Hot wheels at mettle: Reinventing the wheel Case Solution & Answer

Hot wheels at mettle: Reinventing the wheel Case Study Solution


Mattel a toy manufacturer and an entertainment company, which was founded in 1945, in America. It was the largest company operating in the global toy industry. The company has R&D and production lead team which forecasts the consumer demand. There has been a series of leadership changes at Mattle since 2015, to address the financial issues being faced by it.

Hot wheel toy of Mattle is among the highest selling toys throughout the world, in term of unit sold per second. Demand of hot wheel car is higher than the regular cars in the world. There is almost 100% brand awareness of hot wheels toy in the world, but an increasing availability of the digital devices has caused parents to worry about the decline in the demand of physical toys.

The nature of how children play is changing. New technologies have changed the way children once used to play. Rather than sitting in front of a computer or TV, children can now be active on cellular devices as well. In some instances, the new technology actually encourages more physical activity. Some of these children may also have more opportunities to explore and participate, in terms of having social interactions. Nevertheless, children are still able to engage in a variety of activities that have been traditionally unavailable (Elie Ofek, Andres Terech, Nicole Tempest Keller, 2020).

Problem statement

Demand and preference for physical toys of children is decreasing, as now children prefer the digital toys more.Mattlehas to make a decision regarding what it should do to move forward in the digital space as the children’s playing are shifting at a much faster rate than ever before. Children were highly switching from physical toys to digital ones. So, the company is in dilemma regarding whether it should manufacture mix play toys with both physical as well as digital features or should it continue with just physical toys. But the mix play idea is at the conceptual stage, and the company is well-aware of the fact that a mixed play innovation requiresa major financial and time investment. Mattel Inc., the parent company of Hot Wheels, has witnessed a decrease in its sales and net margin for  three years continuous years, due to which it is more concernedregarding what should it do for its future in the industry.

Impact of changing childhood play patterns from non-digital to digital toys on sales of Hot Wheels’ traditional toys

The change in technology has changed the way children play, but there’s no reason to forget the importance of physical toys. Digital toys have a wider range of affordability, making them more attractive to a younger generation. In addition, these devices often encourage kids to engage in more physical activities. For instance, children who are exposed to technology at an earlyage  are less likely to differentiate between physical and digital toys (David Kleeman, 2020).

Changing childhood play patterns from non-digital to electronic toys may lead towards a decline in the authentic play. A computer game can replace a stuffed animal, and a child can’t use his imagination to make up a story with a connected toy. Many critics worry that technology is replacing the traditional staples of playtime. But this view is not supported by the most recent research. According to Dorothy Singer, a pediatrician at the University of Michigan, “[digital toys] discourage creative and imaginative play.” The impact of digital toys on children’s play patterns is difficult to measure. There are many factors involved. However, the major influence of the shift is the fact that the technological products often displace non-digital toys in children’s lives. This has an effect on the way children learn and socialize. In the long run, children will be more comfortable with the use of digital toys, which will decrease the sales of physical toys, further decreasingthe revenue and profit of hot wheels toys.

Children are interacting with digital devices in the same way the adults engage with other media. They are also more likely to be surrounded by more digital devices. While these devices may be attractive to some, others may be concerned that they are disruptive to children’s traditional playing patterns. This research is important, but the effects on children’s play are hard to quantify. In the long run, the digital technology will change the way children interact with other things, which is not just applicable to a single country as the trend is changing globally…………….

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