Did you know?
In 2020, Mattel’s doll segment had gross sales in North America amounting to 770.6 million U.S. dollars. The company had net sales of 4.58 billion U.S. dollars that year.
Mattel Creations was founded in 1945 by Harold “Matt” Matson, Ruth and Elliot Handler. The company initially sold picture frames then dollhouse furniture. Matson soon sold his share to the Handlers due to poor health. In 1947, the company has its first hit toy, “Uke-A-Doodle”.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct an SWOT analysis by Mattel.
Mattel At A Glance – Mattel SWOT Analysis
Company: Mattel Inc
Founders: Ruth Handler | Elliot Handler | Harold Matson
Year of establishment: January 1945, Hawthorne, California, United States
CEO: Ynon Kreiz
Headquarters: El Segundo, California, United States
Employees (Dec 2020): 32,100
Ticker Symbol: MAT
Annual Revenue (Dec 2020): US$4.58 Billion
Profit net income (Dec 2020): US$126.6 Million
Products & Services: Barbie | Hot Wheels | Fisher-Price | American Girl | UNO | Mega | Thomas & Friends | Polly Pocket | Masters of the Universe | Monster High
Company Website: www.mattel.com
Top Mattel Competitors
Competitors: JAKKS Pacific | Spin Master | The LEGO Group | Vtech | Funko | Famosa | Giochi Preziosi | Playmobil | MGA | Moose Toys | Hasbro | Walt Disney | Pixar | McFarlane Toys
Mattel SWOT Analysis – SWOT Analysis Of Mattel
SWOT Analysis Of Mattel analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Mattel SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Mattel SWOT Analysis. Below Is The Detailed SWOT Analysis Of Mattel.
Mattel Strengths – Mattel SWOT Analysis
1. Strong brand Portfolio: Mattel has in its collection many of the most famous brands in the world of toys. Its portfolio of brands includes several of the most popular brands for children’s toys. These include the renowned Barbie, Hot Wheels, and American Girl etc. Mattel has created a variety of powerful global brands that provide it with an edge in the market
2. Worldwide Presence: Mattel offers a solid international marketing system that has many customers. Mattel is in more than 40 countries and markets their merchandise through retail stores as well as E-commerce. This wide distribution network lets Mattel the ability to broaden its business and decrease the risk of business.
3. Licensing agreements: Mattel has signed agreement for licensing with strategic intent with numerous entertainment companies that allow to promote its brands using trademarks and other characters. For example, Mattel has strategically partnered with Disney for the purpose of establishing relationships with the most famous Disney characters. These alliances have contributed to Mattel increase its brand’s reach and help increase revenues.
Mattel Weaknesses – Mattel SWOT Analysis
1. The concentrated number of customers: Mattel is heavily dependent on big retailers such as Wal-Mart and Target to make up the bulk of its revenue. In the fiscal year 2015, around 40% of the company’s total sales came from most important customers for Mattel, which are the top 10. This dependence on a handful of retailers’ business risks degrades Mattel’s bargaining strength.
2. Toxic Toys Scandal: In 2007, Mattel had to recall several of its toys after an European retailer discovered signs of lead paint on Mattel toys. Mattel’s own investigation showed that lead paint was present found in other products. This led Mattel to recall more than one million toys. This could impact the image of the brand and the confidence of customers.
Mattel Opportunities – Mattel SWOT Analysis
1. Changes in HTML0 Technology generates demands: With an technological advancement, the demands for toys and games that are driven by technology has grown and is driving to create new trends in market trends. Toy manufacturers must adapt to the new digital age and integrate their brands as well as transform them with technology to meet the increasing demand.
2. The demand for games and toys: Toy and games market has experienced strong growth in recent years across the globe and is projected to grow at a rate of more than 6% over the next five years. Mattel is well placed to benefit from the growth potential in the games and toys market.
3. Cost saving program: Mattel created and implemented a cost savings program to increase the operation efficacy and enhance its profitability. The company implemented certain structural changes to its workforce, and also increased efficiency when it comes to offshoring and outsourcing tasks to reduce costs. The programs may help boost profits for the business.
Mattel Threats – Mattel SWOT Analysis
1. Changes in the rate of exchange for currency: Mattel has operations in more than 40 countries, and around 43% of its net sales are generated by customers from abroad. Mattel is a foreign-owned subsidiary and distributes to other countries, and consequently is subject to fluctuations in rates of exchange.
2. Counterfeit and duplicate items: Mattel has created numerous popular brands across the world and, as a result, there are numerous counterfeit and duplicate items of most well-known brands like Barbie as well as Hot Wheels. These products are particularly plentiful throughout China. The presence of these products in the marketplace affects the brand’s image and can impact revenues.
3. The strictest government regulations: Toys are designed and made to be used by children, so special care should be given by the manufacturer in terms of the product’s design and materials are involved. Additionally, these regulations could vary based on the country , and it can increase the costs of compliance.
Mattel SWOT Analysis Overview Template
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