This presentation illustrate the Mattel's strategy case study

1. When you were child,
What was your most expected ?
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2. CASE STUDY
CORPORATE
STRATEGY
NGUYEN XUAN DAM I VU THANH LOAN I LE HAI BINH I NGUYEN THUY NINH I MATHILDE BRUGIER
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3. INTRODUCTION
Founded in 1945 by Harold “Matt” Matson &
Elliot Handler. Their names smushed together
make Mattel
Mission : “Create The Future Play”
Value : “Play with Passion, Play Together, Play Fair and Play to Go”
THE BEST & LARGEST GLOBAL TOYS COMPANY !
2010 Total revenues : 5.85 Billion USD
78th Best Company To Work For – Fortune Magazine 2010
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4. THEIR BRANDS
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5. INTRODUCTION
5 Plants in China
1 Plant in Thailand
1 Plant in Indonesia
36% Market 29% Market 1 Plant in Malaysia
24% Market
2% Market
1 Plant in Mexico
7% Market
65% products from China !
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6. OVERVIEW ABOUT TOYS INDUSTRY
TOYS INDUSTRY
•Fad driven •Compete by electronic games, internet…
•High risk
•Low switching cost
•Many substitute products
•Few large competitors
•Seasonal Sales – Christmas, 1st June
USA is the main market : 40% market share with 4% of world children
Toy price structure
5%
20% Raw material
55% Labour
20% Administration
Transportation
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7. OVERVIEW ABOUT TOYS INDUSTRY
TOYS INDUSTRY : Maturity need to compete by lower price, high quality and their
actractiveness
MAIN SUPPLIERS :
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8. MATTEL BUSINESS STRATEGY – SBUs, Structure
Core Mattel SBUs:
Organization Structure
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9. MATTEL BUSINESS STRATEGY – SBUs, Structure
MATTEL MANAGEMENT
BOARD MEETING
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10. ISSUES :
AUGUST 2, 2007
Recalled almost one million Chinese made
toys because of potential hazard of lead paint
AUGUST 14, 2007
Recalled over 18 million products due to the possibility
of danger to children from detachable magnets
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11. ISSUES :
Mattel faces the accuse of infraction of labor
rights (children, working hours per
week), Safety standards…
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12. BUSINESS STRATEGY
Generic strategy: Mix between Cost & Differentiation
Lower price -Licensing
by : with
•Economy of + + Cartoon &
Scales Movies
•Move makers…
factories to
growing
countries with
lower cost
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13. MATTEL BUSINESS STRATEGY – B.C.G 80
Potential Competitive Advantages
DIFFERENTIATION
FRAGMENT Licensing with wellknown
brands, value added.
B.C.G 80
STALEMENT VOLUME
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14. BUSINESS STRATEGY
Internationalization & Cooperation Strategy:
-OUTSOURCING:
Toy Parts
GLOBAL STRATEGY
- Invest oversea
-ALLIANCES :
- Standard products TRANSNATIONAL
Walt Disney
STRATEGY
Wal Mart
Toy R’Us
….
INTERNATIONAL MULTINATIONAL
STRATEGY STRATEGY
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15. MATTEL BUSINESS STRATEGY
LOW THREAT OF NEW ENTRANTS
• Time & capital required to establish a new brand name
• Big existing players
• Economies of scale
LOW POWER OF SUPPLIERS MEDIUM POWER
•Low bargaining power OF BUYERS
•Wide variety of Alternative •Effect to price
•Cost based decision •Effect to R&D,
Strategy
GOVERNMENT
HIGH THREAT OF SUBSTITUTE
TAX, IPL,… •Many subtitute products
•Different from price to quality
•Different brands
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16. BUSINESS STRATEGY
SWOT
Reputation brand name
Strong capital capacity
S Have strong distributor network
Effective Cost management
Licensing with big companies
W
Lack of diversification : products
Outsourcing management
Quality control
Fake products from China
Fast growing economy in Asia
O
Asia market
Hasbro recall
M&A
T Economic downturn
Raw material price rising
Children growing faster than ages
Price attack from big suppliers : walmart…
Educational products
Competion & substitutes from
internet, electronic toys…
Unpredictable customer’s taste
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17. STRATAGIC ISSUES
Outsourcing Production/sales Not Not
without full quality Geographic is diversification diversification
control not optimize products type products type
Different Can not satisfy Can not satisfy
Product quality !
Standards market needs market needs
Recall
Effect brand High risk High risk High risk
images
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18. RECOMMENDATION
•Revaluate Production Facilities location & Diversify manufactures and Suppliers
•Rebuilt and strengthen Mattel Brands’s image
•Research and plan to invest in new technologies, new product types with fit
the toys growing trend : media, electronic & education toys…
•Mattel would consider building new production plants in other growing
countries in the context of China labor force price growing up.
•Society & Environment sponsoring at areas where facilities locate to increase
brand image and improve local resident about quality and safety standards.
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19. THANK YOU !
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