : products Outsourcing management Quality control Fake products from China Fast growing economy in Asia O Asia market Hasbro recall M&A T Economic downturn Raw material price rising Children growing faster than ages Price attack from big suppliers : walmart… Educational products Competion & substitutes from internet, electronic toys… Unpredictable customer’s taste 16
  • 17. STRATAGIC ISSUES Outsourcing Production/sales Not Not without full quality Geographic is diversification diversification control not optimize products type products type Different Can not satisfy Can not satisfy Product quality ! Standards market needs market needs Recall Effect brand High risk High risk High risk images 17
  • 18. RECOMMENDATION •Revaluate Production Facilities location & Diversify manufactures and Suppliers •Rebuilt and strengthen Mattel Brands’s image •Research and plan to invest in new technologies, new product types with fit the toys growing trend : media, electronic & education toys… •Mattel would consider building new production plants in other growing countries in the context of China labor force price growing up. •Society & Environment sponsoring at areas where facilities locate to increase brand image and improve local resident about quality and safety standards. 18
  • 19. THANK YOU ! 19