Executive Summary
Team 2 has researched and completed a comparative analysis of Mattel’s supply chain design and related costs with that of its major competitor Hasbro and the toy industry. What follows, is a brief background of Mattel’s traditional (non-electronic game) sector, its key competitors and Mattel’s use of supply chain management concepts in addressing the competitive landscape to gain a competitive advantage. The global toy and game market grew by 7.2% in 2007 with a value of $106.1 billion and by 2012, is forecasted to have a value of $126.2 billion, an increase of 18.9% over 2007. The toy market is divided into three primary sectors, namely game consoles, game software and traditional toys and games. Traditional toys and games remain the largest segment, generating total revenues of $61.8 billion, equivalent to 58.2% of the market's overall value. Mattel recorded revenues of $ 5.65 billion in 2006 and $ 5.97 billion in 2007.
Mattel’s key competitors in the traditional toy industry include Hasbro, Bandai, Lego, The Middleton Doll Company, Atari, Electronic Arts, Blitz Games, Leapfrog Enterprises, Inc. and several others (Datamonitor).
Mattel is a designer, manufacturer, and marketer of traditional toy products. Mattel's products are sold directly to retailers and wholesalers in 150 countries in North America, Europe, Asia and Latin America. The average age of a Mattel product is six months before it is replaced (ALLBUSINESS). Mattel manufactures toy products in both company-owned facilities and through independent contractors. Mattel also purchases products from third parties which design, develop and manufacture those products. Mattel's principal manufacturing facilities are located in China, Indonesia, Malaysia, Mexico and Thai ...