Case Study 2.Mattel Toys Recall

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Provide an overview of the toys industry.

The global toy market was estimated to be $71 billion business in 2007. About 36 percent of the global market was concentrated in North America(about $24 billion), but annual sales in this region were growing at a slower pace. However, the asia market had grew at 12 percent in 2006, and were expected to grow by 25 percent , especially in China and India.There are about 880 companies in the toys industry. The main key players such as Mattel, Hasbro, RC2, JAAKS Pacific, Marvel, and Lego. This industry were lead by Mattel and Hasbro. Big retailers like Wal-Mart and Target had become major players in the U.S. toy market. They also sold product to other toy companies, such as Mattel, Hasbro, and Lego, but also sourced toys from China. Bargaining power of retailer is strong. Main categories of the toy market available are Action Figures & Accessories , Art & Craft, Building sets, Dolls, Games/ Puzzles, Infant/Preschool Toys, Youth Electronics, Outdoor & Sport toys, and Plush Vehicles. The preference of end-users have changed. Nowadays, children are influenced by the It products such as video games. the traditional toys demand will decrease due to the earlier maturity.As the lifestyle of children has changed, they will require some unpredictable needs and requirement for the toys.Thus, the industry is highly uncertain for toys manufacturers to manufacture certain toys. The safety of toys and other children’s products falls within the jurisdiction of CPSC which was created in 1972 by congress in the consumer product safety act to “protect the public against unreasonable risks of injuries and deaths associated with consumer products.”.

The global toy market was estimated to be $71 billion business in 2007 and it has increased about 6% compared to previous year. About 36% of the global market is based on North America (about $24 billion), but the annual sales in this region were growing at a slower pace. On the other hand, the market in Asia grew 12 % in 2006 but the growth is expected to grow 25% in 2007. A larger part of the growth will be expected from China and India. The toy industry in US had a large number of players. The industry was dominated by a few main players like Mattel, Hasbro, RC2, JAAKS Pacific, Marvel and Lego. The leaders were Mattel and Hasbro. Then the retailers like Wal-Mart and Target had become the major players in the US toy market because they also sourced toys directly from China and the toys are often sold under their own brand names. The toy markets in the US were categories into multiple segments like Action Figures & Accessories, Arts Crafts, Building Sets, Dolls, Games/Puzzles, Infant/Preschool Toys, Youth Electronics, Outdoor & Sports Toys and Plush Vehicles. Among all the segments, Infant/Preschool toys is the largest followed by outdoor & sports toys and dolls. However, video games is remarkably growing compared to the traditional toy industry. In addition, about 60% of the toys sold in the world are made from China.

Global toy market has dominated the market and the sales have been estimated around $71 billion in the year of 2007. The sales have increased by 6% compared to the previous year.around 36% of the toy global market was based on North America which comes to around $24 billion, however, the annual sales in this region were growing at a slow pace. Other than that, in Asia, the toy market grew 12% in the year of 2006 however the growth is expected to grow 25% in the year of 2007. China and India were the expectation of the larger part of the growth. In US, there are a large number of players in the toy market industry. The main players that dominate the toy market were Mattel, Hasbro, RC2, JAAKS Pacific, Marvel and Lego, however the leaders were Mattel and Hasbro. Retailers such as Wal-Mart and Target had become the major players in the US toy market because they also sourced toys directly from China and the toys are often sold under...
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