Mattel operates in one of the ever changing and developing industries in the business environment. The toy industry is characteristic of constant technological innovations and the need for integrating new ideas. These factors contribute to the relatively high levels of market competition (Key Note Publications, 2010). The industry further has three primary categories of toys. These main categories include traditional toys, casino-related games, and the most common video games. It is possible for every player in the industry to produce all the mentioned categories at the same time. For Mattel, the primary focus of the organization was aimed at traditional toys. However, in 2006, Mattel made a grant entry into the video game category of toys. It is during this time that the company launched free access to video games for its website visitors.
Since the early 2000s, video games have been increasingly taking the place of traditional gaming, thereby prompting toy companies to shift focus. These developments resulted from the popularity of the mainstream consumer segments that acquired or purchased devices that support online gaming. Therefore, to stay relevant and competitive as well as sustainable in the industry, toy companies such as Mattel saw it necessary to improve innovations and integration of video games in the company’s overall line of products (Oppenheimer, 2011). Therefore, it is important to note that video games hold the future success of the toy industry. However, this category also has subcategories designed to meet the needs and desires of different age groups.
Increasing demand for online casino games is another major trend that continues to shape the future of the toy industry though mostly targeting adults. The high demand for online casino games gained ground in 2008 during the economic collapse (Eadington, 2011). Although this is a short-term demand that only arises during times of economic constraints, it creates opportunities for growth. Finally, holidays also provide better chances for players within the industry to make profits as children come with a high demand for toys during these periods.
- Eadington, W. R. (2011). After The Great Recession: The Future of Casino Gaming in America and Europe. Economic Affairs, 31, 1, 27-33.
- Key Note Publications. (2010). Toy industry. Teddington, Richmond: Key Note Ltd.
- Oppenheimer, J. (2010). Toy Monster: The big, bad world of Mattel. Hoboken, N.J: John Wiley.