Mattel's strategy for 1999 is totally different than 3 years earlier. The basic difference is that they understand the market trends.
The acquisition of Pleasant Company and The Learning Company shows that Mattel will produce more modern dolls and computer software for children.
With the acquisition of Pleasant Company they will also have the target group seven to twelve. The acquisition Learning Company will help Mattel to increase the sales with the software titles that they have.
The formation of an on-line store is the second element of the new strategy of Mattel. This will help to grow the volume of sales through internet.
Another difference in the strategy is the cost reduction by cutting 3000 jobs. This is definitely an emergency action, after the loss of $18 million during the first quarter of 1999.
Finally Mattel is going to develop a generation of interactive toys into an alliance with Intel.
All these changes show that Mattel has identified the mistakes of the past and is on the right truck. The strategy can be described as emergent, because fundamental changes take place in a short period.
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