Presentation done by David Orozco

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An Environmental Analysis for
Fisher-Price
David Orozco
Full Sail University
Project & Portfolio II: Business and Marketing
August 16th, 2020

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The STEEPLE Analysis (Include Citations)
SOCIOLOGICAL: Fisher-Price is usually set on targeting the millennial moms with or expecting
infant children. They market toys and baby essentials towards parents who have probably
already done plenty of research online ahead of time. The subsidiary of Mattel wants to primarily
target moms that were born between the years 1982-1994. (Zmuda, N., 2013)
TECHNOLOGICAL: Right now, the toy industry is trying to adapt to marketing towards a whole
new generation of parents. Christopher Sinclair took over as CEO in 2015 and since then been
juggling the company in his hands as he tries to bring new life into the company. A recent shift
in the company has been implementing The Mix Faire. It’s a day where employees of Fisher-
Price come together from around the world to present entrepreneurial talent to the Fisher-Price
leadership team and colleagues. (Feloni, R., 2016)
ECONOMIC: Fisher-Price is a subsidiary of Mattel. Its annual gross sales averaged the same
as the previous year. The toy industry is currently growing at an annual percentage rate at 5-7%
and is approximately over $80 billion. (Statista, 2014) worth Mattel’s stock market is at 11.69
which is currently down. Their industry is continually growing as consumer and market trends
tend to shift and reshape the future of toys. (M, 2017) Also, currently Fisher Price Toys Inc
sector is experiencing unbalanced demand and supply circumstance which causes financial
issues. These economic crises can trigger low production which has negative effects in the
industry.
ECOLOGICAL: The toy industry is known to act on environmental issues. Recently toys have
implanted new ways for toys to become more “green” and eco-friendly toys in regards for the
safety of children. Kids are likely to consume more eco-friendly toys. This is due to them being
taught to think greener at a young age, even though toys make up a small portion of the market.
(Katanich, D., 2020)
POLITICAL: Political factors also come into play with Fisher-Price and its advancements in
Taiwan's Fisher Price Toys Inc. industry. Political factors involving Fisher-Price have also been
known to take place in Taiwan as markets tend to rival against each other. Taiwanese federal
government concentrates on human capital growth in the industry. (Tallman, E., 2002)
LEGAL: Many laws and regulation are taken and must be followed in place when introducing a
new toy. United States currently has the strongest and strictest laws enforced and safety
guidelines with toys. This also takes into place toys that are manufactured around the world that
are imported and exported. Every company must comply with these laws for a toy to be put out
on the market. They must also go through over 100 safety tests. Laws companies in countries
must follow include the ASTM F963 which is the safety requirement that other countries must
abide by. (ASTM)
ETHICAL: Fisher Price has many ethical factors that they consider when producing toys that are
safe for infants and young children. They are partnered with businesses that are similarly

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committed to high ethical standards. These partners involved with Mattel must with the local and
national laws of the countries in which they operate. (Mattel Responds to Ethical Challenges)
The SWOT Analysis (Citations optional)
HELPFUL HARMFUL
INTERNAL
STRENGTHS
1. Fisher price has a strong brand
recognition and awareness. Being in
the toy industry since the early 1930s
has given them a strong legacy in the
industry.
2. Fisher-Price offers aggressive
advertising for their products. They
also have increased sales levels. As
of now, the company currently
produces six new toys a year.
3. Fisher-Price has its own R&D
facility. This is a section of the
company that focuses on undertaking
innovation of new products. Their
goal is to primarily focus on taking
new products to market. Primarily
adding products to the companies
bottom line.
WEAKNESSES
1. Stale products generate low sales.
One weakness of Fisher-Price is its
failure to innovate new products that
attract attention and improve sales.
Implementing creative ideas with
marketing and production team would
be necessary.
2. Fisher-Price has a weakness that
includes toy recalls. Recently a
massive order of recalls came from
China including products of Mattel.
3. Fisher-Price has shown internal
resistance to change as of late.
Expanding business overseas,
innovation of new products,
marketing ideas and more could be
used to their advantage.

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EXTERNAL
OPPORTUNITIES
1. Fisher-Price along with Mattel have
opportunities to innovate to products
that eliminate the threat of technology
having a negative effect on business.
This can be looked at as a necessity
for companies like Fisher-Price. Kids
today have shifted towards
electronics so gearing towards that
demographic can influence sales.
2. Fisher-Price has opportunity to
expand internationally and construct
business in pacific areas like Asia.
3. Forming new partnerships overall
helping their parent company
compete with Hasbro.
THREATS
1. The toy industry is highly
competitive. This is because the
consumers are price sensitive which
holds lower barriers for entry into the
market.
2. Strengthening of the US dollar.
Many toy corporations are losing
money operating oversees as the U.S
dollar grows stronger than most
foreign countries.
3. Technology. Recently customers
interests have shifted towards
products that involve electronics.
This has been shown to take part in
shifting kids to mature faster and drift
from traditional toy products.
Conclusions: (Include Citations)
Fisher Price has many strengths than can help them improve sales and increase
revenue. Frommy observation, its clear that Fisher-Price is resistant to change. The
company has been in business since the 1930s in which they have been successfully
building their brand awareness. With this they should focus on utilizing their R&D facility
to help in producing innovative products that can grab people’s attention. It has strong
marketing strategies that can be used in promotion. The toy industry is verycompetitive
where Fisher-Price is seeing high competition from makers like Hasbro.
When developing new products in the toy industry, one must oblige and enforce safety
guidelines. This also includes a plethora of safety tests before a toy can be introduced
on the market. Fisher-Price has done seemingly well producing eco-friendlytoys for
consumers. Kids are more prone to purchase eco-friendly toys since they are taught to
think green at a young age. After a massive toy recall that happened in China, Fisher-
Price as well as other toy companies have taken action on making sure they are
producing safe products for children. (Barboza, D. 2007)
Although there is room for improvement on their products, Fisher-Price has been very
successful on staying afloat in their public relation department. Despite dealing with
mass recalls and safety concerns in the past, the company has managed to get back on
their feet by funding their Consumer Product Safety Commission. (Barboza, D. 2007) I
don’t think its safe to say that Fisher-Price has a crisis anywhere in the near future.
Fisher Price’s health factor considers how they produce toys and what they can do to
prevent recalls. (‘Total recall for Mattel’, 2007)

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References:
In APA format, list each reference you used (at least five). Each reference in this section should
have a corresponding “short form” citation in the STEEPLE section or the Conclusions section.
‘Total recall for Mattel’ (2007) TCE: The Chemical Engineer, (796), p. 12. Retrieved
August 16, 2020 from
http://search.ebscohost.com.oclc.fullsail.edu:81/login.aspx?direct=true&db=a9h&
AN=27360578&site=ehost-live (Accessed: 17 August 2020).
ASTM International’s World-Renowned Toy Safety Standard (F963). (n.d.).
Retrieved August 16, 2020, from https://www.astm.org/toys.html
Feloni, R. (2016, July 28). 'There's no fear of failure': How an iconic 85-year-old
company is reviving its ideas and its profits. Retrieved August 16, 2020, from
https://www.businessinsider.com/fisher-price-management-experiment-mix-faire-
2016-7
Katanich, D. (2020, April 14). The three largest toy manufacturers are phasing out
plastic bit by bit. Retrieved August 16, 2020, from
https://www.euronews.com/living/2020/04/13/toymakers-appeal-to-eco-conscious-
generation-with-sustainable-changes
M. (Mattel.com) (2017, June 14). Mattel Unveils Plan to Reinvent Company and
Deliver Enhanced and Sustainable Growth. Retrieved August 16, 2020, from
https://corporate.mattel.com/news/mattel-unveils-plan-to-reinvent-company-and-
deliver-enhanced-and-sustainable-growth
PDF [Mattel Responds to Ethical Challenges]. (n.d.). New Mexico: Daniels Fund
Ethics Initiative.
Story, L., & Barboza, D. (2007, August 15). Mattel Recalls 19 Million Toys
Sent From China. Retrieved August 17, 2020, from
https://www.nytimes.com/2007/08/15/business/worldbusiness/15imports.html
Tallman, E., & Wang, P. (2002, April 22). Human capital and endogenous
growth evidence from Taiwan. Retrieved August 16, 2020, from
https://www.sciencedirect.com/science/article/abs/pii/0304393294011524
Zmuda, N. (2013, October 22). Fisher-Price Increases Digital Spending 50%,
Targets Millennial Moms. Retrieved August 16, 2020, from
https://adage.com/article/cmo-strategy/fisher-price-targets-millennial-
moms/244869