Mattel Case Study

3190 words - 13 pages

Mattel Inc., headquartered in El Segundo, California was the global leader in design, manufacture and marketing of toys and family products. Mattel toy lines included such best selling brands as Barbie, Hot Wheels, Matchbox, American Girl, Radica and Tyco as well as Fisher-Price brands including Little People, Power Wheels and a wide range of entertainment-inspired toys. Mattel sells their products in many stores such as Toys R Us, K-Mart, and Wal-Mart. Pretty much all of Mattel's sells come from the store outlets. In the year 2007, Mattel manufactured roughly 65 percent of its toys in China. Initially they used outside contractors but out of concern over protection of intellectual property at risk, Mattel operated its own factories in China starting in 1987. In addition Mattel contracted production to between 30 and 50 Chinese firms many of which had relationships with other subcontractors. In terms of competition, Hasbro is the second largest toy maker behind Mattel. They began in Hong Kong. Their toys and brands include G.I. Joe, Tonka Toys, Nerf Balls, Weebles and board games such as Scrabble, Candy Land and Monopoly. Their revenue in 2010 was $3.84 billion and about 50% of their sales came from Wal-Mart, Toys 'R' Us and Target. Hasbro's suppliers have to meet with international standards. Employees of Hasbro and ICTI auditors inspected vendors. They had no recalls for lead-paint, but had recalls related to burn dangers with its Easy-Bake Oven.JAKKS Pacific makes and sells action figures for World Wrestling Federation, die-cast and plastic cars, preschool toys, pens and markers, fashion dolls and pet products. They had revenue of $742.2 million in 2010 and 60% of sales came from Target, Toys 'R' Us and Wal-Mart. They avoided lead-paint recalls, but still recalled 245,000 battery packs for toy vehicles made in China.LEGO Group is the fourth largest toy maker. In 2009, they had sales of $2.2 billion. Their toys consisted of licensed products from television and movie releases such as Bob the Builder, Star Wars and Indiana Jones. They recalled 358,000 plastic trucks containing LEGO Duplo bricks.RC2 is one of the larger toy companies. They had revenue of $427.3 in 2010. They sell licensed products such as Thomas & Friends, Bob the Builder and NASCAR vehicles. They recalled 1.5 million Thomas & Friends wooden trains. This company was the least dependent on the three largest retailers; Wal-Mart, Target and Toys 'R' Us which accounted for 38.9% of sales.Mattel sells their products in many stores such as Toys R Us, K-Mart, and Wal-Mart. Pretty much all of Mattel's sells come from the store outlets. In the year 2007, Mattel manufactured roughly 65 percent of its toys in China. Initially they used outside contractors but out of concern over protection of intellectual property at risk, Mattel operated its own factories in China starting in 1987. In addition Mattel contracted production to between 30 and 50 Chinese firms many of which had...

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