Pest analysis of mattel

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Pest analysis of mattel

Mattel closed its last American factory, originally part of the Fisher-Price division, in Mattel turns 60 this year, with much of that time spent at the forefront of the toy industry. Staying power such as that, leads to brand recognition: The brand remains very popular among customers.

This long history has also allowed ample time to develop effective corporate strategies. This includes an integrated focus on the customer. Mattel also follows a code of ethics, as well as requiring ethical actions of their suppliers.

Such a move also helps ensure the positive perception of their company continues. Finally, Mattel contributes to the communities in which it operates, particularly to causes benefiting children. It makes it very easy for stakeholders to support a company that will reciprocate the support.

Specifically, Mattel has a handful of very recognizable brands.

Pest analysis of mattel

Other products include Hot Wheels and American Girls. Further, Mattel has merged with or struck licensing deals with a number of other established brands, including Disney, Fisher Price, Nascar, and even Microsoft.

Finally, Mattel has been considerably successful venturing into international markets in recent years. First, product availability has been improved in specific market thanks to collaborative efforts with international firms, specifically Bandai Co. Many of the decisions that have led to trouble can be attributed to this fact.

One frequently occurring mistake is that of unprofitable mergers and acquisitions. While some mergers, such as that with Fisher Price, have proved profitable, others have cost the company severely. The most concerning piece of news for Mattel, however, must be the slipping popularity of their core product, Barbie.

As ofBarbie dropped out of the top five selling dolls. Opportunities The American toy market is becoming increasingly saturated and competitive, along with a downward shift in age of when children abandon tangible toys such Hot Wheels and Barbie for more interactive and technological products.

This makes for little opportunity domestically for Mattel if they continue with the same product line. Barbie has become an extremely recognizable brand worldwide, and has been selling very well in the markets it has been introduced to, namely Europe and Latin America.

An alliance with an Asian company, Bandai, should also prove very beneficial as numerous eastern countries open their markets to western goods.

Pest analysis of mattel

This market has been left largely untapped, and offers a huge increase in customer base. Another positive signal for international sales is the weakening dollar. Furthermore, the company does not experience the downside to a weak dollar in the form of overseas imports and production, as new corporate strategy has reemphasized in-house manufacturing.

This has already forced Mattel to enter, and may force Mattel to further their involvement in the technological realm, a product category in which the firm has performed very poorly. Targeting children with internet sites, however, brings about extra concerns.

Mattel must be very careful to protect their legal and moral reputations by respecting the privacy of the children and their families, which is put in jeopardy every time the website asks a minor to provide information. Other threats include those that have affected most firms in recent years, including the lackluster economy following September 11th.

The national recession has led to more frugal spending, and decreasing returns by a majority of companies. Such instability can lead to wary investors, and the firm could find itself having trouble generating funds. Finally, the firm has experienced a recent cultural backlash; to some degree here at home, but very dramatically in some locations abroad.

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This presentation illustrate the Mattel's strategy case study. Mattel Company Profile - SWOT Analysis: Mattel lost its position as the top global traditional toy company in , as continued declines across Mattel Company Profile - SWOT Analysis Our site uses cookies to improve functionality.

(the SWOT analysis) to evaluate business strategies and marketing opportunities for Mattel Inc. First, I focus my External analysis of Mattel Inc. with the PEST and the the Porter’s Five Forces Model.

Evaluation of Mattel’s Business Strategies -