Business, Essay Topic: Business Strategy - Critical Thinking Mod 4 The world has changed into a borderless one as consumers and suppliers carry out transactions in international markets. The whole world is like a market where buyer and sellers meet to exchange goods and services. A global strategy acts as a strategic guide for a business in this fast changing globalized world. By following these strategies, a company can make its place in the international market and it can position its products in these markets as well.
Global strategies include the level of market existence required for a company, most advantageous as well as profitable locations to choose for setting up the company and concentrating on and improving the competitive advantage to capture a larger market share. Mattel is the largest toy producing company of the world. Its products include the all time favorite Barbie dolls through which it revolutionized the toy industry. The reputation of Mattel`s corporate responsibility was at a peak when it had to recall nearly nineteen million toys which were made in China due to possible paint hazards and tiny magnets which had the possibility of being swallowed.
Mattel had to face a loss of approximately $40 million and also had to face additional regulations from US as well as Chinese authorities (Mattel issues new massive China toy recall, Web). The importance of global strategy can be seen in companies like Mattel as it is the worldwide leader of toys and other family products. The products of Mattel are sold in more than 150 countries. The global strategy of Mattel includes its strategy for new product development.
Toy manufacturers have to continuously come up with new products which have a universal appeal attracting children from all over the world. Mattel markets products in nearly 80% of the global market and 20% to remaining individual markets of different countries. An example is when Mattel launched a new Barbie doll; it did so in 59 different countries and marketed it in 35 different languages. Mattel used this global strategy to ensure a loyal customer base from all over the world. This global strategy of Mattel is further supported by retail giants such as Wall Mart, Target etc.
The Global market is extremely important for a company like Mattel because the target market for Mattel is children and children all over the world have similar product preferences. Any changes in one single market will have the same affect on other global markets as well. The customer base of Mattel is spread over the world and therefore, it must launch new products and develop strategies which are applicable to the global market. This global market orientation of Mattel has been quite profitable as more than 40% of the company`s sales come from international markets other than United States.
It has been found out that these strategies have been so successful that products of Mattel such as Barbie, is sold every three second in one of the global markets served by Mattel. Therefore, there is a lot to learn from the global strategies adopted by Mattel (Mattel: Global Market Strategy, Web). Works Cited: "Mattel (Global Marketing Strategy). " YouSigma - Great Informational Website for Professionals, Homemakers, Students, and Elderly.
N. P., n.d. Web. 15 Nov. 2012.. "Mattel issues new massive China toy recall - Business - Consumer news | NBC News. " Breaking News & Top Stories - World News, US & Local | NBC News. N.P. , n. d. Web. 15 Nov. 2012.. "Mattels China Experience: A Crisis in Toyland - Harvard Business Review. " Harvard Business Review Magazine, Blogs, Case studies, Articles, Books, Webinars. N.P. , n. d. Web. 15 Nov. 2012..