Case Study 2.Mattel Toys Recall

Provide an overview of the toys industry. The global toy market was estimated to be $71 billion business in 2007. About 36 percent of the global market was concentrated in North America(about $24 billion), but annual sales in this region were growing at a slower pace. However, the asia market had grew at 12 percent in 2006, and were expected to grow by 25 percent , especially in China and India.There are about 880 companies in the toys industry. The main key players such as Mattel, Hasbro, RC2, JAAKS Pacific, Marvel, and Lego. This industry were lead by Mattel and Hasbro. Big retailers like Wal-Mart and Target had become major players in the U.S. toy market. They also sold product to other toy companies, such as Mattel, Hasbro, and Lego, but also sourced toys from China. Bargaining power of retailer is strong. Main categories of the toy market available are Action Figures & Accessories , Art & Craft, Building sets, Dolls, Games/ Puzzles, Infant/Preschool Toys, Youth Electronics, Outdoor & Sport toys, and Plush Vehicles. The preference of end-users have changed. Nowadays, children are influenced by the It products such as video games. the traditional toys demand will decrease due to the earlier maturity.As the lifestyle of children has changed, they will require some unpredictable needs and requirement for the toys.Thus, the industry is highly uncertain for toys manufacturers to manufacture certain toys. The safety of toys and other children’s products falls within the jurisdiction of CPSC which was created in 1972 by congress in the consumer product safety act to “protect the public against unreasonable risks of injuries and deaths associated with consumer products.”.

The global toy market was estimated to be $71 billion business in 2007 and it has increased about 6% compared to previous year. About 36% of the global market is based on North America (about $24 billion), but the annual sales in this region were growing at a slower pace. On the other hand,