Foster The Revolution In Toy Industry

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Foster the revolution in toy industry Routes to foster the toy industry revolution (1) Reconceiving our products – Toys There is a ratio that relates price to performance in every industry: X units of cash buy Y units of value (Harvard). Hong Kong toy players should work hard to radically improve this value equation of toys. To achieve this, toys should be reconceived and to accomplish joy of use. Nowadays, consumers are expecting high quality toys which can be whimsical, tactile, informative, educational, and just plain fun. Also, the shortened childhood and attractiveness of surfing on the Internet may decrease the demand of toys by children. To overcome all these challenges, toys should not only be simple toys anymore. Besides the core benefits, it should provide even more marginal utility to each consumers, in order to bring the children back to the world of toys. How the toys could be reconceiving? Value and product innovation is the best solution. As fancy designs and gimmicks becoming the essential ways to attract buying, Hong Kong toy players should seek to commercialize each invention so that a new toy is able to offer performance characteristics to consumers that exceed their expectations. (a) Integration of Cost Leadership/ Differentiation Strategy Product differentiation is highly needed for our toys to obtain the competitive advantage, so that Hong Kong toy makers can enhance their bargaining power. Furthermore, Hong Kong toy makers should also prolong their traditional competitive advantage – relatively low cost (compared to the U.S. and Japan, Hong Kong has a relatively low operation costs after the majority of Hong Kong makers have set up production facilities offshore, mainly on the Chinese mainland). Therefore, the integration of cost leadership/ differentiation strategy should be suitable for the toy players in Hong Kong to

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