1. What business model and strategies made Mattel the industry leader?

2. What strategies have its rival, MGA pursued that have threatened its competitive position?

3. What new strategies does Mattel need to pursue to regain its competitive advantage?

Warfare in toyland

Mattel had enjoyed great success with Barbie, the world’s best-selling doll. In the 2000s, however, Mattel’s managers made major strategic mistakes. They hesitated to change Barbie while cultural values regarding the role of girls, women, sex, marriage and working women shifted the tastes of doll buyers. MGA Entertainment introduced the Bratz dolls, which appealed to girls age seven to eleven. These dolls quickly took off and became competitive with Barbie. Barbie managers rushed changes to Barbie, altering her “extreme” vital statistics and giving her a new boyfriend. They also introduced new lines of dolls that were imitations of Bratz dolls. By 2006, sales of Barbie had dropped 30%. Mattel brought back the old boyfriend, Ken. In November 2006, Mattel filed suit against MGA Entertainment, claiming that the Bratz doll’s copyright belonged to them, that the designer had worked for them at the time of creation and that they had applied for copyright protection at that time.