Analysis Of Mattel Industry

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The word toy was first used in the 14th century with its origin still unknown. A toy is defined as an object for kids to play with and is usually a typical duplicate or model of something. A toy engages a child’s fantasy and imagination to learn and build their world. A toy also provides pleasure and companionship to both children and the adults especially the female adults. Toys are the eye-catching diversion for young children and serve as the representation of the adult world of the older children. Mattel’s Structure Mattel industry is one of the known toy manufacturing industry in the Asian countries, especially in China. This industry gets its raw materials and marketing from China. Its production has majorly been influenced by the constant price decrement, increased concentration of supply amount in China. In the 2007 festive holiday, Mittal was faced with a great challenge in terms of its toy product value and sense of security like the use of lead paint and loose magnets which taunted the image of the industry and its brand honor. Even though Mattel industry is a large company that experienced a major drop in its sales in the year 2007, it is also discovered that Mittal industry introduced a mechanism of division of labor that made its …show more content…

The tradition of toys shows a high growth rate in China and hence provides a positive outlook and hence a room for expansion and new business venture for new toy companies. The production of traditional toys is cost competitive and transportation cost within China is considerably low. The management can stay in control by keeping the production as close to the main market as possible and taking charge of the division of labor to avoid unplanned decisions. The use of highly automated factories can increase price competitiveness and local sourcing of products (Yew Wong, Stentoft Arlbjørn, & Johansen,

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