Mattel, Inc.

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SWOT Analysis

Internal Strengths
1. Leadership in the toy market
2. Trustworthy
3. Strong brands
4. Strong ethics and social responsibility
5. Strong financial position
6. Extensive global supply chain
7.
8.

Internal Weaknesses
1. Old-fashioned
2. Lack of innovation
3. Lack of quality control
4. Ineffective price control power
5. Narrow channels of distribution

External Opportunities
1. Usage of new technology
2. Wider usage of the internet and video games
3. Expanding into new world markets
4. Seeking new alliances
5. Targeting various age groups of children and young adults
6. Developing new products that will follow the customers from
younger age up to the high school level (example – iPads, makeup,
etc.)
7. Creation of a doll theme park
8. Introducing toy logos through kids’ clothing starting from the early
age
 9. Revisiting marketing tactics toward countries where Mattel
products were not popular or rejected previously by introducing
new fashions and new types of dolls to please the customers
10.

External Threats
1. Tough competition (throat-cutting)
2. Fast changing consumers’ preferences and life styles
3. Product liability issues faces by the company
4. Poor quality of raw materials that come from other countries and
used to make products
5. Declining sales due to economic recession
6. Rising cost of raw materials
7. Avalanche of fake products

Strategy Alternatives
1. To design a strategy that will drastically revamp company’s
quality control system in order to make the company a
leader in product quality, boost the sales and enhance the
image
2. To consider mass production that will reduce the cost of the
company’s products by providing more services available
at movie theaters, café, and restaurants.
3. To design a new promotional strategy to attract new
customers by writing brand-related novels, short stories for
TV programs, series, movies, as well as developing a
subsidiary brand for adult toy collectors.

Strategy Recommendations