Case Analysis Mattel

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Case Summary:

Mattel, Inc has the vision of being the world’s premier toy brand, for the present and the future. It currently sells products in over 150 nations. The company was founded in 1945 by Harold Matson and Elliot Handler. It has gone to be 30,000 employees strong working in 43 countries. Mattel, Inc includes a number of toy brands such as Barbie, Fisher Price, Hot Wheels, American Girl, Tyco, and others. In 2008, the company was recognized by FORTUNE magazine as one of the “100 Best Companies to Work For”.

Key Marketing Issues:

International marketing: International marketing is the application of marketing principles across the borders of countries. Since Mattel, Inc. sells products in over 150 nations, the company has to advertise their products in those countries and therefore actively participates in international marketing.

Importing: Importing means purchases goods and services from a foreign source. Mattel, Inc. imports stereoscopes from Mexico and China to be used in the ViewMaster products because there is no U.S. production of these items.

Outsourcing: Outsourcing is the subcontracting of a noncore business process to a third partner that specializes in that process. Mattel outsourced its die-cast production to subcontractors in China and was very profitable until the 2007 recalls of millions of toys because of high lead paint levels.

Joint Venture: A joint venture is a partnership between a U.S. firm and a foreign firm or government. Mattel Inc. is involved in numerous joint ventures. In 2003, Indiatimes.com teamed up with Mattel to create and market the largest on-line toy store in India. The toy store will carry Mattel brands of Barbie, Hot Wheels, Fisher Price and more.

Strategic Alliance: Strategic Alliance is defined as partnering with traditional rivals to create competitive advantage. Mattel entered a strategic alliance with Disney in 1988 when Disney granted Mattel the licensing rights to...
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