In the toy industry, Mattel is one of the world leaders with their line of Barbie dolls. However, they've faced competition from MGA Entertainment with their Bratz dolls since the 1990s. Which of these statements is true about the strategic group in which these companies compete? a. The two companies occupy different strategic groups and likely will havevery different competitive forces and different strategies. b. The companies are dealing with the same competitive forces as all othercompanies across the toy industry. c. As toy companies, they both have the ability to quickly pursue the toy truck market with minimal investment. d. By competing in the same strategic group, the two companies are dealing with customers who view their products as direct substitutes for each other

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Business

Myles Ellison

8 May, 22:47

In the toy industry, Mattel is one of the world leaders with their line of Barbie dolls. However, they've faced competition from MGA Entertainment with their Bratz dolls since the 1990s. Which of these statements is true about the strategic group in which these companies compete? a. The two companies occupy different strategic groups and likely will havevery different competitive forces and different strategies. b. The companies are dealing with the same competitive forces as all othercompanies across the toy industry. c. As toy companies, they both have the ability to quickly pursue the toy truck market with minimal investment. d. By competing in the same strategic group, the two companies are dealing with customers who view their products as direct substitutes for each other

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Tyrell Mcgee · Answer 1

d. By competing in the same strategic group, the two companies are dealing with customers who view their products as direct substitutes for each other

Explanation:

Mattel and MGA Entertainment are direct competitors, and when it comes to the doll market, even more so because each company is offering a product that is almost a perfect substitute of the other.

Both Barbie dolls and Bratz dolls are toys that appeal mostly to young girls, and that have a fashion element to them. This is the same situation as Sony and Microsoft in the videogame console market.