ALTION TECHNOLOGY Chapter 12 Read the case at the end of Champere. then b) conduct research (library, eto, to update knowledge about the case -- then c) complete the following outline (max 400 words) 1- Case Title 2- Mention five facts 2.1 2.2 2.3 2.4 2.5 3- Mention 3 main problems 3.1 3.2 3.3 4- Mention 3 strategies to solve the above three problems (think of yourself either as a consultant OR newly appointed CEO) 4.1 4.2 4.3 5. Final note-- assess the quality of your work AND your overall recommendation CASE FOR ANALYSIS How Mattel's Barbie Lost the War against the Bratz Doll The rapid pace at which the world is changing is forcing product development changes and stop buying the doll strategic managers at all kinds of companies to speed up Mattel's top managers decided not to rock the boat: they their decision making; otherwise they get left behind by left the brand and business model unchanged and lo- agile competitors who respond faster to changing cus- cused their efforts on developing new digital toys. tomer fads and fashions. Nowhere is this truer than in the As a result, Mattel was unprepared when a challenge global toy industry, in which vicious combat rages in came along in the form of a new kind of doll, the Bratz the doll business, worth over $10 billion a year in sales. The doll, introduced by MGA Entertainment. Many competi- largest global toy company, Mattel, has earned tens of bil- tors to Barbie had emerged over the years because the lions of dollars from the world's best-selling doll, Barbie, doll business is so profitable, but no other doll had since it introduced her over 50 years ago. 83 Mothers who matched Barbie's appeal to young girls (or their mothers) played with the original dolls bought them for their The marketers and designers behind the Bratz line of dolls daughters, and granddaughters, and Barbie became an had spent a lot of time to discover what the new genera- American icon. However, Barbie's advantage as best- tion of girls, especially those aged 7-11, wanted from a selling global doll led Mattel's managers to make major doll, however. It turned out that the Bratz dolls they de- strategic errors in the 2000s. signed met the desires of these girls. Bratz dolls have Barbie and all Barbie accessories have accounted for larger heads and oversized eyes, wear lots of makeup and about 50% of Mattel's toy sales since the 1990s, so pro- short dresses, and are multicultural to give each doll "per- lecting this star product was crucial. The Barbie doll was sonality and attitude.84 The dolls were designed to appeal created in the 1960s when most women were homemak- to a new generation of girls brought up in a fast-changing er her voluptuous shape was a response to a dated view fashion, music, and television market. The Bratz dolls met of what the ideal woman should look like. Barbie's the untapped needs of "tween" girls, and the new line took continuing success, however, led Mattel's CEO Bob off. MGA quickly licensed the rights to make and sell the Eckert and his top managers to underestimate how much dolls to toy companies overseas, and Bratz became a seri- the world had altered. Changing cultural views about the ous competitor to Barbie. role of girls, women, sex, marriage, and women working Mattel was in trouble. Its strategic managers had to in the last decades shifted the tastes of doll buyers. But change its business model and strategies and bring Barbie Mattel's managers continued to bet on Barbie's eternal up to date: Mattel's designers must have been wishing they appeal and collectively bought into an "If it's not broken had been adventurous and made more radical changes don't fix it approach. In fact, given that Barbie was the earlier when they did not need to change. However, they best-selling doll, they thought it might be dangerous to decided to change Barbie's extreme shape; they killed off change her appearance; customers might not like the her old-time boyfriend Ken and replaced him with Blaine