Mega Toys
Autor: Jannisthomas • September 11, 2017 • 858 Words (4 Pages) • 565 Views
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has to make sure that all the seasonable products are produced and delivered on time. Additionally, the process of acquiring and managing licenses for toys’ in demand production has become crucial for the company. Other downside of the partnership with Wal-Mart is that MegaToys heavily relies on the production of cheap seasonable products and traditional toys, however changes in the consumer preferences have moved towards technological toys, game software and more expensive individual solutions for kids that bring added value. This will play a negative role for the future of the company.
Business as Usual vs. Innovation
Since MegaToys heavily rely on the Wal-Mart’s contract it is advisable to keep the giant’s partnership for the next cycle. Once they secure the order amounting $63 million they should start redesigning their strategy if they want to be competitive on the market. One way is to acquire a company for technological toys/games and develop new product line which will allow the company to meet the demand for such products and differentiate itself from the rivals. This will put the business strategy of the company in the analyzer class of Miles and Snow categorization.
Other option is to secure partnership with other major discounters on the market, such as Carrefour and Kmat. If they want to continue in the cost-leadership strategy they might explore other markets to import from besides China. As stated in the case doing business with China will become more and more expensive, thus options to switch to Vietnam or Pakistan might be a good decision. MegaToys has a competitive advantage by offering seasonable products, the greatest success being the Easter basket. Identifying other key Holidays and developing new offerings in that direction will increase company’s sustainability. Moreover, the company has the know-how and has built a very reliable system for control thus no huge investments are required.
The growing use of internet and growing number of people willing to order products online present another opportunity for growth to the company especially in the costumes’ business. The creation of online store will allow the company to achieve a global reach and will reduce the importance of the giant retailers.
It is time for redesigning the strategy – MegaToys must be ready for change on order to be successful in the future.
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