Friday, September 27, 2019

Framework for Assessing the UK Toy and Game Industry Term Paper

Framework for Assessing the UK Toy and Game Industry - Term Paper Example The paper will describe the uses of a framework for penetrating in the retail toy segment of the United Kingdom. The company chosen for the paper is Mattel which is one of the biggest toy-producing companies internationally. The objective of the paper is to illustrate the opportunities served by the foreign market and measure the market efficiency for Mattel to launch its own retail outlet in the UK. Framework for Assessing the UK Toy and Game Industry In order to develop a framework, one needs to understand the vital aspects of business which are competitors, purchasers, suppliers, substitute products and market risks. Assessing these aspects can be beneficial to assist in developing an understanding of the competitive situation and the strengths of the competitive position in which Mattel desires to shift itself. With clear understanding of where its strengths are preserved, Mattel can take the advantages of its competencies to recover its condition of weakness and evade from taking risky strategies. Developing a framework is helpful for recognizing whether the products of Mattel have the ability to strengthen its foothold in the UK market. However, the framework must be quite instructive to identify the impression of competitors’ power, purchasers, suppliers and substitute products in the foreign market environment along with the market size, costs of entry, channel of distribution, and awareness of customers (Arnold, D., â€Å"Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize†). Competition among Organization The areas which will be covered under this topic are industry growth, concentration of competitors and level of differentiation in toy products. Industry Growth The toy market of the UK has numerous product groups with various opportunities and threats for foreign companies. The toy market segment comprises introduction of new technology into traditional toy-making process as a major drift (Euromonitor International, â€Å"United Kingdom - Entering the Toys Market†). The recent day phenomenon of business conditions can be observed to be partly ruled by strong competition from foreign toy producers which seek to gain bigger share in the local market. The demand of new toys at the production level has impacted by the fragile progress of disposable income of people in the UK. The low disposable income has decreased the spending power of customers and increased the

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