Essay about Amazon.Com and Mattel - a Strategic Perspective

The ultimate responsibility for the product quality rests with the company that owns the brand9. Contracts between the corporations and the suppliers clearly stipulate the materials to be used and not to be used. For instance, lead-based paint for toys or azo-dyes for garments are forbidden10. The problem it seems is not with the contract but with the implementation. It is essential for Mattel to enforce stringent quality controls to catch any vendor who tries to trick them again. At the same time it is also essential for Mattel to ensure

The competitive rivalry in the toy industry is intense. Organizations try to sell through their own retailers and online instead of solely through other retailers. Flexibility and responsiveness to the market are

Lego is known for having small little colorful interlocking pieces that can be potential choking hazard. However when Lego came out with its new movie “The Lego Movie” in February 2014 the Lego profits have gone up drastically. Lego is estimated to make 4.5 Billion annually Finaly at number one we have Mattel.Mattel, was founded in 1945, and since then has produced brands such as Fisher-Price, Barbie, Monster High, Hot Wheels, Masters of the Universe, Little People, Power Wheels and WWE Toys. However despite the recent dispute with Jakks Pacific Mattel is still estimated to makeover 6.3 billion dollars in

This will include further investment in hiring skilled engineering personnel. Because SAI Toys creates unique products which may exclusively dominate a small segment of the market from which all of its revenue is derived, the introduction into the market of a competitor’s similar product with enhanced features and lower retail pricing may severely impact SAI Toys ability to generate sales and revenue (Butcher, 2011).

Mattel, Inc has the vision of being the world’s premier toy brand, for the present and the future. It currently sells products in over 150 nations. The company was founded in 1945 by Harold Matson and Elliot Handler. It has gone to be 30,000 employees strong working in 43 countries. Mattel, Inc includes a number of toy brands such as Barbie, Fisher Price, Hot Wheels, American Girl, Tyco, and others. In 2008, the company was recognized by FORTUNE magazine as one of the “100 Best Companies to Work For”.

Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage

LEGO,  like  most  companies  in  the  toy  industry  are  fighting  to  stay  profitable  in  this

Sales in Asia could help combat Mattel’s plateauing market in the United States. The company seemed like it was in a strong position.

In the past, the toy business was just an annex of the publishing industry. Little effort was invested in toys which were not even mentioned strategic plans. Now the toy industry is the second-highest profit maker in Marvel, generating over $20 billion in sales in 2003. The toy business is very promising in the future. However its percentage in revenue will still remain stable or slightly decrease, just as publishing will do, because licensing has such a strong possibility for growth. In addition, while the toy industry competition is too fierce to permit further achievements.

Mattel’s three largest customers are responsible for more than one third of the company’s revenue. With such a large portion of the company’s sales dependent on the these three customers any changes such as purchase reduction, favoring competitors or private label expansion, will have a significant impact on Mattel’s revenue. Also, with this limited customer base Mattel is hindered in with its ability to change prices.

An alternative strategy is for Mattel to expand into the technology market and add-on/re-innovate their existing product lines. Mattel has made many of the same products since it was established, with the exception of picture frames and doll furniture, which were short lived products. Barbie has changed a little bit, but other than that, the products have remained unaltered. In order to have a competitive advantage, Mattel needs to grow with the market. As of

With the advent of the information technology, specifically the internet, it is said that more and more companies are existing in the online world. The changes in the business market also allows customers to change and become more dependent on online stores and online shopping than go and find something in shopping malls or retail store. One of the existing and considered as the largest and competitive online shopping in the world is Amazon. In this report, the goal is to analyse Amazon based on the case study provided. The analysis includes the discussion of Amazon’s s strategic intent, main resources and capabilities. In addition, this will also include analysis of the resources and capabilities that give

Amazon’s core competencies are in its ability to effectively use and develop technology to drive site traffic and enhance the customer experience. Their distinctive use of website real estate coupled with their ability to leverage their brand and effectively use that leverage to deliver low prices and high quality products, makes them a leader in online retailing. Their partner brands and their ability to adapt and recognize deficiencies enable them to effectively cut out the middle man, or at the very least, partner with them.

As of January 2010, Amazon.com has three times the Internet sales revenue of the runner up, Staples. By offering a large amount of varied categories through its website and other international ones (Amazon.co.uk, Amazon.co.fr, and so on), it has managed to grow to a customer based company with over 30 million people. In addition, the online retail format enables the company to reduce costs of managing inventory (Amazon.com; online bookstore, 2008).

In the company’s initial stage, to compete with other company, he took a year to build website and databases. At the same time, Amazon faced many challenges, the most powerful competitors Barnes and Noble bookstore, and this is a struggle between tradition and modernity.