Mattel SWOT Analysis
Mattel SWOT analysis
Strengths
Strong brand portfolio. For the past 69 years Mattel has developed some well-known core brands such as, Barbie, Hot Wheels, American Girl, Thomas & Friends and Fisher-Price to become the largest toy company in the world (Hartline, M. & Ferrell, O.C., pp. 458). According to the company one Barbie is sold every 3 seconds and at least 12 dolls are owned by girls between the age of 3 and six. Because of the high acceptance of the brand, Mattel has been able to maintain a competitive advantage in new and existing markets.
Profitable licensing agreements and partnerships provide additional revenue sources. Mattel has form licensing agreements and partnerships with companies such as Disney Enterprises, Viacom International, Warner Bros., WWE Wrestling as well as Crayola. These partnerships allows Mattel to capitalize on the trademarks, characters, or inventions of the licensor in products Mattel sells as well as build strong relationships and increase revenue.
Worldwide distribution network. Mattel’s guiding principle, “Everyone Plays,” has allowed the company to understand business opportunities worldwide and develop products that shows the diversity of the various cultures. Currently, half of Mattel’s revenue comes from global operations outside the U.S., which will continue to present the greatest increase in the international markets (corporate.mattel.com). Mattel is located in 40 countries and territories. This allows the company to target different customers segments as well as diversify its business operation risk to a number of sales channels across different countries. In the United States, Mattel operates 16 retail stores and have plans to open more in Orlando, Florida and North Carolina in 2014 with Tennessee following in 2015. In Europe, Latin America, Asia, Australia and New Zealand Mattel sells directly to retailer and wholesalers. The products are also sold through its website and through agents and distributors
Strengths
Strong brand portfolio. For the past 69 years Mattel has developed some well-known core brands such as, Barbie, Hot Wheels, American Girl, Thomas & Friends and Fisher-Price to become the largest toy company in the world (Hartline, M. & Ferrell, O.C., pp. 458). According to the company one Barbie is sold every 3 seconds and at least 12 dolls are owned by girls between the age of 3 and six. Because of the high acceptance of the brand, Mattel has been able to maintain a competitive advantage in new and existing markets.
Profitable licensing agreements and partnerships provide additional revenue sources. Mattel has form licensing agreements and partnerships with companies such as Disney Enterprises, Viacom International, Warner Bros., WWE Wrestling as well as Crayola. These partnerships allows Mattel to capitalize on the trademarks, characters, or inventions of the licensor in products Mattel sells as well as build strong relationships and increase revenue.
Worldwide distribution network. Mattel’s guiding principle, “Everyone Plays,” has allowed the company to understand business opportunities worldwide and develop products that shows the diversity of the various cultures. Currently, half of Mattel’s revenue comes from global operations outside the U.S., which will continue to present the greatest increase in the international markets (corporate.mattel.com). Mattel is located in 40 countries and territories. This allows the company to target different customers segments as well as diversify its business operation risk to a number of sales channels across different countries. In the United States, Mattel operates 16 retail stores and have plans to open more in Orlando, Florida and North Carolina in 2014 with Tennessee following in 2015. In Europe, Latin America, Asia, Australia and New Zealand Mattel sells directly to retailer and wholesalers. The products are also sold through its website and through agents and distributors