Spin Master Case

Spin Master is known as one of the top toymakers in Canada . Like all successful companies Spin Master faced many challenges and had to make many strategic decisions when starting up. They were determined to assure their permanent spot in the global market, competing with Hasbro and Mattel. With the start up of their new company, Harary, Rabie, and Varadi's first key decision made once they came out with their first product, The Earth Buddy, was that they teamed up with Roots Canada Ltd. As stated in the article, Rabie decided it would be the ideal company to team up with based on their "urban-adventurer image" and allowed them to test the product in the market. Following the success of their first product, came the order from K-Mart. This …show more content…
However, there could be many decision errors and traps that could affect their future. One of them being representativeness heuristic, it is when people make a decision based on a similar situation they dealt with before. This can be a problem for Spin Master in the future because they could easily make a decision about a toy they feel will be successful because another toy similar to it was. In order for them to assure that the new toy would be successful it would not be ideal to base it off the success of a previous toy. Another error and trap they might face is escalating commitment, that is when a company continues its actions even though it is not working for them. Since the toy market is highly competitive and the interests of children are constantly changing it is important that Spin Master stays away from committing to one course of action for their toys. In the past they have had no problem being innovative, but in today's society it takes a lot to come up with a good idea that is original. Thus, Spin Master needs to assure that they will continue making decisions from different experiences. It is important that Spin Master continues being innovative for future success and to make sure their toys continue to impress their target