Why to Invest in Mattel
Mattel
Stephanie Amabile
BUS 521
Mattel is the world’s #1 toy maker with more than 30,000 employees and more than $4 billion in sales. A well-established core product portfolio has set Mattel’s established position in the toy market much higher than their competitors. Its products include Barbie, Fisher-Price toys, Hot Wheels and Matchbox Cars, American Girl dolls books, and licensed Disney and Sesame Street products are just a few that have helped them reach such great profits throughout the world. Although Mattel leads the industry, it recognizes the complexity of staying on top in a highly competitive and shifting business. While keeping their sales outlets current, toy companies must constantly seek to achieve the next big hit. In addition the rising pressure of big-box retailers, the Internet, and catalog sales have affected the direction of the industry in more ways than one. Technological innovation has forced tech companies to be on their toes and keep changing with new advancements. Even toy companies are going through the same challenges, trying to adjust to the dynamic nature of the toy market while customer needs and preferences are constantly changing. Toy companies have to smarten up and use technology to attract the customers especially when consumer spending has been slowing down. Mattel has outperformed in this area compared to its competitor, Hasbro, who in the recent quarter seemed to put up a good fight, but didn’t come close in comparison, having to cut numerous jobs and falling into debt. With the announcement of partnering with numerous entertainment partners such as Disney, Nickelodeon and Warner Brothers, Mattel gained the right to produce film based toys which will continue to build their strong brand recognition that they work for. Mattel has always been able to stay one step ahead of Hasbro, but in the third quarter they definitely jumped way ahead of any expectations that they had been put up to. Mattel’s revenue surged 4% to
Stephanie Amabile
BUS 521
Mattel is the world’s #1 toy maker with more than 30,000 employees and more than $4 billion in sales. A well-established core product portfolio has set Mattel’s established position in the toy market much higher than their competitors. Its products include Barbie, Fisher-Price toys, Hot Wheels and Matchbox Cars, American Girl dolls books, and licensed Disney and Sesame Street products are just a few that have helped them reach such great profits throughout the world. Although Mattel leads the industry, it recognizes the complexity of staying on top in a highly competitive and shifting business. While keeping their sales outlets current, toy companies must constantly seek to achieve the next big hit. In addition the rising pressure of big-box retailers, the Internet, and catalog sales have affected the direction of the industry in more ways than one. Technological innovation has forced tech companies to be on their toes and keep changing with new advancements. Even toy companies are going through the same challenges, trying to adjust to the dynamic nature of the toy market while customer needs and preferences are constantly changing. Toy companies have to smarten up and use technology to attract the customers especially when consumer spending has been slowing down. Mattel has outperformed in this area compared to its competitor, Hasbro, who in the recent quarter seemed to put up a good fight, but didn’t come close in comparison, having to cut numerous jobs and falling into debt. With the announcement of partnering with numerous entertainment partners such as Disney, Nickelodeon and Warner Brothers, Mattel gained the right to produce film based toys which will continue to build their strong brand recognition that they work for. Mattel has always been able to stay one step ahead of Hasbro, but in the third quarter they definitely jumped way ahead of any expectations that they had been put up to. Mattel’s revenue surged 4% to