A. G. Gilbert Case Essay

436 WordsApr 3, 20152 Pages
Gilbert Case Questions for Discussion 1. What was the toy industry like in the 1950 and before? A.C. Gilbert company was very successful toy making company back in the 1950’s. The competition was not good enough to compete with the high quality products that A.C. Gilbert was making at the time. Their top quality toys were very popular and that is why the company was among top 10 companies in the U.S. 2. How did it change beginning in the 1960 and going forward? Toy industry in the United States has changed very rapidly at the beginning of the 1960’s. Television and radio advertising became more popular bringing new products that were much cheaper and lesser quality than the A.C. Gilbert’s products. Toy stores were more interested in the low price products than a high quality products which made A.C. Gilbert company to lose their competitive advantage. 3. Discuss how the societal environment in the US culture was changing. How did the changes affect the toy industry and Gilbert? A.C. Gilbert company has suffered a big loss in sales and profit. A lot of money was spent on expanding their business. There was a high demand for new “hot” products, and also the company started offering toy for boys and girls, instead of only making erector sets, and toys for boys. 4. Discuss how the economic environment in the US culture was changing. How did the changes affect the toy industry and Gilbert? There was a higher demand for low cost, low quality toys that A.C. Gilbert couldn’t compete, until the point where the company introduced 50 new toys for different age groups and toys for girls and preschool children. Although the company tried to change and adapt to the rapidly changing industry, their low quality toys hurt the company a lot, because of the high return rate on some of the poorly built toys. 5. What was Gilbert’s distinctive competence and competitive

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