Mattel Essay

625 Words3 Pages
Mattel’s China Experience: A Crisis in Toyland Case Study Analysis Introduction Mattel is a company that has been around for decades and has long relied on its brand name to sell toys. It leveraged the post World War Two economic boom to become a giant in the toy industry. The rise to the top of the industry included many management changes and controversy along the way. Having a positive public image and portraying characteristics such as caring about the safety and quality of their products has been the cornerstone of their success. Being able to acquire and maintain partnerships in the entertainment industry to market products, as well as solidify product image has also been a large part of the success for Mattel. Evolution of the electronic and digital media age, along with slow response to market change, and product recalls have proved to be an equation for the decline and struggles of this toy manufacturing giant. The technological factor in their remote environment has played a big role in taking business away from the consumer purchasing of toys. A technological breakthrough can have a sudden and dramatic effect on a firm’s environment (Pearce, J.). Synopsis of the Situation Mattel was once a giant not only in the toy industry, but across all industries worldwide. Damage to their image and brand name, decline in stock prices, impact of a changing external and global environment, slow market evolution, and product recall issues have sent the company on a rapid decline since 2007. (Trouble in Toyland). Key Issues Children across the world are not playing with traditional toys as much as in the past (Berk, C). The brand image of Mattel has taken a serious hit due to unsafe products and the product recalls. Changing external environment and the progression of the electronic media market has caused a decline in traditional toy sales. Define the Problem
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