Amazon.Com and Mattel - a Strategic Perspective Essay

Words: 1376
Pages: 6, from a strategic approach, is dominating the world-wide-web. They have become the world leader in online sales of books, music, videos, movies and other products and services. Amazon knew that the Internet could be used as a distribution channel, thus reducing their supply chain relations. By making these strategic advances, Amazon was able to achieve and sustain their competitive advantage.

After researching and reading the 2009 and 1997 Annual Reports, it was determined, that in order to achieve this recognition, they needed to acquire the United Kingdom and German online booksellers. By these acquisitions, they increased book sales in the European markets. They have also formed the following strategic partnerships: 1)
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Millions of toys were recalled due to the Chinese factories using lead-based paint on many of Mattel’s products. This soon became a serious issue with lawsuits from parents whose children were harmed or died as a result of lead paint being ingested. It cost Mattel over $30 million to recover the recalled toys. Additional money was spent in advertising and marketing to allay the fears parents were had about the household name and their commitment to product safety.
Legal issues were not the only battle Mattel was facing. The economy began its downswing and forced many low to middle-income families to watch their discretionary spending. Toys sales during the height of the Christmas season in 2007 were down and revenues were affected. In an effort to increase sales, after a slight increase in toy prices, many of the large retailers were offering in-store coupons and Mattel offered rebates on many of the company’s product lines. This was an effort to offset the declining sales and increase revenues.

References (1997) Letter to Shareholders. Retrieved from item=UGFyZW50SUQ9Mzc2NjQ0fENoaWxkSUQ9Mzc1Mjc5fFR5cGU9MQ==&t=1 (2009). Annual Report. Retreived from