Case Study: Real Choices at Mattel 9/25/11 1 - Mattel Case introduction. The decision facing Mattel is whether to continue to produce their products internationally where cost are low, or produce them in the United States where costs are significantly higher but quality is better. Mattel might want to even reconsider going global if there sales are decreasing more internationally than in the United States. Mattel needs to determine how many of the products produced internationally were recalled versus the amount of products produced in the United States that were recalled.
Mattel also needs to decide how they are going to advertise their products in a way that will convince consumers in the external environment to buy their products, without having any uncertainty about the products containing hazardous objects that can harm their children. 2. Some of the most important factors in this decision facing Mattel is to first realize what consumers in the United States are looking for in a product and what consumers internationally are looking for in a product.
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Next Mattel needs to realize that they produced one of the most famous dolls around the world known as the Barbie doll, that was a big hit and every young girl had to have one. Mattel needs to take this into consideration when making their decisions so Barbie dolls aren’t being recalled next and leaving consumers even more unhappy with their company. Another important factor is social responsibly, Mattel’s focus is on children and they also need to keep this important factor in mind when making any type of decision regarding what they are going to do in the future. . An alternative to Mattel’s recall issues is to create a couple of new products that they think will be a big hit that will make up for lost sales from recalled products. They need to develop a whole new strategy for marketing their products that emphasizes on the safety and reliably of their products. Mattel should possibly think about discontinuing certain product lines that are causing them to have decreasing sales and replace these discontinued lines with their new product line.
Mattel should only take this thought into consideration if there new products are helping them to generate revenues and regain respect from consumers for producing good quality products. Mattel can also break the product line up and then sell the assets from it, if they don’t want to dispose of the whole product line. 4. As I mentioned above Mattel needs to determine if they want to have their products produced by producers in China or producers in the United States. They need to investigate into this problem and see which producer has the lowest recall rate and which producers seem to produce the highest quality products.
They should re-evaluate the design of their product to see if there are any flaws involved with the overall design that are causing products to be harmful to children. Mattel should also do some research about international countries’ economies, unemployment rates, and how high the demand for toys is before selling their products internationally. 5. Some ways I can implement my recommendations for Mattel is to have them re-evaluate the design of their products by making some minor adjustments to them that they think will be beneficial.
After they made some minor adjustments to the design of their products and they feel it will be effective they should then have the design sent to a producer in the United States and then to a producer internationally. After both of the producers have completed the product they should then compare the result of the two finished products and see if any improvements were made. A good way Mattel can get a better understanding of how international countries operate besides research is to take a business trip to one they wish to sell products too.