Analysis of the toy industry

Résumé du document

In the current economic situation, the lexical field declines through many adjectives such as unemployment, or crisis. The world is in an uncertain climate for the economic part but the social part too. It is during the Christmas period that we can forget theses bad news. The magic of Christmas represents a breath of fresh air with all those windows decorated with toys. That is why I choose Toy industry, an industry that everyone knows and who continues to inspire children and adults. If toy industry produces many dreams for children and their parents, for the toy manager it is more complicated because toy industry is an idol with feet of clay.

The competition is very intensive especially when the majority of sales are realized during the period Christmas. This context of strong seasonality does not permit some errors in toy manager's choice. Toy industry is one of the oldest of the business world and generates a lot of benefit. But the most interesting in this industry are the opportunities. It knows to bounce when it is necessary and studies several solutions to be and stay attractive. So, the analysis of toy industry will show a complete sector with its strength and weakness and between past and future.

Extraits

[...] After setting the groundwork, we will analyse toy industry in European Union. For this analyse we will use the Porter's model because is a complete model to describe the competition intensity of toy industry. This famous model can be able to examine the situation of an industry if it is easy or hard to entry such as a young company or evaluate the power relations existing in the market. Then we will show some limits to this model in making a criticism. [...]

[...] So companies should be the best on its own sector. To entry in the giant companies sector is very hard if not impossible, because their financial recourses are colossal. But money does not have the power. Many SMEs compose the toy market offering to consumer different ranges. It is niche market. In fact niche market is new opportunity for SMEs. The trend is the return value with the recession. Traditional toys such as wooden toy are new trend. E.g. in 1998 with yoyo. [...]

[...] The last entry barrier is the European legislation on many standards for toy industry. Chinese counterfeits and healthy problems for the children are pointing the finger by several associations such as ICTI-CARE, which create and implement code of conduct for its suppliers, starting with factories in China, and Hong Kong most toys are manufactured. The ICTI-CARE website lists what toy brand and toy factories have passed through their program and have received the ICTI-CARE Process Seal of Compliance. The European legislation has now hardened. [...]

[...] Retailers are dependant on providing products of an honest quality and it joined with the high level of product differentiation. Competitive rivalry in toy industry: These last force is the most important to know if the toy industry is a competitive sector. In toy industry, competitive rivalry is high. Firstly, there are 2 areas in toy industry. Indeed, Giants companies such as Mattel, Hasbro, Bandai and Smoby are a first competitive rivalry sector, and then there is SME sector. Obviously, a SME cannot compete a giant company. [...]

[...] The case of Toy R Us, it is a giant in the distribution of toy industry, it is inescapable. That is why Toys R Us can manage the number of references in its stores and especially the price to be present in Toy R US, because a toy presents in Toy R Us store has more chance to know the success and so therefore to generate benefit for the company. Richard Gottlieb has written an article in Playthings the business of play, on the 25 October 2009 need retailers to broaden counts so that the consumer sees the toy industry as a mix of the wild, wonderful and surprising. [...]