Mattel Inc. Capability Financial Analysis: Digital and Smart Technology Capabilities (Essay Sample)

Mattel Inc. Capability Analysis
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Introduction
Mattel Inc. has been known to be the largest developer of toys from long ago. In 1990, the company developed Barbie dolls as well as other toys (Mattel Inc.). These toys were in high demand increasing the revenue of the firm. Higher revenue implied that Mattel had a higher competitive edge and a greater market share. The significant market share was short lived after competitors developed computer games and since parents believed that computer games were more educational than Barbie dolls and toys (Jones, Pp. 259-275). After the decrease in demand for toys and Barbie dolls, the enterprise hired a computer technician and paid him $ 3.5 billion to develop new computer games to regain their market share. The company started to regain its competitive edge due to capabilities of digital technology and brand loyalty.
Mattel’s Digital and Smart Technology Capabilities
After the advancement of technology by Mattel Inc., the company regained its market share, but the revenue it made was still lower as compared to other years. After developing the new computer games, there was nothing different from their competitors, and therefore, Mattel stood at less chance of losing its customers (Cillo, Paola, Gianmario Verona, and Salvio Vicari, Pp. 111).
Mattel's Digital and Smart Technology Capability

Not easily copied

Without substitutes

 

Rare or unique

Valuable

No

 

Yes


 

No

 

Yes

Mattel’s Brand Loyalty
Despite the competition that was evident in the computer games industry, Mattel’s customers became loyal to the company since they trusted the company after they saw they could make good Barbie dolls.
Mattel's Brand Loyalty

Not easily copied

Without substitutes

 

Rare or unique

Valuable

Yes

 

Yes


 

Yes

 

Yes

Conclusion
In conclusion, due to the loyalty of the customers of Mattel Inc., they still had a sustainable competitive advantage ove...