Jill Barad's Case Study

Mattel is one of the major corporations in the United States of America (U.S) which specializes in the production of Barbie dolls, and it is one of the World leading company in dolls productions, controls the largest part market share of the world. The company is headed by Jill Barad, one of the few youngest female product manager(C.E.O) leading one of the large corporations. As other companies around the world, Mattel has its own strength and weaknesses. However, the major area of strength of Mattel corporation can be classified into four broad areas namely; Barbie dolls, the Hot Wheels brand, the Disney licenses, Bardie brand and the Fishers-Price line which is a toy line for children. In the year 1995, Fisher-Price earned the corporation revenue of more than $1 billion. The license given to the company in 1988 by the Disney which gave them exclusive rights on producing products resembling the characters in the kid movies earned a profit of $450 million from that line of collection only. The above four strengths which are the four key product of Mattel contributed an increase in the annual growth of 20% for the sales and the operating income to 38% in the year 1988 and 1995. As a result, Mattel earned the largest market share with 16% in the U.S as opposed to their competitors who have a market share of 8%.

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The key weaknesses in the Mattel's as depicted by observers are the company's goal of 15% of the growth earnings which is a challenge as the growth rate in 1996 seemed to be decreasing and most of its sales being stagnant with a time frame of eight years. The production of monotonous toys only based on the Disney movies is another weakness which affects not only the Mattel company but the whole industry as well due to their lack of creativity. It the role of the company to produce toys which would be related to future Disney films thus increases the chances of increased sales in the market. Additionally, the company mainly focuses on its established as well as its enduring brands instead of encouraging innovation within the firm, there likely to miss out on new market opportunities as observed in the case of video games.

Mattel's main goal is having a strategy which will help maintain a 15% growth earnings per annum. Also, the company intends to transform Barbie dolls product line into the most prominent and profitable brand of toys around the globe.

By being the leading seller of toys in the U.S and having a 16% share of the market as compared to the second best company in the industry with 8%, the company has gained a competitive advantage in the entire market.

Barad has, however, put some strategies which will help her attain the organization's goal of 15% growth earnings. First, expanding on the existing brands of the company which earns the company the highest profit level as compared to any other strategy. Second, since the company's market is mostly based in the U.S, Barad aims to create new markets overseas thus increasing the sales of the company. Third, the creation of new products which do not exist in the current market that is, board games and the boy's toys which are the major product line that the company has a weakness in investing in. Finally, cutting down on the costs thus increasing the company's total earnings. This can only be achieved by relocating the production process to countries such as China and Thailand where the cost of production is low.