Political

factors

Economic factors

Sociocultural factors

Technological factors

 Strong and reputable Brand Name (brand name stands up to its awards and recognitions) Strong customer base (Proven by the continuous patronage of customers despite of product recalls) Excellent variety of products for both boys and girls (Product lines include Barbie, Hot Wheels, Fisher-Price and American Girl) Mattel has been in the fore front of the toy industry for 60 years Strong online privacy policy (The company ensures the privacy of both its customers and suppliers. Information is reviewed before being released to the press.) Controls fate of Barbies main competitor, Bratz. (Product releases of Bratz usually happen after the release of latest Barbie products) Has excellent Global Manufacturing Principles Market share leadership (Mattel has been consistently #1 in stock growth rate with its competitors.)
Global Leader and Presence Sustainability (Mattel has been recognized as the top toy manufacturer for the last 60 years)

 Battered brand image over recent series of recalls Losing control of their products and company image due to the outsourcing of their manufacturing to third party overseas manufacturers They have little pricing power due to heavy reliance on Wal-Mart and Target Keeping childrens interest when they are growing into the tween demographic. Questionable Product Safety record (due to product recalls)

 Online and Video Game Market (Mattel could start releasing online and video games as an addition to their products.) Social Media (Mattel could use social networking sites such as Facebook and Twitter for product promotion.) Create new alliances with other companies to help market product Changing focus from traditional toys (Barbie/Hot Wheels) to electronic toys Moving production from China back to the United States or a more sustainable country Acquisitions (Mattel could acquire companies who offer children entertainment aside from toys to increase revenue and market share.) Emerging markets and expansion abroad Innovation (Development of new toys to offer children)

 Decreasing demand for toys (see Industry Analysis) Economic recession (The living standards of people dependent on wages and salaries are affected by recession. These families usually purchase toys from Mattel.) Raising oil prices (Fluctuations in oil prices affect input costs for making plastic based toys as well as distribution costs for transporting products from factories in Asia to other parts of the world.) Children are outgrowing toys at an earlier age Continuous improvement of Hasbro Inc. and its other competitors Cheaper technological devices Economic slowdown (Effects of economic slowdown, although not necessarily negative, affects the purchasing power of the consumers.) Exchange rate fluctuations (Currency exchange rate fluctuations may impact Mattels results of operations and cash flows. Inventory purchase transactions denominated in the Euro, British pound sterling, Mexican peso, and Venezuelan bolivar fuerte are the primary transactions that cause foreign currency transaction exposure for Mattel.)
Imitation

Key External Factors

TOTAL

Weight
1.0

Rating

Weighted Score
2.77

INTERNAL FACTOR EVALUATION

Key Internal Factors TOTAL Weight 1 Rating Weighted Score 2.71

Total weighted score of 2.77 indicates that the business has more than average ability to respond to external factors.

Total weighted scores significantly above 2.71 indicate a strong internal position.

Critical Success Factors TOTAL

Weight Rating 1

Score 2.90

Rating Score Rating 2.5

Score 2.15

Mattels score of 2.90 represents that it is competing fiercely with its competitors. From the eleven factors that we believe affects the success of Mattel; we put emphasis on Product Quality, Market Share and Customer Loyalty.

Analysis: (1, -1.5) Mattel is an organization that is competing fairly well in an unstable industry. The company should pursue competitive strategies.

SPACE
Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development

GRAND

SWOT

Product Development Weight AS TAS TOTAL ATTRACTIVENESS SCORE 2.72

Market Penetration Weight AS TAS 3.43

Upon assessing the internal and external critical success factors using QSPM, this suggests that both Market Penetration and Product Development are relatively attractive to be used by Mattel.

By leveraging their existing competencies while acquiring new capabilities through internal development and partnerships, Mattel should be able to develop relevant products and services that positively reposition them in kids worlds. From an offering perspective, they should pursue a development strategy which includes the following six subsystems, listed in order from easiest to most difficult to implement:

Traditional Toy/Game Enhancement High-Tech Toy Development Imaginative Exploration Content Creation and Community Mobile Networked Entertainment Physical Activity Immersion