The dominant strategy of manufacturers of Jura is the ability to create toys that cannot be easily copied by Asian manufacturers. To accomplish this, they play on several criteria, including the size of the toys. Indeed, the import of toys is carried out by sea, and transport containers can be very expensive if the product is bulky. Their second advantage is their response: they are capable of delivering a product in a fortnight, which is impossible for Asian manufacturers, as sea freight takes about four weeks.
A very high competitive intensity exists between firms in the toy market. Indeed, only 10 manufacturers compete for nearly 70% market share of the toy market. Each manufacturer wants to increase its market share; direct competition between firms in the toy market is pretty tough.
Also, there exists the threat of potential entrants. This threat translated into reality on the toy market when former subcontractors regained their independence. They now produce their own range of toys. The threat of potential entrants can cause considerable upheaval such as a price war. They must also beware of counterfeiting on certain toys.
Tags: Toy industry competition, New entrants in the toy industry, Jurassic Toys
[...] These firms also employ mo yen, the advertising giant. The third group consists of strategic national companies; we can take the example of France, which has three of the toy industry in the Jura: Clairbois, Smoby, Berchet. Here, advertising budgets are lower and the distribution networks are less extensive (specialty stores rather than supermarkets) By relying on the analyzes conducted during the previous three questions, proposing a series of possible strategies for manufacturers Jura In view of previous analyzes, the dominant strategy of Jura manufacturers is the ability to create toys that are not easily copied by Asian manufacturers. [...]
[...] For example, if you want a product to be referenced, it is necessary that it be known. Investment in television advertising represents an important part of corporate budget (22 million euros in France for Hasbro). The bargaining power of subcontractors is less important. Outsourcing enables companies to achieve their production cost. Moreover, they do not hesitate to change contractors if prices become too high. The lack of regulation in Asian countries does not allow subcontractors to impose their will on Western companies. [...]
[...] Jura manufacturers therefore specialized in larger toys and outdoor parks or baby. Their second advantage is their response: they are able to provide a product in a fortnight, which is impossible for Asian manufacturers because of ocean freight which takes about four weeks. Finally, their strategy may be based on the production of high level of technical toys (technological leadership), which can be performed by automated industrial tools, which also reduces the personnel costs which account for only 25% of net Business of Jura producers. [...]
[...] Ecological: Regarding the area of ecology, there is no information in the case. Legal: With regard to labor law, we cannot say that the business of outsourcing in Asia is respected. There is a semblance of regulation and most importantly, no control. But the toy industry employs about one million people in China. Companies do not hesitate to relocate if they can save on costs of labor Perform an analysis of 5 competitive forces of the toy industry. W hat key success factors in this tell you? [...]
[...] The customers are mainly from Western countries with a high purchasing power. The toy industry tends to focus very strongly. The top 10 global manufacturers control 70% of the total market. Socio-cultural: It is found that in the toy industry there is no differentiation between cultures. Children are influenced by fashion world that passes through the film and television. This standardization of expectations of children reduces the costs of research and development and production. Technology: With regard to technology trends, we can divide this part into two points. [...]
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