Companys corporatediversification strategy the

This preview shows page 10 - 12 out of 16 pages.

Company’s Corporate/Diversification StrategyThe success of Mattel Inc. is partly owed to its differentiation strategy. Mattel Inc.differentiates its domestic and international products by adopting demographic and geographicallocation preferences. The strategy has allowed the company to remain competitive in its industrythrough the strength of its existing products. The company also differentiates through innovativeproducts regarding consumer’s growing health concerns; this has led to cost leadership andstrong customer loyalty. Also, Mattel Inc. through broad differentiation strategy is able toposition its products’ offerings in ways that they can stand out; this has helped the company inreducing pressure on the need for heavy investment in marketing.Business/Competitive StrategiesBetween 2000 and 2007, the global toy industry experienced a significant shift owing tothe rise of video games that replaced physical toys followed by a shift in consumers’ preferences.With the increase infusion of technology into traditional toys, children’s playing patterns arecurrently changing, and Mattel Inc. as toy manufacture is increasingly losing its market share. In2000-2007, Mattel’s brands including Barbie was under attack from competitors like LeapFrog,Hasbro, and MGA, and the company responded by broadening its product lines; this resulted inincreased revenue in the fiscal year 2006 (Edery & Mollick, 2008).Mattel Inc. is also currently focusing on strengthening its partnership with major playersin the industry. Additionally the company is increasingly placing emphasis on productinnovation. In a strategy to expand its distribution channels, the company is creating partnershipsand collaborative relationships with online merchants like eBay. Additionally, the company’s
STRATEGIC PLAN PART 111innovation cycle, which normally stands at 18 months, but it is currently trying to reduce thecycle to between 6 and 9 months. While the identified competitive strategies have worked in thepast for Mattel Inc.; however, with the present stiff competition, it is unlikely that the strategieswill work in facilitating Mattel’s leadership in the future.International StrategiesMattel’s international strategy aims at boosting operations on the global market through aspecial emphasis on the digital market. The company is currently eyeing the Chinese, Indian, andIndonesian markets. The company’s international strategy’s in the identified markets is throughstructural simplification that is aimed at streamlining manufacturing and marketing costs as wellas optimizing stock keeping. Through the strategy, the company was able to achieve 40%targeted savings in 2016, which represented $650 million (Shirazi, 2016). Though the strategy,the company expects to see more benefits in the years to come.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 16 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
Dr. Akello Ernest
Tags
toy, Mattel Inc

Newly Uploaded Documents

Show More

Newly Uploaded Documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture