JAKKS Pacific, Inc
Strategy Overview The strategy of Jakks Pacific, Inc, as stated in their annual report, can be divided into two categories, which are its Business Strategy and its Growth Strategy.
Business Strategy Jakks Pacific's business strategy is multi-faceted. The first aspect of the company's business strategy is based upon researching and developing their own exclusive proprietary brands and marks (Jakks Pacific, Inc., 2018). Second, Jakks Pacific seeks out and subsequently licenses various in-demand trademarks for the purposes of utilizing them through distribution and sales at a cost that's lower than if the company had developed them or owned them outright (Jakks Pacific, Inc., 2018). An additional benefit is that the company …show more content…
Lastly, the company sells everything through toy and mass-market retail chain stores, supply stores, toy stores, wholesalers, and so forth.
Growth Strategy The growth strategy of Jakks Pacific is divided into six different aspects, which are the following: Expand Core Products; Enter New Product Categories; Pursue Strategic Acquisitions; Acquire Additional Character and Product Licenses; Expand International Sales; and Capitalize On Their Operating Efficiencies (Jakks Pacific, Inc., 2018).
Porter's Three Generic Competitive Strategies One way to better understand the strategy of Jakks Pacific is to classify it based upon Porter's Three Generic Competitive Strategies, which are: Cost Leadership, Differentiation, and Focus. The cost leadership strategy, as with each of the other two of Porter's generic strategies, has the end goal of the organization achieving a competitive advantage (Clarke, 2012). There are two ways that Jakks Pacific can accomplish this under the cost leadership strategy. The first is to work towards growing their profits by lowering their overall costs and …show more content…
Expanding its core products can consist of its research and development department improving upon existing products and creating brand-new innovative products, in which Jakks Pacific's ongoing proprietary technology is implemented in these aforementioned products. Entering new product categories also can mean expanding the product offerings of the company, which has the potential to make it stand out from its competitors. Next, pursuing strategic acquisitions can mean buying smaller start ups or companies that have highly-unique technology or products that can benefit Jakks Pacific's future offerings. Lastly, acquiring additional character and product licenses can grant Jakks Pacific the ability to offer exclusive brands that are highly in demand that their competitors can't offer. Currently, Jakks Pacific has license arrangements with Nickelodeon, Disney, and Warner Brothers, for example, but they must gain more exclusive licensing deals (Jakks Pacific, Inc.,
Strategy Overview The strategy of Jakks Pacific, Inc, as stated in their annual report, can be divided into two categories, which are its Business Strategy and its Growth Strategy.
Business Strategy Jakks Pacific's business strategy is multi-faceted. The first aspect of the company's business strategy is based upon researching and developing their own exclusive proprietary brands and marks (Jakks Pacific, Inc., 2018). Second, Jakks Pacific seeks out and subsequently licenses various in-demand trademarks for the purposes of utilizing them through distribution and sales at a cost that's lower than if the company had developed them or owned them outright (Jakks Pacific, Inc., 2018). An additional benefit is that the company …show more content…
Lastly, the company sells everything through toy and mass-market retail chain stores, supply stores, toy stores, wholesalers, and so forth.
Growth Strategy The growth strategy of Jakks Pacific is divided into six different aspects, which are the following: Expand Core Products; Enter New Product Categories; Pursue Strategic Acquisitions; Acquire Additional Character and Product Licenses; Expand International Sales; and Capitalize On Their Operating Efficiencies (Jakks Pacific, Inc., 2018).
Porter's Three Generic Competitive Strategies One way to better understand the strategy of Jakks Pacific is to classify it based upon Porter's Three Generic Competitive Strategies, which are: Cost Leadership, Differentiation, and Focus. The cost leadership strategy, as with each of the other two of Porter's generic strategies, has the end goal of the organization achieving a competitive advantage (Clarke, 2012). There are two ways that Jakks Pacific can accomplish this under the cost leadership strategy. The first is to work towards growing their profits by lowering their overall costs and …show more content…
Expanding its core products can consist of its research and development department improving upon existing products and creating brand-new innovative products, in which Jakks Pacific's ongoing proprietary technology is implemented in these aforementioned products. Entering new product categories also can mean expanding the product offerings of the company, which has the potential to make it stand out from its competitors. Next, pursuing strategic acquisitions can mean buying smaller start ups or companies that have highly-unique technology or products that can benefit Jakks Pacific's future offerings. Lastly, acquiring additional character and product licenses can grant Jakks Pacific the ability to offer exclusive brands that are highly in demand that their competitors can't offer. Currently, Jakks Pacific has license arrangements with Nickelodeon, Disney, and Warner Brothers, for example, but they must gain more exclusive licensing deals (Jakks Pacific, Inc.,