Mattel Inc. company overview and business analysis

Marketing

General Economic Environment

Mattel Incorporated's general economic environment in the United States is favorable, since the income distribution among U.S. consumers of Mattel Inc. products are relatively higher compared to other regions where Mattel Inc. is internationally located. For example, Asian consumers purchase relatively less number of Mattel products because of the high costs of these products when they are marketed and sold internationally. Income is also affected in the current social and political states of countries wherein Mattel Inc. sells its products. Because Asian countries tend to have more social and political instability, there is also financial instability as a result. Thus, because of financial instability, income is lower, thereby resulting to lesser consumption of toy products, which is not considered a priority among Asian households and consumers. Therefore, there are higher economic returns for Mattel Inc. For its European, North, and Central America regions compared to Asia-Pacific and South-American regions.

Political and Legal Environment

The political and legal environment of Mattel Inc. is highly dependent on domestic and international policies that will be implemented or imposed upon the company's trade activities within and outside the country. A change in exchange rates or international policies about quotas or manufacturing policies can affect Mattel Inc.'s economic activities internationally. Politically, Mattel is potentially affected with the domestic issues that happened in the United States as a result of the World Trade Center bombing last September 11, 2001. This historical event is significant in Mattel Inc.'s operations since there had been an economic downturn when the bombing happened. However, the positive change in the U.S. economy resulted to a better economic disposition, which happened in the aftermath of the WTC bombing. Similarly, Mattel Inc.'s international activities are also affected by political strikes that happen in Asian countries, but are booming in China, wherein labor manpower and manufacturing companies for Mattel are increasing and prospering with its recent entrance to the international market.

Social and Cultural Environment

The social and cultural environment of Mattel Inc. is significant for the progress and success of the company in marketing its products. Mattel's products target the children as its market, with the parents as consumers. Its products are also divided into three main categories: for Girls, Boys, and Infant and Pre-School. This diversity is important for the parent consumers because this will help them buy toys and other Mattel products that are suitable for their children's age and gender. Mattel's cultural environment is very satisfactory, because it promotes cultural and racial diversity, as is evident in the different 'versions' of Barbie dolls that Mattel manufactured such as the Puerto Rican and African-American Barbie dolls (Prentice-Hall 2003). Thus, there is sensitivity and consideration in Mattel's treatment of the social and cultural environments of various nations that Mattel sells its products to.

Technological Environment

Mattel is extending its services in electronic services such as the production of electronic games related to Mattel's products. Mattel created a partnership with Microsoft Inc. To create a new "interactive environment" for children, aside from the toys that they buy from Mattel. One example of this 'interactive environment' is through the formulation of electronic games for girls who are avid Barbie dolls consumers. Examples of these interactive electronic activities are included in the web site Barbie.com, the primary site of Mattel's most important product: Fashion Fun, Your Backpack, Barbie Beat, Games, Barbie Pix, and Barbie Calendar. These electronic activities are educational and entertaining, and this is one successful way wherein children can enjoy Mattel products through the electronic media.

Economies of Scale

Internal economies of scale within Mattel Inc. are the partnership between Mattel Inc. And Microsoft Inc. And the formulation of electronic versions of all of Mattel's products such as Barbie, Matchbox, and Fisher Price toys and other collectible for children. The creation of these interactive games and activities resulted to a greater integration and knowledge of the consumers about the company's products and services because of the effective marketing and advertising that Mattel's web sites and electronic games can give to children. There is also a high return from the commercial economies that Mattel gets from the cheap labor it gets from its manufacturing companies in Asia, such as China, Indonesia, and other nations wherein labor and manpower is relatively cheap as compared to U.S. workers.