Financial Statement Analysis of Mattel and Hasbro

Financial Statement Analysis of

Mattel Inc and Hasbro Inc

I. BUSINESS DESCRIPTION

MATTEL Inc. is an American toy manufacturing company established in 1945 by Harold "Matt" Matson and Elliot Handler. It is headquartered in El Segundo, California. They are branded as the largest manufacturer of toys in the United States. They manufacture popular brands like Fisher-Price, Barbie dolls, Monster High dolls, Hot Wheels and Matchbox toys, Masters of the Universe, American Girl dolls, WWE Toys, and the early-1980s video game systems.

MATTEL has the largest share of the market (Appendix 1: Table 1). The major competitors of MATTEL Inc. are HASBRO Inc. and JAKKS Pacific (JAKK). HASBRO is the manufacturer of major toy and game brands such as Monopoly, Transformers etc. MATTEL and HASBRO have different core segments. HASBRO makes a large of portion of revenue from board games like Clue, Monopoly and Scrabble; whereas MATTEL’s core business is dolls (Barbie). But, the two companies compete end-to-end over certain segments, as HASBRO’s Playskool goes after the same younger audience as MATTEL’s Fischer-Price division. JAKKS Pacific (JAKK) is a smaller toy manufacturing company, with licensing deals with Nickelodeon's Blue Clues and Disney's Hannah Montana. However, JAKKS Pacific is considerably smaller than MATTEL by market capitalization.

MATTEL had also found competition within its segmented markets. The smaller firms with specialized products are competing with several of MATTEL’s key brands. The Da Brat doll line is a major competitor against MATTEL’s Barbie. So are companies like Marvel Enterprises, who specialize in comic book products. Even retailer Wal-Mart, due to its diversity closed MATTEL -owned businesses such as Toys R’Us and FAO.

The diversity of products within MATTEL gives them the means to control the majority of the toy market. Blockbuster movies are also a key factor that determines their characterization of products and in turn hiked their growth...