Mattel incorporation
Mattel incorporation is one of the biggest toy manufacturers in the globe since 1945. besides toys, Mattel has started to make video games. Some of its popular products include hot wheels, fisher price toys, and Barbie toys. It has a market share of 10 %, with its major competitors being carters incorporation, Walt Disney co, Jakks pacific, Hasbro, summer infant, and Hasbro.
Mattel’s products are placed in toy stores in more than 160 countries, and it has operations in 40 nations employing over 30,000 staff. Managing a supply chain with that kind of scope is a puzzle, but thanks to its elaborate delivery systems. The global supply chain is one of the key success factors of any multinational corporation. It creates convenience for customers as the products do not necessarily need to be shipped long distances. With many available outlets, customers can get their products easily. Mattel products are sold to parents to bring joy to their children, implying that the entity needs to ensure that it is transparent and accountable at every stage in the supply chain before reaching the end-users. The toy sector is characterized by constant change as new brands come up every year, and consumers are constantly looking for the next big thing. Peter Gibbons, the company CEO, Says that Mattel’s global chain supply helps the company keep a constant flow of new and exciting products shifting from manufacturing plants to retailers shelves all over the world. Mattel deals with fast-moving consumer goods, but the company continues to find new approaches to stay ahead of the competition despite the challenges encountered.
Kids are extremely fickle consumers since a hot toy on one holiday could be the clearance stock by the time school closes for the summer. For this reason, the entity refreshes nearly 80 percent of its SKUs every year, thus creating logistic impediments that are unheard of in most industries. Besides, the toy business is seasonal, with huge sales been made during holidays. One of the greatest strengths in the mattels supply chain is the company engineering staff, who are well-versed in designing the production process that can be leveraged and scaled up during high demand seasons.
The company’s engineering strength is also critical in reducing costs throughout the production process. To this end, the company has managed to cut down its costs through automation of the production process.
The Mattel company supplies its products directly to the distributors who are mega wholesalers. These distributors sell products on behalf of the entity. They have distributors who are spread across the group in over 150 countries. Distributors assume extra responsibility for managing orders and returns, and they typically act as sales representatives of the company. They tend to go beyond being a middleman between retailers and producers. Additionally, they undertake market analysis, and they also constantly search for new businesses on behalf of Mattel. Distributors focus on a particular geographical region and market, which allows them to build strong relationships with the manufacturers. Unlike whole-sellers, they tend to have a robust affiliation with particular entities. They have the sole responsibility of ensuring that the mattels products are flying off the retail shops’ shelves. Mattel incorporation sells its products in multiple e-commerce stores, including Amazon, e-bay, and Alibaba.
E-commerce platforms gradually replace brick and mortar channels of marketing. Amazon, Alibaba, e bay are online behemoths that offer low prices and a high level of convenience to manufacturers and consumers. Consumers find it increasingly hard to go shopping in town centers, whereas with e-commerce platforms, they can order, make a payment, and the items get delivered to their doorsteps. Besides selling to third [parties e-commerce platforms, Mattel has responded to this crisis, and they have created their own e selling platforms, selling products directly to consumers worldwide.
Mattel’s e-selling platform has a wide range of merchandise, including Barbie signature line and hard-to-locating hot wheels toys. With its Barbie product line being the world successful popular fashion doll, more than 200 dolls are sold every minute, with 58 million sold annually. Selling online not only reduces the distribution costs but also enhances the visibility of the entity offerings.
Overall, the strength of the mattels incorporation supply chain creates a unique opportunity to drive new products in the market with greater efficiency than most of its rivals. The entity has invested heavily in technology by integrating digital and physical products, as seen in its latest products, the Barbie line, and hello interactive dolls.