Case Study Analysis: 1uptoys - Breaking into the Global Toy Industry

This case study analyzes 1uptoys, a startup focused on developing next-generation toys, and its journey to break into the global toy industry. The assignment delves into the tools and techniques employed, including VMOST analysis, market positioning, and market entry strategies like licensing. It explores key concepts and theories such as risk-bearing, innovation, and the cultural theory of entrepreneurship. Furthermore, the analysis identifies and supports evidence of entrepreneurial characteristics like risk-taking, networking, creativity, and self-starting behavior. The case study also defines and discusses the adaptability and sustainability of 1uptoys as a business, highlighting its evolution from traditional toys to tech-based toys and its efforts towards environmentally friendly production. The document analyzes the company's strategies in navigating the competitive landscape and adapting to market trends.

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Contents
What tools and techniques are applied in the case study 1 uptoys – breaking into the global
industry?..........................................................................................................................................2
Concepts and theories in the case study 1 uptoys – breaking into the global toy industry.............3
Identify and support evidence from the case that could be defined as “entrepreneurial
characteristic”..................................................................................................................................4
Define both an “adaptive” firm and a “Sustainable” firm...............................................................5
Discuss the sustainability and adaptability of the business in the case study..................................6
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What tools and techniques are applied in the case study 1 uptoys – breaking into the global
industry?
1. VMOST analysis
VMOST analysis is a framework and evaluation technique for strategic planning in an
organization and stands for vision, mission, objectives, strategy, and tactical. 1 uptoys had a clear
vision and mission of transitioning from traditional toys to the “next generation” toys; that is,
electronic toys. The ambition of the company was to be a “leading inventor of next-generation,
highly innovative electronic toys for children and gadget enthusiasts." The tactical analysis was
to tap the changing toy market that was changing from traditional toys to new generation toys
globally.
2. Market positioning
Marketing positioning refers to creating a particular image of a brand or product in the
mind of a consumer and turning it into a selling point. Given the current toy market and how
flexible it is, the major selling point is the movie characters. Thus, 1 uptown has deviated from
characters such as Barbie to more sophisticated toys in terms of merging electronic toys and
video games.
3. Market entry strategy
1 uptoys was a partnership initiative with Mannak having 55% and his partner 45% of the
shares but while entering the global market, they used the licensing market entry strategy. It
involves giving a foreign company permission to property which is intellectual for a certain
period. 1 uptoys contracted Silverlit for the deal on a royalty per unit basis.
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4. Porters 5 model
It involves analyzing the threat of competition, new entrants, bargaining power of
suppliers, and formulating strategies based on the conclusion results. In the industry, there are a
lot of competitors and small companies which have an edge over 1 uptoys. To wade of
competitors, the company has contracted an established supplier OEM's which has numerous
retail stores in the European market.
5. Marketing strategy
This can be described as the act of promoting a product or service in a bid to sell more
units thus making them profitable. 1 uptoys used this concept in that it based some of their toys
on television and movie characters which have inbuilt brand awareness thus making them more
profitable as they have a lower cost of marketing like advertising.
Concepts and theories in the case study 1 uptoys – breaking into the global toy industry?
1. Risk bearing concept
This concept involves the risk of bearing a loss when starting a new business or while
expanding it like in this case entering the global market. Mannak had an idea of new toys and
together with his partner invested in it.
2. Innovative concept
The concept can be described as the action of coming up with a raw idea and
implementing it into a product or service that has a monetary value. 1 uptoys came up with an
idea of more retro-toys; that is air-drum toys.
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3. The cultural theory of entrepreneurship
The theory states that entrepreneurs seek to take opportunities in the changing society.
The world has evolved rapidly, the toy industry has moved on from old toys to newer and
technological toys. 1 uptoys seized this opportunity to come up with retro-toys.
4. Communication theory
This involves the generation of information, the transmission of the information, the
media used to transmit the information, and how the intended target receives the information.
Identify and support evidence from the case that could be defined as “entrepreneurial
characteristic”
Entrepreneurial characteristics can be defined as the personalities that define an
entrepreneur. In this case study they are as follows:
1. Risk-taker
As defined earlier, risk-taking involves taking a calculated risk or uncertainty by an
entrepreneur which staring up or expanding a business. Mannak and his partner invested $24,000
without the certainty of any returns. Mannak quit a well-paying job as a Chief Technological
officer to start his business enterprise. The company also ventured into a product that was not yet
tested in the toy market.
2. Networking
Networking can be described as the process of socializing with others in a bid to
exchange ideas and resources thus creating contacts that are professional in nature. Mannak was
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good at networking in that his friend's contacts to set up a meeting with Caper Klinkhamer the
director of Toys R Us for advice and upon seeing the potential of the plan, he directed them to
Silverlit who later became a licensing partner.
Also, for the management, the company recruited and hired talented employees who at one point
were in contact with Grasso or Mannak.
3. Creativity
Creativity involves coming up with an original idea. Mannak went to the drawing board
after looking into the toy market and came up with the idea of developing electronic toys. The
idea of his improved air-drums with realistic noises had not been implemented in the toy
industry.
4. Self-starter
A person who is a self-starter can be defined as an individual who prompts themselves to
initiate and implement tasks. In this case study, Mannak and his partner lacked the funds to start
their company but it did not demoralize them. They tried several avenues including bank loans
until they accomplished the task of acquiring initial capital to start up the company.
Also, the prototype toy was not ready and there were complications but Mannak was
determined to come with the product while meeting a tight deadline and he was able to
accomplish the same.
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Define both an “adaptive” firm and a “Sustainable” firm
An adaptive firm is one that acclimates to and grows in regards to the current market
situation and its environment, thereby putting themselves in a situation of profit maximization
and also increasing their chances of survival in the competitive industry of their operation.
On the other hand, a sustainable firm can also be described as an environmental or green
company and is one that has fewer or no adverse effects on the environment in its final product,
processing, and manufacturing while remaining profitable.
Discuss the sustainability and adaptability of the business in the case study
1 uptoys is an adaptable firm in that it has evolved from the traditional toy such as
Mattel’s Barbie doll to the new technology toy industry. The company has to adapt from low
seasons where sales are minimal to the high season (November and December) where sales are
high and account for about 45% of the annual sales. Also, kids have a mentality that can be
described as a short-lived thus lose interest in toys quite fast. Thus, the company has to
continually come up with toys that are of continuous interest to kids. It achieved this by
endorsing deals with entertainment companies where it would produce toys that were based on
movie stories and characters in movies.
1 uptoys is a sustainable company by the fact they innovated a product that is that
deviates from pressing buttons to a virtual version of the same. Most toy buttons are made from
plastics or other chemically induced rubber materials that are not bio-degradable. As thus, the
company's production and manufacturing process is ecofriendly and also the toys produced have
less landfills when disposed of.
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