Successes, Failures and Practices of Mettel Background

Successes,Failures and Practices of Mettel


Mattelwas founded in 1945 by Elliot and Ruth Handler. Itis the worldwide leader in the design, manufacture and marketing oftoys and family products (Kettelkamp, 1998). Mattel’s best-sellingbrands includes Barbie, the most popular fashion doll ever produced,Hot Wheels, Monster High, American Girl, Thomas &amp Friends andFisher-Price brands, Little People and Power Wheels, as well as awide array of entertainment-inspired toy lines (Donahueand Nola, 2000).With worldwide headquarters in California, Mattel’s companiesemploy nearly 30,000 people in 40 countries and sell products in morethan 150 nations.


Mattelis now the world’s leading company in the leisure productsindustry, with a solid track record and a well-defined brightfuture.&nbsp The company generates strong cash flows.&nbsp Itsrecovery has been very strong record since the recession of 2008.Strong earnings have produced incredibly strong shareholder results.

TodayMattel controls 16% of the $20 billion U.S. toy market nearly doublethe share of its closest competitor andhas set five key company strategies: improving execution of theexisting toy business, globalizing the brands, extending the brands,catching new trends and developing people (Donahue et al., 2000).


Mattelhad to pull out of China market hence losing money. The failure toappeal in China has been explained as failure by Mattel to positiontheir products in a way that appealed Chinese girls and mothers andcompetition from the countless knock-off dolls on the market today.

Mattelalso lost money in China went they went into crisis due to qualityproblems. A lot of products were recalled due to poor quality(Queena, 2003). This was due to failure of the companies Mattel hadsub-contracted. Mattel now realizes it was not watching thosecompanies closely enough.

Areport published in China uncovered labor contract violations,excessive and illegal overtime, poor living conditions andenvironmental pollution by Mattel factories.

Dayto day practices

Mattel`sCorporate Responsibility mission is to positively impact people byplayingresponsiblythrough PlayingFair,Playing togetherto bring the world safe toys that grown-ups trust and children love,playing to grow throughefforts to work smarter and reduce impact on the environment andPlayingwith Passionby volunteering in communities to help disadvantaged childrenexperience the joy of play.


Donahue,A and Nola, S. (2000). How Mattel`s Brass Ring Turned to Lead.Los Angeles Business Journal,1.

Kettelkamp,S. (1998). ChattyCathy and Her Talking Friends.Schiffer Publishing.

Queena,S. (2003).Mattel`s Babes in Toyland Struggle to Gain Market Share.WallStreet Journal,November, 1.