Toy's Inc

TOYS,INC

Toys, Inc. is a 20-year-old company engaged in the manufacture and sale of toys and board games. The company has built a reputation on quality and innovation. Although the company is one of the leaders in its field, sales have leveled off in recent years. For the most recent sex-month period, sales actually declined compared with the same period last year.

As an operational consultant, our task is to help Toys, Inc gain more gross profit by reduce unnecessary operation cost and cease the sale from declining with highly quality control finished goods, and marketing. First of all, we need to discover where the problem occur the most with our product which is to conduct a customer survey to find out whether itÐŽ¦s customerÐŽ¦s misusage or abuse of use or itÐŽ¦s manufacturing default. By learning the problem with our product, we could either provide a clear usage instruction to avoid misusage or improve product quality control to increase customer satisfaction.

Conduct a SWOT analysis can help a firm identify the strategy-related factors that can have a major effect on the firm. The ultimate goal is to identify the critical factors affecting the firm and then build on vital strengths, correct flaring weaknesses, exploit significant opportunities, and avoid disaster-laden threats. The ultimate goal is not simply to develop the SWOT analysis but to translate the results of the analysis into specific actions to help the firm grow and succeed. It serves as a solid foundation to identify subsequent actions in the marketing plan.

Figure 1 shows the internal and external factors affecting the market opportunities for Toys, Inc. Stated briefly, this SWOT analysis highlights the great strides taken by the company since its products were first introduced. In the companyÐŽ¦s favor internally are its strengths of a broadly experienced management team, innovative and high quality products, national distribution, experienced personnel, economies of scale in manufacturing, and continuous efforts in research and development. Favorable external factors (opportunities) include a stable mass market that recognizes the company for the quality of its products, that TOYS, Inc. is a leader in its field with a distinctive name, technological breakthroughs will enable production costs to be lowered, and innovative products are important to U.S. households.

Among unfavorable factors, the main weaknesses are that decisions might be hard to make since there are so many differing views in management, competitors offer cheaper products, people donÐŽ¦t associate the products with TOYS, Inc., turnover rates for workers can be high, inspection and rebuilding expenses may go higher, and the company needs to put forth more action into their research and development plans. Threats include a declining economy and people might not buy things that are not a ÐŽ§necessity,ЎЁ competitors can attempt to duplicate and make similar products for a lesser price, and households may be shifting towards buying more ÐŽ§usefulЎЁ products.

Figure 1. SWOT Analysis for TOYS, Inc.

Internal Factors Strengths Weaknesses

Management very experienced, broad, well sized hard to come to consensus because of differing views

Offerings innovative and high quality toys & games Similar products from competitors with competitive price. (Cheaper)

Marketing national distribution people still donÐŽ¦t associate the products with the company

Personnel Large firm with good, experienced employee. High turnover rate, self loafing.

Manufacturing economies of scale inspection and rebuilding expenses may go higher

R&D continuous efforts need to put forth more action

External Factors Opportunities Threats

Consumer/Social mass market, likely to be stable, reputation of quality products declining economy, people might not buy things that isn't a "necessity"

Competitive leader in the field, distinctive name in market competitors can attempt to duplicate and make similar products

Technological technological breakthroughs enable production costs to be lowered Equipment upgrade cost occurs.

Economic consumer income is still high,