Case Study Toys Should Launch New Range Of Toys For 9-11 Age Group Or Not. Internal Environment

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Without tactically coming up with ways in promoting the new range of toys, Thompson Toys could face a serious downfall. The success in promoting new toys is the consequence of trustworthy and skilful marketing visions, exhaustive analyses and comprehensive planning. The SWOT analysis is used for strategic planning, marketing and product development. Therefore, the SWOT analysis can determine whether we should launch new range of toys for 9-11 age group or not.

Internal environment
Strength
Weakness l Good reputation l Having Efficient and Skilful design team l Issue on cash flow l Issue on products’ safety
External environment
Opportunity
Threat l Recent trend towards electronic toys l Customers loyalty l Other competitors enter the new market.

Weakness
• One of the most serious weakness is the cash flow. According to the statement of financial position in 2015, the amount of cash equivalents was € 21,000 and the trade receivable is € 4,065,000 in 2015. This reflect that the company can get profits on selling the products but cannot receive the money from the debtors. One of the reasons is that Thompson Toys will not chase them too aggressively because of avoiding to influence on the future sales. Although the sales amount is higher, most of retailers often do not pay until at least 60 days. Finally, this situation will influence on our company’s liquidity and will not have enough capital to establish new products. Therefore, the company should re-evaluate…

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