Caso Mattel
HKU810
LU JIANGYONG
TAO ZHIGANG
YU LINHUI
MATTEL’S STRATEGY AFTER ITS RECALL OF
PRODUCTS MADE IN CHINA
In the summer of 2007, Mattel, the largest toymaker in the US, saw its sales dip sharply when it recalled its Chinese-made toys several times. The recalls also led to public hearings in the
US Congress, which significantly affected its reputation.
Like other toymakers, Mattel had been relocating its production abroad and outsourcing the manufacture of parts and components. In 2007, Mattel produced 65% of its toys in China.1 In contrast to its competitors, however, Mattel understood the importance of quality control in the process of relocation and outsourcing. In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for production of its most popular products.
Nonetheless, the product recalls showed that quality control continued to be an issue. Should
Mattel reassess its strategy for organising production? Should it rely more on in-house production than outsourcing? Even if it stuck to its outsourcing strategy, quality control was more difficult to control in developing economies than in developed ones. Should it revise the geographical spread of its manufacturing operation? Mattel had a choice between outsourcing to economies such as China where quality control was a serious issue and outsourcing to more developed countries with better contracting environments.
Global Toy Industry
The value of the worldwide toy market was estimated at US$67 billion in 2006. 2 North
America, which made up 36% of the world market, was the largest toy-consuming region in the world. At 29%, Europe was the next-largest toy-consuming region, followed by Asia at
1
2
Banik, P.K.B.A. (16 October 2007) “Time for a Better Gameplan”, Businessline.
NPD Group (2007) “Toy Market in the World”,
LU JIANGYONG
TAO ZHIGANG
YU LINHUI
MATTEL’S STRATEGY AFTER ITS RECALL OF
PRODUCTS MADE IN CHINA
In the summer of 2007, Mattel, the largest toymaker in the US, saw its sales dip sharply when it recalled its Chinese-made toys several times. The recalls also led to public hearings in the
US Congress, which significantly affected its reputation.
Like other toymakers, Mattel had been relocating its production abroad and outsourcing the manufacture of parts and components. In 2007, Mattel produced 65% of its toys in China.1 In contrast to its competitors, however, Mattel understood the importance of quality control in the process of relocation and outsourcing. In the 1980s, it reversed its earlier strategy of outsourcing to factories in Asia by owning and operating some plants in Asia for production of its most popular products.
Nonetheless, the product recalls showed that quality control continued to be an issue. Should
Mattel reassess its strategy for organising production? Should it rely more on in-house production than outsourcing? Even if it stuck to its outsourcing strategy, quality control was more difficult to control in developing economies than in developed ones. Should it revise the geographical spread of its manufacturing operation? Mattel had a choice between outsourcing to economies such as China where quality control was a serious issue and outsourcing to more developed countries with better contracting environments.
Global Toy Industry
The value of the worldwide toy market was estimated at US$67 billion in 2006. 2 North
America, which made up 36% of the world market, was the largest toy-consuming region in the world. At 29%, Europe was the next-largest toy-consuming region, followed by Asia at
1
2
Banik, P.K.B.A. (16 October 2007) “Time for a Better Gameplan”, Businessline.
NPD Group (2007) “Toy Market in the World”,