case analysis 192

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please read the case below first, and state your own opinion about that. Also, I have attached the group analysis, be sure also to make comments on the group analysis. Please don’t copy from other website or copy directly from the text. Just write in your own words.

Here is the group analysis:


First, Dan needs to think about the markets around the globe that would be the most beneficial to expand into. He would need to research demand for his products and consider other factors (discussed in #2 and #3) that will determine where he should venture into. Once Dan decides on a new geographic market, he would need to study the competition and compare what they’re offering to what he would be introducing into the market. This could be used as a marketing technique in which he could focus on the quality and durability of Top-Flight Toys’ products. Continuing the topic of deciding on a new geographic market, Dan needs to analyze the availability of labor in prospective countries. You don’t want a country with extremely high unemployment since that usually implies low buying power among a population, but you also don’t want to enter a market that has a shortage of labor. He would also need to look into the cost of labor for a plant supervisor and employees if he planned on producing the toys somewhere within the new market. Next, Dan would need to analyze any additional cost that he would incur if he were to start producing smaller versions of his toys for other markets while simultaneously keeping the same sized products for US markets. Would he be able to modify his current equipment, or would he need to invest in new capital?


The countries that Top-Flight toys should begin selling their products in should be countries with a high GDP. The main determinant in calculating GDP is a country’s consumption, which expresses the citizens’ buyer power. Excluding the United States, the current top six countries with regards to GDP are Japan, China Germany, the United Kingdom, France, and India. Maintaining a product line that emphasizes high quality requires, as noted in the reading, higher income customers to fund. The combined potential market of these six countries without any regard to per capita income is 3,067,460,000 people. Japan, however, might be a country to consider not planting deep roots in. Japan is currently experiencing deflation that has resulted in over $1.2 trillion in economic shrinkage since 2012. The country to plant the deepest roots in is going to be India. India is a newly industrialized nation and has had extensive success in growing economically. Top-Flight toys may not have the resources to expand into all of these markets immediately, so it would be wise to explore India’s market first to generate income rapidly to fund even more expansion.


Along with the countries mentioned in our response to Question #2, Top Flight Toys should consider selling their products in child dominated locations. or countries with an increasing birth rate. They may also want to focus on Spanish speaking countries, since the Spanish alphabet is similar to the English alphabet. This idea would result in fewer modifications for the blocks with letters on them. When speaking in shopping terms, Top Flight Toys should sell their products in places whose target market is children. This may include a toy store or a department store in the toy section, or even craft shows since these toys are wooden and unique. They may also sell them in general stores or small family run businesses. When we think of the toys that were handed down to us as kids, we also think of the wooden heavy-duty toys. Most likely, generations before us didn’t have stores like Toys “R” Us like we had as kids. They had the small-town family run businesses that would make and sell their own products. They didn’t have the cheap plastic toys you buy from department stores that would break as soon as you bought them. Top Flight Toys may also want to keep focusing on their website because online shopping is a booming industry. They may want to add a feature on their website where people can type in their zip code and it can locate the nearest store with the product they want. With this feature, customers don’t have to spend money on the expensive shipping cost that was mentioned in the passage.

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