Quantum Toys Cases
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Case 3: Quantum Toys
The initial competitive advantages of Quantum Toys were producing high quality toys with long- term value.
The main macro-environmental issues which they faced were the shift in lifestyle from conservative 50’s to the swinging 60’s reflected the preference for toys. Kids are mor interested in dolls, action figures and racecars more than the toys the company made. Another change in behaviors of the parents is that they bought many lower-priced presents for the children at Christmas instead of buying special, expensive toys. These changes refer to Social-culture in PEST model. Also, at that moment, TV became more popular, so many firm chose TV advertising to promote their product. This belongs to Technology change. Finally, there was a shift in the retailing of toys- away from small independent toy stores and towards large discount stores. This refers to Economic change.
Some of the changes I consider to be appropriate for them were:
Expand their range of products and have the toys for girls.
Advertise on TV.
The changes were not suitable:
Produce poor quality products.
Fire sales team and pushing the products through wholesalers and agents.
Downsize too many employees and made the in- house expertise reduce dramatically.
The company lost its way because they followed the trend and produced poor quality toys with cheap price which are completely different from original images they had built in the first place.
The internal factor made the firm so willing to frequently change its operation is the decision made by the son of the founder. Quantum Toys was a family business. Therefore, most of the decision in developing the company relied most on the owner. He wanted to change to adapt to the changing in environment.
To adapt to the changing environment, the firms have to do marketing research to know how the market have changed to have a fully understanding of the market. This combine with knowing what exactly their competitive advantages, resource and capability, then they will survive.